Cut landing fees – Air New Zealand

Media Release
18 December 2008

Cut landing fees – Air New Zealand

New Zealand airports are being urged to help stem the drop off in tourism numbers by following a Singaporean initiative making it cheaper for airlines to operate flights at its international airport.

As part of its extended incentive package for 2009 the Civil Aviation Authority of Singapore (CAAS) is offering a 25 percent landing fee rebate for airlines operating flights at Changi Airport – 10 percent more than the rebate it is currently offering.

Air New Zealand Deputy Chief Executive Norm Thompson says Auckland, Wellington and Christchurch airports should immediately follow suit and work with airlines to help stimulate travel to New Zealand.

“As global economies continue to tighten we all need to play our part in stimulating travel. Airports could assist in keeping fares lower by reducing landing fees during this economic downturn,” he says.

“We are in the business of trying to encourage people to fly - especially at a time when household incomes are under pressure - and airports that continue to bolster their profitability through excessive landing fees need to do their bit to make travel as affordable as possible.

“Unlike Singapore, the costs of landing at Auckland, Wellington and Christchurch airports are excessive already by international standards. That CAAS is stimulating the market by lowering landing costs at Changi even further should be a loud signal to New Zealand airports.”

Mr Thompson says in the face of slowing global demand, Air New Zealand has introduced a wide range of initiatives to enable it to keep offering great-value deals to its customers.

“For example, in the past three months Tasman fares have been reduced by an average of 15%, with some dropping by up to 45%, while Pacific Island fares have also fallen twice in the same period. Across the rest of the network we have dramatically increased the number of lowest available fares, including doubling the number of cheapest fares on our domestic services.

“Landing fees are ultimately passed on to customers and any reductions by the airports will result in lower fares for our customers, further helping to stimulate domestic travel and tourism,” Mr Thompson says.

Mr Thompson says airports have an important role in ensuring the ongoing viability of New Zealand’s tourism industry and need to work with airlines and airport partners to reduce operational expenses wherever possible.

ENDS

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