Commerce Commission Endorses Christchurch Airport Pricing
Commerce Commission Final Report Endorses Christchurch Airport Pricing
A Commerce Commission report has endorsed Christchurch International Airport’s overall approach to setting its prices.
The just released final report indicates the Commission is comfortable with Christchurch Airport’s current prices and the way the company is targeting stable long-term prices.
Christchurch Airport Chief Executive Malcolm Johns says CIAL supports the Information Disclosure regime and believes the final report demonstrates it is working well. He says the Commission’s process, the first under this new structure, has provided important clarifications and insights into how Christchurch Airport will consider future aeronautical price resets and disclosures.
“We’re pleased our overall pricing approach has been endorsed by the Commission. It has recognised our current pricing is appropriate and reaffirmed we are performing well in areas such as investments, operating efficiency, quality and innovation,” says Mr Johns.
“We have always had a commitment to re-consult on our pricing in 2017 and we’re glad this cornerstone of our long-term price setting regime has been recognised in the Commission’s final report.”
Mr Johns says Christchurch Airport is a significant contributor to the Canterbury and South Island economies.
“Christchurch Airport plays an important role in promoting and sustaining New Zealand’s brand with overseas travellers and tourists. We will continue to balance airlines’ interests with the need to develop international quality facilities and provide fair returns on investment to our Christchurch ratepayer and New Zealand taxpayer shareholders.
“This approach was part of our commitment to our airline customers during consultation and contributed to how we have set our prices. When re-consultation begins, we will take into account at that time the Commission’s position, as well as market conditions.
“As a publicly owned and internationally-acclaimed facility, we are acutely aware of our responsibilities and fully committed to deliver on them,” says Mr Johns.
The Commerce Commission released a draft report on Christchurch Airport’s price setting regime in September 2013. Christchurch Airport responded to the draft report within the specified timeframe.