Auckland airport pricing report welcomed by domestic airlines

The statement noted that while the Commerce Commission’s draft suggests that investment in Auckland Airport’s development may be appropriate, this view is not shared by many of AIAL’s aeronautical partners. This will be a significant aspect of their response to the draft report.

Domestic carriers believe that the current regulatory regime does not serve New Zealand consumers' best interests. Currently, AIAL is only required to consult with airlines but does not need to reach any agreement.

The statement said that “domestic airlines are calling on the Government to urgently commission an independent inquiry into airport regulation. This can be conducted under s56G of the Commerce Act, at the Minister’s direction."

“The Commission has a menu of regulatory options to keep regulated airports under control. These include steps that require airports to negotiate with their airline customers on a commercial basis, go to arbitration if that fails, or allow the regulator to set service prices and quality."

“These options do not require new laws to be passed; it’s not a case of more red tape or government intervention – airlines are simply asking the Commission to use its existing inquiry power to determine which regulatory option will deliver more control over airports and better value for consumers.”

Air Chatham’s Chief Operating Officer Duane Emeny stated, “An inquiry into airport regulation is a crucial opportunity to establish a regulatory environment that more effectively protects consumers and ensures that airport investments are made responsibly and affordably.”

Air New Zealand Chief Executive Greg Foran commented, “New Zealanders are in the midst of a cost-of-living crisis and businesses are cutting costs; the last thing they need is for more costs to be piled onto travel because Auckland Airport isn’t acting in New Zealanders' best interests."

“We agree some development is needed but we’re ready to get back to the table with Auckland Airport to ensure it has an affordable and enduring plan that helps connect New Zealanders with each other and the world. The right regulatory framework will allow us to do that.”

Barrier Air CEO Grant Bacon remarked, “The currently proposed redevelopment at Auckland Airport still has turboprops in another terminal. Smaller carriers and regional passengers need to walk between terminals but gain little from large-scale development while still paying for it. There is also no new runway factored into this large spend.”

Jetstar Group CEO Stephanie Tully added, “As a low-cost carrier, Auckland Airport’s proposed redevelopment would result in steep increases in passenger charges impacting demand for air travel and our ability to offer low fares Kiwis really value.”