Airport to fight price controls

Friday 6th July 2001

By Graeme Kennedy

Auckland International Airport (AIAL) chief executive John Goulter will respond strongly in submission hearings to "misinformation" about his company's charges after the Commerce Commission's recommendation this week that price controls be placed on the business.

Mr Goulter was expected to make a public statement on the recommendation today but said he would not answer "a lot of misinformation out there" until the hearings.

The commission investigated the rates of return on assets the three major airports, as monopoly businesses, required and the assets on which they based their calculations to set landing fees.

It found all three had overvalued their asset bases and that Auckland's rate of return had averaged 3.7% too high for several years.

Price controls would mean the airport's income would be about $16 million lower than expected over the next three years.

Mr Goulter said he supported Commerce Minister Paul Swain, who pointed out the recommendation was preliminary only - "and may or may not represent the final view of the commission itself."

"In the end, it is up to the government to decide whether any final recommendations are pursued or not," Mr Swain said.

AIAL shares have dropped 30c to $3.52 since the announcement on Tuesday afternoon.

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