Infratil tips price rises for airport

Wellington's airport looks likely to raise prices for planes flying into the city.

Infratil, two-thirds shareholder of Wellington International Airport, made it clear at its annual meeting in Wellington on Monday that it felt charges were too low, and a review now underway was likely to recommend higher charges.

Airfares are likely to rise as airlines pass on the higher costs.

However, the Commerce Commission is recommending price controls at Auckland Airport and could extend the control to Wellington if it raises landing charges too much.

Infratil chairman Kevin O'Connor called the threat of price controls a risk for the company.

Morrison & Co director Tim Brown, who works with Infratil, said it was not surprising that the commission should have cleared Wellington Airport for the moment because its charges were low, but he expected they would rise next year. Charges had not increased at Wellington for five years, he said.

Meanwhile, the airport is trying to encourage Richard Branson's Virgin Blue to include Wellington on its flight schedule. Mr Brown said Virgin could halve airfares, which would boost the airport company.

Infratil has also signalled that it might quit electricity retailing if it wins control of TrustPower.

Tauranga-based TrustPower is going through a messy boardroom spat, but Infratil said yesterday that it was confident of gaining greater influence over the company in partnership with United States power firm Alliant.

Infratil is also trying to sell its remaining stake in Natural Gas Corp. It opposed NGC's takeover of No 1 retailer TransAlta last year.

Of Infratil's most recent major acquisition, Scotland's Prestwick International Airport in Glasgow, Mr Brown said the company expected a very high rate of return on the investment.

Infratil also has a 19 per cent stake in Port of Tauranga.

- NZPA

Southern Skies Properties Limited

Air wars - the cast list

www.nzherald.co.nz/travel