Wellington Airport’s revised pricing - draft report

Commission releases draft analysis of Wellington Airport’s revised pricing

The Commerce Commission has today released its draft report indicating Wellington Airport is now targeting returns for the period from 1 June 2014 to 31 March 2019 that fall within an estimated range of acceptable returns.

Wellington Airport revised its landing fees after the Commission reviewed its performance under section 56G of the Commerce Act in 2013. The review found the airport was targeting excessive profits.

Deputy Commissioner Sue Begg said the Commission’s latest analysis estimates that Wellington Airport has set its prices targeting a return of 8.4%, which is just within the upper limit of an acceptable range of 7.4% to 8.4%.

“We are pleased Wellington Airport re-opened its prices following our review in 2013 and has reduced its charges to target what we estimate will be an acceptable return on its investment,” Ms Begg said.

“The draft report is now open for consultation and we are particularly interested in receiving feedback on our analysis. We will update the Ministers of Transport and Commerce once we have considered any submissions.”

Feedback should be sent by 8 May 2015.

The final report on Wellington Airport’s expected profitability will be released by 30 June 2015.
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