Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Airlines’ complaints about Chch Airport’s pricing vindicated

Media Release 15 October 2013

Airlines’ complaints about Christchurch Airport’s monopoly pricing vindicated

The Commerce Commission has released its review of the pricing path Christchurch Airport put in place in October last year.

In that report the Commission says that information disclosure has not been effective in limiting expected excessive profits over the 20 year pricing period on which prices are based.

The Commission stated that its ‘overall impression is that information disclosure regulation has had minimal influence over Christchurch Airport’s behaviour’.

The Commission commented that ‘although the regime has only been in place a short time, we would have expected evidence that Christchurch Airport has had direct regard to it…. We do not have that evidence’.

John Beckett, the executive director of the Board of Airline Representatives New Zealand (BARNZ) says “the Commission’s report further demonstrates that a firmer form of price regulation is needed in New Zealand. The present regime is too light handed and leaves the airports free to charge excessively.”

Mr Beckett said that “the Commission has already concluded that Wellington Airport is pricing excessively and that Auckland Airport has set charges so as to earn above a normal return, albeit not excessive. The finding released today by the Commission that Christchurch Airport is targeting excessive profits over its 20 year pricing path shows that airports need to be subject to a stronger form of oversight than just information disclosure.”

Mr Beckett says BARNZ will reiterate its call to Government for it to apply the negotiate/arbitrate regime to airport pricing in New Zealand to bring it into line with good international practice.

About BARNZ:

The Board of Airline Representatives New Zealand Inc (BARNZ) is an incorporated society representing the interests of its member airlines, which operate scheduled international and domestic services. Its members are:

Air Calin Air New Zealand (Group) Air Pacific

Airwork Air Tahiti Nui Air Vanuatu

Cathay Pacific Airways China Airlines China Southern

Emirates EVA Airways Fieldair

Korean Air LAN Airlines Malaysia Airlines

Menzies Aviation (NZ) Virgin Australia Qantas Airways (incl Jetstar)

Singapore Airlines Tasman Cargo Airlines Thai Airways International

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Maritime: Navigation Safety Review Raises Big Issues For The Govt

Shipping Federation: "The reports makes it clear that the ratification of the Maritime Labour convention (MLC) is long overdue. Only when the MLC is ratified will Maritime NZ be able to inspect and enforce the labour conditions on international ships visiting our ports." More>>

ALSO:

100 Years After Einstein Prediction: Gravitational Waves Found

For the first time, scientists have observed ripples in the fabric of spacetime called gravitational waves, arriving at the earth from a cataclysmic event in the distant universe. This confirms a major prediction of Albert Einstein’s 1915 general theory of relativity and opens an unprecedented new window onto the cosmos. More>>

ALSO:

Farming: Alliance Plans To Start Docking Farmer Payments

Alliance Group, New Zealand's second-largest meat cooperative, plans to start withholding some stock payments to its farmers from next week to bolster its balance sheet and force suppliers to meet their share requirements. More>>

ALSO:

Gambling: SkyCity First Half Profit Rises 30%, Helped By High Rollers

SkyCity anticipates the Auckland business will benefit from government gaming concessions which were triggered on Nov. 11 in recognition of SkyCity’s $470 million Convention Centre development. Morrison said the concessions would allow the Auckland business to lift its activity during peak period, noting it had a record revenue week over the Christmas and New Year period. More>>

ALSO:

Money For Light: Kiwi Scientists Secure Preferential Access To Synchrotron

Science and Innovation Minister Steven Joyce today announced a three-year investment of $2.8 million in the Australian Synchrotron, the largest piece of scientific infrastructure in the Southern Hemisphere, to secure preferential access for Kiwi scientists. More>>

Telco Industry Report: Investment Hits $1.7 Bln A Year

Investment in the telecommunications sector is $1.7 billion a year, proportionately one of the highest levels in the OECD, according to a report released today on the status of the New Zealand sector. More>>

ALSO:

PGPs: New Programme Sets Sights On Strong Wool

A new collaboration between The New Zealand Merino Company (NZM) and the Ministry for Primary Industries (MPI), announced today, aims to deliver premiums for New Zealand's strong wool sector... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news