Infratil says Wellington Airport makes interest lift in charges

By NZPA

Monday 24th June 2002

Landing charges at Wellington International Airport Limited (Wial) will rise 10 percent on July 1.

The new charges will apply for major airline customers (Air New Zealand and Qantas) and from August 1 for smaller airlines operating at Wellington Airport.

Infratil, the two thirds owner of the airport said today the interim increase had been agreed with the major airlines.

Consultation over the final level of charges was continuing between Wial and the major airline customers (including the Board of Airline Representatives) as prescribed in the Airport Authorities Act.

There would be no increase in passenger international departure charges.

Air New Zealand and Qantas have kept mum about whether they will pass on the new charges to travellers.

For Air NZ, the increase is likely to cost it several million dollars because it is the airport's biggest airline user and contributor to the airport's $24 million a year in "aeronautical" revenue.

Wial is aiming to increase aeronautical revenue to about $40 million a year, from $24 million now.

Wellington's airport charges had been fixed for five years but domestic airfares had risen 43 percent in that time, Infratil executive Tim Brown said earlier this month.

Air NZ took Auckland airport to court last year over its proposed new charges. The parties settled out of court.

The Commerce Commission this year published a draft document on price control of airports, putting airports on notice that their prices were being scrutinised because they were monopoly businesses. Its final report is due before August.

Infratil claims Wial is not getting a reasonable return on capital employed.

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