KEY POINTS:
An organisation representing international airlines wants the Commerce Commission to carry out an inquiry into new landing charges announced by Wellington International Airport overnight.
The airport said it would increase landing charges by up to 2.85 per cent a year for the next five years . That would amount to about 30c per passenger each year for most passengers, and less for regional passengers.
The airport also said it had confirmed its intention to continue with upgrades worth more than $46.5 million during the next two years.
Board of Airline Representatives NZ executive director Stewart Milne said his organisation was convinced the airport was using its monopoly position to impose unwarranted increases in charges on airlines and consequently on the travelling public.
Recent financial disclosures, which formed part of consultations between airlines and the airport, showed the airport was currently over-recovering through its existing charges.
"On the basis of the value of their assets and treating revaluations properly, which Wellington has not done, then they are currently over-recovering -- getting more revenue from airlines and passengers than they are entitled to," Mr Milne said.
The difference in revenue between what the airport should be charging, which would be a decrease in landing charges, and what it was seeking with the 2.85 per cent increase, was $18 million a year.
The only way the airport could justify any increase in charges was through setting its prices off revalued assets without properly treating the unforecasted revaluations as income, Mr Milne said.
In the past five years the airport had experienced unforecasted asset revaluations of $120 million, mostly on land.
In its statement, the airport said its decision to increase fees followed extensive consultation with major airlines. During those talks compromises were made and common ground reached on many issues.
"That is not to say that there is agreement on all matters, or that airlines will welcome any price increase, albeit small," the airport said.
All but one party were in support of Wellington Airport's investment programme.
The result would be better facilities for passengers, a safer airfield and greater capacity to grow the Wellington market, the airport said.
Shares in Infratil, which owns two-thirds of the airport, were up 1c today to $3.27, while those in Air New Zealand were down 5c to $3 after the airline revealed yesterday discounting had hit margins in May.
- NZPA
