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

 

Review of Auckland and Christchurch Airport prices

Process and issues paper released for review of Auckland and Christchurch Airport prices


The Commerce Commission today released a process and issues paper for its review of the prices Auckland and Christchurch International Airports have set to apply for the period 1 July 2017 to 30 June 2022.

Under Part 4 of the Commerce Act, which regulates markets where there is little or no competition, the airports are subject to information disclosure regulation. While the Commission does not regulate the prices the airports charge, its role is to review airport pricing decisions to promote greater public understanding about their performance.

Commission Deputy Chair Sue Begg said the paper outlines how the Commission intends to approach the review. “Areas we propose to focus on include the reasonableness of the airports' target returns, forecast capital and operating spending, and the efficiency of pricing,” Ms Begg says.

The Commission welcomes submissions on the paper by 28 November 2017 by email to regulation.branch@comcom.govt.nz

The Commission intends to release its draft report for Auckland International Airport in March 2018 and for Christchurch International Airport in May 2018. Interested parties will be invited to submit on both. The final reviews for both airports are expected to be released in August 2018.

The paper and related information can be found here.

Background
Auckland, Christchurch and Wellington International Airports are subject to information disclosure regulation for specified airport services. These services include aircraft, freight, airfield and passenger terminal activities undertaken by the airports. The regulation does not cover other services such as car parks and retail facilities. The aim of this type of regulation is to improve transparency about how regulated businesses are performing in order to influence performance through greater public understanding.

The Commission reviews the airports’ pricing decisions in a summary and analysis capacity. We do not regulate the prices the three airports charge. Airports may set prices as they see fit, but must consult with substantial customers, like airlines, on charges payable and on any major capital expenditure plans.

The Commission’s review of the price setting events for Auckland and Christchurch Airport is the second of its kind for both airports since information disclosure requirements were set under Part 4. The first included a review of the effectiveness of the information disclosure regime and was undertaken in 2013-2014. Information on this review can be found here.

The Commission is expecting to review Wellington International Airport’s price reset in 2019.


ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Manawatu-Whanganui Projects: PGF Top-Up To Rural Broadband Roll-Out

The government has effectively raided the $3 billion Provincial Growth Fund to top up the budget for the second phase of its rural broadband initiative, filling in mobile 'black spots' and ensuring broadband is available to marae that don't have access now. More>>

ALSO:

Other Windy Cities: Auckland-Chicago Named A Top 10 ‘Most Exciting’ New Route

The inclusion of Auckland-Chicago on Lonely Planet’s Where to fly in 2019? The 10 most exciting new flight routes list comes just two weeks before Air New Zealand prepares to celebrate its inaugural flight to Chicago’s O’Hare International Airport on 30 November. More>>

Deadly Strain: ESR Ups Its Reporting On Meningococcal Disease

The increasing number of cases of Group W Meningococcal disease (MenW) has prompted ESR to increase its reporting on the disease to the Ministry of Health. ESR has upped its reporting to weekly. More>>

ALSO:

Very Small Things: "Game-Changing" 3D Printing Technology Launched

New Zealand microfabrication researchers Andrea Bubendorfer and Andrew Best, the co-inventors of a new way of fabricating very small things with Laminated Resin Printing (LRP), are part of Callaghan Innovation’s MicroMaker3D team launching the new patent pending technology in the US this week. More>>

ALSO: