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

 


Complaints about Chch Airport’s monopoly pricing vindicated

13 February 2014

Airlines’ complaints about Christchurch Airport’s monopoly pricing vindicated

Airport companies need to be subjected to firmer price regulation says the Board of Airline Representatives New Zealand (BARNZ) chief executive John Beckett.

“The final report on Christchurch Airport’s pricing plans by the Commerce Commission proves it,” he says. “The present regime is too light-handed and leaves the airports free to charge excessively when it pleases them.”

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

The report says the Commission’s overall impression is that “information disclosure regulation has had little influence over Christchurch Airport’s behaviour”.

“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”.

”The Commission has already concluded that Wellington Airport is pricing excessively and that Auckland Airport has set charges that, while not excessive, were still above a normal return” Mr Beckett says.

“The latest finding 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.”

In December the High Court confirmed the Commission’s method for setting airport prices. Mr Beckett says this means that, with the completion of the Christchurch Airport report, the issue of airport pricing is now in the Government’s basket.

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

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>>

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