Sharechat Logo

Air NZ withholds higher airport charges

By Phil Boeyen, ShareChat Business News Editor

Friday 20th October 2000

Text too small?
Air New Zealand is withholding the first increase in landing charges due to be paid today to Auckland International Airport as the two companies line up to do battle in court.

The airline yesterday announced it has filed legal proceedings against AIA over the increased charges, and says it is taking the lead on behalf of all the airport's airline customers.

Auckland Airport announced progressive increases in landing charges starting from the beginning of September this year with an 8.5% rise, to be followed by further increases next September and in 2002.

Air New Zealand pays around half of the airport's estimated $46 million in landing charges each year, but claims the airport failed to consult substantial customers before November 29 last year, as required under the Airport Authorities Amendment Act 1997. The airline also says the airport failed to consult adequately in respect of the increased charges announced on August 22, and imposed future increases without apparent intention to consult as required by law.

Air NZ spokesperson, David Beatson, says Auckland Airport is seeking increased charges which can't be justified.

"That is of obvious concern to all users, especially when much of AIAL's success is based upon passenger volume increases in a natural monopoly business that is mainly fix-cost".

The managing director of AIA, John Goulter, would not make any comment on the proposed court action.

NOTE: please be advised to read full articles from Business Desk Website, you will have to pay a subscription fee on their website.



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Auckland International Airport Limited (NZX: AIA)
Auckland Airport sees growth in luring Asian travelers, tapping landbank
Auckland Airport shares climb to 6-year high on better earnings, higher dividend
Auckland Airport boosts FY profit 25 percent as property values rise, ups dividend
Auckland Airport expected earnings just within regulator's tolerance
Ex-Fonterra chairman van der Heyden to lead Auckland Airport board
Auckland Airport's 8 percent expected returns 'reasonable', regulator says
Auckland Airport 1H profit rises 11 percent on growth in domestic passenger traffic
Pre-Offer Announcement - Auckalnd International Airport
Auckland Airport flags $100 mln bond offer

IRG See IRG research reports