Media Release
27 July 2007

Air New Zealand Seeks Judicial Review Over Airport Charges

Air New Zealand is seeking a Judicial Review of recent charges imposed by Auckland International Airport Limited (AIAL).

The airline confirmed that it had today filed proceedings with the High Court in Auckland.

General Counsel John Blair says Air New Zealand will challenge the approach taken by AIAL.

“This does not mean abusing its position as a monopoly to effectively levy taxes at will on airlines and the travelling public."

Air New Zealand says the demanded landing fee increases of 13% over five years will add millions of dollars of cost to travellers, for no benefit. They are contrary to any normal commercial outcome where relatively fixed costs are spread over continually increasing passenger numbers.

“AIAL has again approached its setting of charges with the clear intention of increasing them, and failed to give any proper consideration to lowering charges despite benefiting from substantial passenger growth over the past five years,” says Mr Blair.

Air New Zealand is also challenging AIAL’s decision to replace the Airport Development Charge with a new charge to be levied on airlines. In its submission on the MED’s Review of the Commerce Act, the airline has called for the charge to be scrapped.

“The ADC is unnecessary and unjustified - it is payable simply for walking through the airport terminal. There is no evidence of the $60 million collected annually being applied to airport development.”

Mr Blair says Air New Zealand regrets having to take the matter to the High Court, but feels it has little other recourse under the current regulatory regime.

“The current review of the Commerce Act is a critical opportunity to establish a regime which introduces commercial reality. Airports’ monopolistic behaviour must not be allowed to continue to choke the economic growth of New Zealand.”

ENDS

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