KEY POINTS:
Auckland International Airport's incoming chief executive Simon Moutter reckons his experience tangling with regulators will come in handy in his new job.
During much of his nine years at Telecom he was cast into bruising dealings with the Commerce Commission over reorganisation to break down the company's dominance, and as head of PowerCo in the 1990s he had exposure to the regulator during an expansionary phase. The airport company now has the commission breathing down its neck over landing fees.
Moutter, who will take up the post within the next three months, was yesterday described by a market source as a "regulation magnet" for the commission and the Government.
He doesn't see this experience as negative. "I think I can bring a perspective but I strongly hold the view that regulator interests are strongly aligned to customer and national interests. There is a path that leads to good outcomes and regulators to understand the need for infrastructure investment."
Moutter, who has a reputation for being a direct negotiator and strong on cost containment, said it felt like "a good time" to move on from Telecom, where he was last month appointed chief transformation officer, having been chief financial officer.
"It's a hard decision, I'm quite sad about moving on from Telecom - I feel like I've put a lot of my life and personal energy into it but nine years is a long time in any business."
The 47-year-old replaces Don Huse, who has been in charge at Auckland Airport for five years.
The airport company has been in play for the past two years, during which a Dubai company attempted to take it over then bailed before the bid got under way, and the Canadian pension fund's partial takeover was welcomed by shareholders but rejected by the Government.
Moutter said he did not yet have a view on what the future ownership and capital structure may look like but "for the stability of the business it warrants further effort to get it resolved".
Airport chairman Tony Frankham said among Moutter's strengths was his experience leading infrastructure businesses.
The board had met once since the Canadian fund was vetoed and was looking forward to Moutter's contribution to the ownership debate.
"We need to determine what the objectives are for changes in the ownership and the business case and then we've got to sit down and go to it. We're looking forward to Simon's input."
Frankham said consolidation was important for the board and management team which would be refreshed following the resignation of chief financial officer Robert Sinclair and property general manager Chris Gudgeon. "An important part of my endeavours is to re-establish the perceptions of the value of the asset, the strength of the company, the value of the management and the strength of the board - it is part and parcel of Simon joining us and contributing to that," Frankham said.
Auckland Airport, which is raising landing fees 2.5 per cent a year over five years, is nearing the end of a four-year, $500 million upgrade and expansion. The Commerce Commission review last November recommended airports be regulated under the Commerce Act rather than the Airport Authorities Act.
Airlines and airports have battled for years over landing and other aviation fees. Airports have been required to negotiate with airlines but can impose fees which aren't agreed to.
Moutter said at Telecom he had worked briefly alongside Rob Fyfe, chief executive of Air New Zealand, one of the strongest critics of airport landing charges.
"I have a good working relationship with Rob and his team and it's in the interests of any business to maintain good positive relationships and open lines of communication with key customers and suppliers."
Moutter will be paid a salary of $800,000 a year, plus a short-term incentive of up to $600,000 and, under a long-term incentive plan, will be granted 3 million phantom options or notional shares, which will be based on a price of $2.20. If he meets certain conditions he can exercise them after set time periods for the company's share price minus $2.20.
Auckland Airport's share price yesterday closed unchanged at $2.25.
IN THE HOT SEAT
Old job
* Telecom ran foul of regulators over market dominance.
* Strong competition has eroded earnings.
New job
* Auckland Airport faces yet more ownership and capital structure challenges.
* Airport charges are under Commerce Commission scrutiny.
