Air NZ drops airport action

By Graeme Kennedy

Friday 9th November 2001

Air New Zealand has dropped its High Court action against Auckland International Airport after reaching a long-term agreement on the controversial landing charges issue.

The carrier last year began proceedings against the airport company, claiming it had failed to enter into adequate consultation with its airline clients before announcing fee rises. Air New Zealand refused to pay the increases after initiating the action.

However, the payments were paid this week after the two parties signed a six-year agreement which substantially lowers landing charges for Air New Zealand and all other carriers using Auckland.

An 8.5% increase applied for 12 months from August 2000 is reduced to 7.5%, and although a 5% rise from September 1 this year will remain, a similar increase to have been introduced on September 1 next year will now not proceed.

There will be no landing charge increases for the following four years to August 31, 2007.

Air New Zealand executive director Roger France said while the international aviation industry was under heavy pressure, it was "pleasing" at least one element of uncertainty had been removed.

Meanwhile, the Commerce Commission is continuing its investigation into airport pricing at Auckland, Wellington and Christchurch. The commission originally said it would make its report this month but has extended the date into the second quarter of next year.

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