Auckland Airport has increased landing charges by 2.5 per cent per annum for the next five years.
Auckland Airport has increased landing charges by 2.5 per cent per annum for the next five years.
KEY POINTS:
Air New Zealand is comparing the way airports in this country set charges as "tantamount to the privatisation of taxation".
The comments were made today after the airline made a 200-page submission to the Ministry of Economic Development on a review of the Commerce Act's regulatory control provisions.
They follow criticism in recent weeks from the Board of Airline Representatives NZ, which represents all airlines operating in this country, of increased charges at Wellington and Auckland airports.
In today's Air New Zealand statement, company chief financial officer Rob McDonald said the review of the Commerce Act was long overdue and had the potential to redress a one-sided approach which had long been to consumers' detriment.
Under the current regime, airports were required to consult airlines over charges but ultimately had the statutory right to set whatever fees they saw fit, he said.
"A privately owned unconstrained monopoly with the statutory right to set fees as they see fit is tantamount to the privatisation of taxation."
Air New Zealand said it was calling for a pricing framework that replicated a competitive market.
Airlines and airports should have the ability to negotiate on a level playing field, and call in an expert to only arbitrate if they could not reach agreement, the airline said.
Mr McDonald said such an industry-driven approach worked well in many other sectors including telecommunications and dairy.
The current approach, recently described as "no regulation" by the Australian Productivity Commission, was clearly failing to deliver outcomes that protected consumers and other airport users, he said.
The airline also wanted to see the $25 airport development charge now paid on departure from Auckland airport to be scrapped as part of regulatory reform.
It was clear from the returns being generated by the airport that the development charge was not necessary to support infrastructure development, Mr McDonald said.
