BARNZ on Wellington Airport ruling

BARNZ Board of Airline Representatives New Zealand Inc

MEDIA RELEASE

BARNZ welcomes the Commerce Commission draft report that essentially says that Wellington Airport has ignored the Commission’s guidelines on pricing.

The Commission has concluded that Wellington Airport will be earning excessive profits ranging from $21m to $39m over the Commission’s cost of capital range.

These unjustified additional charges represent a tax by Wellington Airport on the travelling public. They represent a drag on the Wellington regional and national economies. They are damaging to Wellington’s tourism aspirations.

The Commerce Commission’s report states that the ‘ineffectiveness [of information disclosure] at limiting excessive profits is of significant concern’.

BARNZ agrees and is very pleased that the Commission has spelled out the damage. We trust that the Government will see the case for the bringing the airport under a firmer regime now that it is so clear that the information disclosure regime does not curtail Wellington’s exercise of its monopoly power.

Airports in New Zealand are free to set prices just as they see fit. Of developed countries, New Zealand has one of the lightest handed regimes for airport pricing. Tightening up on it is long overdue, as Wellington Airport’s behaviour has so clearly demonstrated.

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