Report on Christchurch Airport’s revised pricing information

Issued 22 May
Release No. 95

Commission releases report on Christchurch Airport’s revised pricing information

The Commerce Commission has today published its observations on Christchurch International Airport Limited’s (CIAL) disclosure of revised pricing information.

Deputy Commissioner Sue Begg welcomed the initiative from CIAL to provide a revised disclosure clarifying its pricing methodology in response to conclusions the Commission had previously reached about the lack of transparency of its approach.

“It is clear that CIAL recognises that improvements in transparency are important to the success of the information disclosure regime. We appreciate CIAL’s efforts and have provided feedback in our report to help facilitate further improvements.”

The Commission has not revised its conclusions that CIAL is targeting an excessive return over the 20 year period it uses in its pricing methodology.

“While we gain some reassurance from the fact that for the current pricing period the returns CIAL targeted are within an acceptable range, we remain concerned it is targeting a rate of return over the longer term that is above the Commission’s estimated range of acceptable returns.” Ms Begg said.

The feedback the Commission receives on this report will inform any changes to the disclosure requirements that are advanced ahead of the next price reset in 2017.

For further information, including a copy of the Commission’s report, see:http://www.comcom.govt.nz/airports-information-disclosure-summary-and-analysis/

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