Infratil heralds fairer returns after airport charges rise

The increase will raise aeronautical income from the current level of about $24 million to about $38 million a year.

Listed company Infratil said that when it bought its initial stake in Wellington airport from the Crown in 1998, it was with the expectation that prices would be adjusted after a 1997 agreement between the airport and the airlines expired.

Infratil said it supported construction of the airport's $116 million terminal in 1999, but until now the investment had not been reflected in aeronautical charges.

"Returns to shareholders have consequently been very low. The price increase is expected to see Infratil achieve closer to a fair return on its investment going forward."

Infratil warned, however, that Wellington International Airport faced uncertainty ahead with a difficult economic environment for aviation, and the potential airline alliance of Air New Zealand and Qantas, the airport's two main income contributors.

Wellington International Airport's net profit in the year to March 2002 was $3.4 million.

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