Airlines strike turbulence over rising airport fees

By DANIEL RIORDAN aviation writer

Wellington International Airport's attempt to raise its fees by around 80 per cent may have upset airlines, but compared with the increases sought or won by Australian airports its demands are not so outrageous.

The Sydney Morning Herald reports that Melbourne Airport is seeking an increase of up to 40 per cent, Adelaide wants 130 per cent, Perth 70 per cent and Brisbane 50 per cent.

Sydney lifted its fees by 97 per cent in May last year.

The Australian airports are seeking the increases after Canberra gave them the freedom to recover their costs in full from their aeronautical services (mainly access to runways and terminals).

Before that, the fees had been subsidised from other sources of income.

Wellington airport said last week that it was raising its fees temporarily by 10 per cent.

However, its goal is believed to be an 80 per cent increase, and the real battle with airlines has yet to be fought.

Passengers could be the casualties if airlines end up passing on the higher fees.

Airlines are understood to be arguing for a 20 per cent rise.

The five-year fee agreement between the airport and airlines ends on June 30.

Although the parties are far apart in their negotiations over the final increases, they have agreed to the 10 per cent interim rise, which took effect from yesterday for Qantas and Air New Zealand.

Increases for smaller airlines will be introduced from August 1.

Listed utilities investor Infratil owns 66 per cent of Wellington Airport, and the Wellington City Council owns the rest.

Last year, Auckland International Airport settled its dispute with airlines.

It compromised on planned fee rises (which ranged from 5.5 to 8.5 per cent over three years) and avoided a court battle.