Qantas raises fares to pay airport levy rise

By CHRIS DANIELS

Qantas has raised its fares for passengers flying through Wellington Airport.

The airline is levying an extra charge on its customers to pay for the 78 per cent increase in fees imposed on it by the airport company.

A Qantas spokeswoman said the ticket price increases were similar to increases this month by Air New Zealand.

Air New Zealand ticket prices rose up to 10 per cent, the average being around 5 per cent.

Qantas is passing on the extra money to the airport company, while Air New Zealand is holding on to its increase for now.

The airport company 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 and refused to pay the airport.

It says if a court decision on the charges finds it has collected too much money from its passengers, it will not refund the money but instead make a contribution to promoting Wellington tourism.

The airport company has filed proceedings in the High Court to force Air New Zealand to pay a disputed sum of $7,057,000.

Air New Zealand has asked the Government to impose a price control on the airport, saying it has abused its monopoly position.