Airport to retain passenger tax, despite lower security costs

Auckland International Airport (AIA) does not plan to lower its international departure tax despite upcoming changes which means the airport will no longer bear the brunt of security costs.

AIA charges an airport development charge (ADC) of $25 as a departure tax for international passengers, of which $5 is a security charge. As of October 1, costs associated with security services must be covered by airlines not the airport.

But AIA said in a statement that following a consultation process with airlines, it has decided to keep its ADC at $25.

"The retention of the charge at this level is necessary to assist in meeting the costs associated with major terminal development projects being undertaken at the airport,'' the company said.

AIA said the Board of Airline Representatives of New Zealand (Barnz), which consults on behalf of the airlines had acknowledged that maintaining the ADC at $25 was justified given the international terminal expansion programme at the airport.

AIA plans to spend $150 million during the next three years expanding the number of airport gates, upgrading runways and altering the terminal, as well as developing a second international pier to take about 12 aircraft stands.

Shares in the company gained 3c to $2.06 on the news, having ranged between $1.61 and $2.18 over the past 12 months.

- NZPA