Airline unhappy over rise

Wellington Airport wants to lift landing charges.

Air New Zealand is "extremely disappointed" with Wellington Airport's "excessive" proposal to lift landing charges 16 per cent over five years.

The airport's owner, Infratil, said yesterday it planned to increase landing charges 3 per cent per annum over the next five years.

It follows a proposed significant landing charge price increase from Auckland International Airport in July.

Air NZ spokesman David Jamieson said the airline "was being frustrated in its attempts to deliver the lowest possible costs for travellers" because of the excessive prices charged by both airports.

The airline was on the "back foot" because the Wellington proposal was released to the media yesterday before it received a copy.

It was "extremely disappointed" in the proposal but had not had any opportunity to evaluate it in detail.

Wellington's landing charges increase were "off the back" of an increase of 78 per cent in 2002.

"Having overly inflated its charges in 2002, the proposal demonstrates that Wellington Airport is now intending to sustain these excessive charges and profits going forward," said Jamieson.

Infratil described the landing charge increase as modest.

"The increases are below inflation levels and wage growth, which is closer to 5 per cent per annum."

It said the jump in landing charges was driven by operating cost pressures, hikes in construction costs and increases in asset values.

Board of Airline Representatives executive director Stewart Milne said the real issue was whether Wellington and Auckland were "entitled to any increase at all".

He said the board's appraisal of Auckland's proposed landing charges would be finished by the start of next month and an analysis of Wellington's proposal would be completed by December.

It believed both airports had over-recovered costs and over-valued assets for years.

Wellington's proposed landing charge increase was "significant" and only a monopoly could "come out with ideas like that". It also did not bode well for the future development of tourism.

However, the board was looking forward to discussing the proposals in the next few months..

The proposed increase means that, in the first year, airlines would be charged $9.60 for each domestic passenger on jet services and $5.40 a passenger on turboprop aircraft, an increase of 28c and 16c respectively.

The airport departure charge of $25 would remain unchanged for the next five years.