Air New Zealand urges action after Commerce Commission review criticizes airport pricing

He welcomed the Commerce Commission’s recommendations for earlier oversight of large airport expenditures. “We welcome the Commerce Commission's report and its recommendations to enable earlier oversight of large airport spend. The report also highlighted significant gaps in how the current oversight regime works and called for targeted changes. These changes may well achieve what we had hoped to accomplish through an inquiry. This is not a vote of confidence in the status quo, and the Commission's recommendations should be acted on with urgency before further costs are locked in and passed on to everyday Kiwi travellers and businesses,” Foran said.

The Commission’s report pointed out a timing gap that limits its ability to influence outcomes before they become fixed and questioned whether current inquiry options are effective.

Foran noted Air New Zealand’s support for reasonable investment but cautioned against unchecked spending: “As the national airline - and the only airline from New Zealand that is flying to 20 different airports around the country - we support sensible investment. But airports do not work in isolation, and the level of their investment must be at a scale that both airlines and passengers can afford - not just in a few years, but over the long-term.”

He added that rising airport charges could impact travel affordability: “Airport charges across the country are one of our fastest-growing cost. As just one example, without regulatory change, economic analysis shows that Auckland Airport's current pricing settings could result in 3.9 million fewer domestic passenger journeys by 2032 because domestic air travel around New Zealand will be less affordable. That suppresses growth.”

Addressing claims from Auckland Airport regarding price increases, Foran said: “Auckland Airport claims their charges are going up by $1.26 a year, but that figure leaves out the cost of their multi-billion-dollar terminal, which isn't due to open until after 2027 and therefore isn't reflected in current prices. The airport has never publicly disclosed what that terminal will mean for passenger pricing and under the current regime they don't have to. That's exactly the kind of issue the Commission is concerned about.”

He concluded by emphasizing transparency concerns: “Until the rules change, Kiwi consumers will keep hearing modest figures from airports while the real costs build quietly in the background. By the time they have to disclose the true cost, it will be too late for anyone to intervene and ensure that airport investment genuinely supports New Zealand's long-term economic growth,” said Greg Foran.