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The International Air Transport Association (IATA) has raised concerns about New Zealand’s economic regulatory framework for airports, specifically questioning the current light-touch approach. According to IATA, this allows Auckland Airport to independently set its aeronautical pricing. As the only monopoly provider, Auckland Airport can potentially manipulate the regulatory system by initially setting prices high and adjusting them at its discretion post-regulatory review.
The association points out that non-aeronautical activities, which typically yield higher returns, fall outside the oversight of the Commerce Commission, complicating matters further.
Although Auckland Airport is making substantial investments in infrastructure, airlines have voiced concerns about various aspects of these investments, such as cost allocation, affordability, and whether the planning and investment could have been managed better in the past to avoid such costs. Xie from IATA highlighted, "Aviation is a key economic sector for New Zealand, supporting 5.6% of the country’s GDP and 177,000 jobs. The delivery of demand-driven, functional and cost-effective infrastructure will support the continued development of New Zealand’s aviation sector. The current consultation process with Auckland Airport is ineffective and may not deliver outcomes that are in the best interests of passengers. This needs to change.”
