Group Calls For Official Inquiry
When
Wellington International Airport in Wellington, New Zealand,
announced it was increasing its landing charges, its airlines
immediately cried foul.
The Board of Airline Representatives New Zealand (BARNZ), an
organization that represents international airlines has requested
the New Zealand Commerce Commission, the enforcement arm of New
Zealand commerce, to conduct an official inquiry into the
increases.
Some of the airlines at WLG include Air New Zealand, Qantas,
Sounds Air, Pacific Blue and Freedom Air.
WLG is raising its landing charges by up to 2.85 percent a year
for the next five years, according to the Australian Associated
Press. That translates to about 30 Australian cents per passenger
per year. The airport said it will be continuing with upgrades and
improvements estimated at more than $46.5 million during the next
two years.
"These investments in safety and growth are absolutely necessary
for Wellington Airport to comply with international safety
standards, and to cope with current and forecast levels of
international air travel in Wellington. They also deliver more
pleasant facilities for customers in international lounges, an area
that was not properly addressed in the last terminal upgrade," the
airport said.
But, the airlines say WLG has set its new fees higher than
necessary. According to recent financial disclosures, the airport
is over-recovering through the existing charges.
"On the basis of the value of their assets and treating
revaluations properly, which Wellington has not done, then they are
currently over-recovering -- getting more revenue from airlines and
passengers than they are entitled to," BARNZ executive director
Stewart Milne said.
According to the AAP, the difference between what the airport
should be charging and what it is asking for is $18 million a year.
Milne contends the airport is using a monopoly status to impose the
unwarranted fee hikes on carriers.
WLG said it decided on the fee increase after "extensive
consultation" with major airlines. The airport contends
"compromises were made and common ground reached" on many issues
during the talks.
"That is not to say that there is agreement on all matters, or
that airlines will welcome any price increase, albeit small," the
airport said.
"Revenue from the increased charges will contribute to funding
the investment program of aeronautical projects already complete or
underway worth over $40 million, the third stage of its
international terminal upgrade and expansion, worth another $39
million, and the Northern Runway End Safety Area ($7.5 million),"
the airport further stated.
"The result would be better facilities for passengers, a safer
airfield and greater capacity to grow the Wellington market."
"We are very confident that this package is in the best
interests of traveling customers and airlines who wish to grow the
market", said Simon Draper, Wellington Airport Chief Executive
Officer. "The bottom line is quite simple: we are delivering much
better airport facilities with very minor price increases".