Minister following airport fees dispute

Craig Foss
Craig Foss
The spat between Air New Zealand and Dunedin International Airport over increased airport fees is being watched "with interest" by Commerce Minister Craig Foss.

Last month, the airline slammed an "unjustified" increase in landing fees, with passenger fares increasing by up to $4 to fly from the airport, Air New Zealand Australasia operations general manager Glen Sowry said.

Airport chief executive John McCall said the revised landing charges, which applied from December 1 last year, were made in accordance with the requirements of the Airport Authorities Act.

Mr Foss said the Act allowed airports to set charges once up to every five years, in consultation with customers.

"There are no powers under that Act or the Commerce Act for ministers to impose a price freeze."

Mr Foss said he and the Minister of Transport had been noting "with interest" the increase in airport prices.

The Commerce Commission would report to both ministers concerning pricing issues at Auckland, Wellington and Christchurch, and "looking at the effectiveness of the Commerce Act".

"These reports will be key in informing us whether the current regime is delivering the right outcomes for New Zealanders.

"We are following closely the consultation processes between airports and airlines, and airports' pricing decisions.

"I expect that commission to examine the issues as a matter of priority. This information will be key in informing ministers' views on these issues," Mr Foss said.

- hamish.mcneilly@odt.co.nz

 

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