D-day for Wellington airport fees

By CHRIS DANIELS aviation writer

Wellington International Airport will learn today whether Government price controls will be imposed on its ability to charge airlines to use its runway and terminal.

Commerce Minister Lianne Dalziel is due to announce her decision on a request from airlines that the airport company backs down from its recent 78 per cent rise in charges.

Air New Zealand and Qantas have increased their fares for passengers using the airport, and in some cases, for flights that run on routes that could have used the airport.

Qantas is paying the fee to the airport company, but Air New Zealand is refusing to pay.

Air NZ says that if a later court decision finds it has recovered too much, it will not refund the money to the passengers who have paid it, but use it to help promote Wellington tourism.

The airport, which is 66 per cent owned by listed infrastructure company Infratil, with the rest owned by the Wellington City Council, says the increased charges allow it to earn a decent rate of return, particularly on its $116 million investment in a new terminal.

Air New Zealand has challenged the fee increase in court - where the airport company has also filed proceedings to force the airline to pay a disputed sum of $7,057,000.

The minister's decision is based on the results of a Commerce Commission investigation into airport pricing, that was ordered by Government.

Last July, the commission cleared the airport company of charging excessive prices but said if there was a significant rise in charges, controls might be needed.

When the company introduced its 78 per cent fee increase, Air New Zealand and other airlines went to the minister, pointing out that this time had arrived.