Mayor rejects airlines' plea

By DANIEL RIORDAN

Christchurch mayor Garry Moore has rejected a plea from airlines to intervene in their dispute with Christchurch International Airport over its higher landing charges.

Charges rose on January 1 for many aircraft using the airport.

The Christchurch City Council owns 75 per cent of the airport and the Government the rest.

Mr Moore says the fees are an operational issue and he does not plan to get involved.

On average, international landing charges are down 20 per cent, but domestic charges have gone up 25 per cent. The size of the increases depends on the type of aircraft.

Air New Zealand, which has international and domestic services at the airport, expects higher costs. Qantas New Zealand expects to pay an extra $500,000 a year.

Charges rose at Auckland International Airport last September.

The airlines will be under pressure to recoup the higher costs, possibly by increasing ticket prices.

Airlines say they operate on returns of less than 5 per cent.

The Christchurch dispute centres on the airport including in its calculations $30 million of capital spending on its international terminal, which will not be built for six years.

Airlines say the terminal is already too big, and including future spending in current calculations goes against international practice.

Airport chief executive George Bellew said the charges were worked out after 15 months of consultation with the airlines. He did not want to get into a debate on the issue.

The airport will bill the airlines at the end of this month and payments will be due by February 20.

The executive director of the Board of Airline Representatives, Stewart Milne, said airlines were still deciding what to do. They could refuse to pay the increase and/or take their complaints to the Commerce Commission.

The dispute over Auckland charges is still heading for the High Court, unless a compromise is reached. Air New Zealand refuses to pay the higher charges. Qantas and freight carrier Cargolux have negotiated lower rates.