Airlines claim on Wellington profit grab is proven

Media Release May 16 2013

Airlines claim on Wellington profit grab is proven

Wellington Airport’s 20 per cent jump in its revenue from airlines reported today proves the airlines’ claim about the airport abusing its monopoly position.

John Beckett, executive director of the Board of Airline Representatives New Zealand (BARNZ), says it reiterates the airlines’ claim that Wellington Airport needs to come under a more effective form of price regulation.

“The airport was deemed by the Commerce Commission to be making excessive profit in a report in February and this confirms it,” Mr Beckett says.

The airport’s full year result shows revenue from Air New Zealand, Qantas Airways and Virgin Australia rose to $62.2 million in the 12 months from $51.7 million the previous year. Net profit for the airport company jumped 81% to $16.2 million from $8.9 million the previous year.

“Airlines have only very thin margins and they have to pass costs like this on,” Mr Beckett says. “Ultimately it is travellers who are being stung by the airport’s excess charges.”

BARNZ says what makes matters worse is this is just the first of another four years of substantial and unjustifiable increases in Wellington’s charges.

Ends

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