Air NZ asks Court to Review Wellington Charges

Media Release
14 August 2007

Air New Zealand asks Court to Review Wellington Airport Charges

Air New Zealand has again been forced to resort to the Courts over airport landing charges.

The airline confirmed today that it was seeking a Judicial Review of recent charges imposed by Wellington International Airport Ltd (WIAL), and had filed proceedings with the High Court in Wellington.

This follows Air New Zealand’s decision last month to seek a Judicial Review of charges imposed by Auckland International Airport Limited.

In its Statement of Claim against WIAL, Air New Zealand is challenging the validity of the airport’s consultation, which it says showed a predetermination of increases expected by majority shareholder Infratil Ltd.

Air New Zealand General Counsel John Blair says this is an abuse of WIAL’s monopoly position, which fails to deliver benefits to passengers and will see

Air New Zealand’s airport costs in Wellington increase by more than 34% over the next five years.

Mr Blair says the multiple landing charge increases are invalid because airports must consult each time they increase charges.

“The statutory power under the Airport Authorities Act should not be permitted to confer upon WIAL the power to set charges that result in monopoly profits,” he says.

Mr Blair says it is regrettable that Air New Zealand has to take the matter to the High Court, but the airline has no other recourse under the current regulatory regime.

“The charade of so-called “consultation” does nothing to constrain airports, which start with extortionate increases and seek to demonstrate an open mind by agreeing to lower, but still unjustifiable, increases. It’s the childhood trick of ‘if you want a dog, ask for a pony’ played with consumers’ wallets,” he says.

“The current review of the Commerce Act is a critical opportunity to establish a regime which introduces commercial reality. No other country has such a derisory price setting regime. Airports’ monopolistic behaviour must not be allowed to continue to choke the economic growth of New Zealand.”

ENDS

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