Airlines slam AIA recent price hike as unjustified Courtesy of Auckland Airport Facebook page

Airlines slam AIA recent price hike as unjustified

Auckland International Airport has set unjustifiably high prices for international airlines to use the airport over the next five years.
So believes John Beckett, executive director of the Board of Airlines Representatives of New Zealand (BARNZ), who was speaking in response to the airport’s announcement this week it is to increase the fees it charges airlines over the next five years to help fund its infrastructure development.

Beckett says the airport’s target return on capital exceeds a profit benchmark set by the Commerce Commission.
‘The aeronautical revenue is around $65 million more over five years than it should reasonably be,’ Beckett says.
‘The airport company has not demonstrated that consumers will benefit from paying these high prices. These prices will only benefit AIA’s shareholders.’
Beckett says the airport has been able to set any price it sees fit because it is a monopoly.  
‘These prices would not have been agreed by airlines in a normal commercial negotiation.’
Beckett is further critical about future runway charges. ‘AIA has foreshadowed a ‘runway land charge’ from 2020, which could cost passengers around $51 million over the last two years of the five year pricing period. This would be a charge on every passenger that flies into Auckland to pay for the costs of holding land for a future second runway, which is not expected to be built until 2028 or even later. So passengers from 2020 could be asked to pay for something they are not using.’
However, BARNZ was supportive of the airports renewed focus on improving service quality and managing congestion at the airport.

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