AUCKLAND: Any ministerial review of Auckland International Airport’s plans to raise charges for airlines using its terminals will not happen until the competition watchdog has progressed on its review, New Zealand’s commerce minister said on Wednesday.
Air New Zealand said earlier on Wednesday it had lodged an official request with the minister, Andrew Bayly, to look at government regulation and if it was fit for purpose.
The country’s largest airline is concerned about Auckland Airport’s plans to redevelop the airport and to pay for this in part by increasing fees charged to carriers and does not believe there is enough regulation over their price setting.
The Commerce Commission is undertaking a review of the proposed fee schedule and will release a draft report on this in May.
Bayly told Reuters in an email he was concerned by the proposed increased charges but will wait to make any decisions until the commission has made progress on its review.
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“I will closely monitor this process,” he said. Bayly added, however, he was meeting with airport Chief Executive Carrie Hurihanganui later in the week and would express concerns about the effect of increased charges on air tickets.
Air New Zealand, which is majority government-owned, said increased charges will lead to higher airfares. It wants Auckland Airport to pause its redevelopment and look at cheaper options.
The Auckland Airport redevelopment plan includes a new domestic terminal and domestic airfield expansion, expansion of the international terminals and a new ground transport hub. It does not include a second runway.
Auckland Airport said in a statement that domestic airline charges had been lower than other airports for many years and that had benefited Air New Zealand.
It added that it was currently engaged in the Commerce Commission’s review.
