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

 

Auckland Airport defends $1.8B spending programme

Auckland Airport defends $1.8B spending programme as striking 'fair balance'

By Paul McBeth

Oct. 26 (BusinessDesk) - Auckland International Airport has talked up the "fair balance" it struck in setting out a $1.8 billion infrastructure spending programme which chief executive Adrian Littlewood says is probably the most significant since its original development in the 1960s.

The $1.8 billion investment in aeronautical infrastructure over the next five years came after a long period where airlines and the wider community were consulted on the airport's future needs and what its operations and pricing priorities should be, Littlewood told shareholders at today's annual meeting in Manukau. Over that period the airport will cut the average annual international passenger charge by 1.7 percent and hike the equivalent domestic fee by 0.8 percent to help fund three more contact gates for international aircraft, a new domestic jet terminal, expanded border processing area and public arrivals space, and upgrades to international check-in.

"It is a responsibility to our customers we treat with care, but we are also balancing many other expectations - including those of you, our shareholders, looking for a fair return on a major investment programme," Littlewood said in speech notes published on the stock exchange. "We believe we have struck a fair balance in our investment and pricing decisions for the next five years."

The programme has already been criticised by the airlines' umbrella group - the Board of Airlines Representatives - as only benefiting airport shareholders, something Littlewood has previously played down. More recently the Commerce Commission said it will have a look under the hood of the proposed spending in its semi-regular investigation into how the airport sets its prices to ensure it isn't rorting customers.

Littlewood said the airport was "clearly conscious" of passengers and airlines when setting the programme, and reiterated that in the next five years it will take "significant steps" toward opening a second runway with earthworks scheduled to start in 2020 or 2021.

"It is critical that we maintain a very strong focus on providing the best customer experience that we can during what has been and continues to be a time of significant change," he said.

Chair Henry van der Heyden told shareholders the board tightened oversight of aeronautical pricing during the 2017 financial year, setting up an ad-hoc sub-committee to provide governance oversight over the plan and price changes in 2018-to-2022.

"Our modest price changes for that period and our $2 billion infrastructure investment plan will deliver significant benefits for passengers," van der Heyden said. "The new pricing and capital expenditure programme balances the needs of passengers, the airport community, the tourism community, our investors and the airlines."

Auckland Airport shares increased 0.4 percent to $6.35 and have edged up 1.2 percent so far this year, lagging behind an 18 percent gain in the benchmark S&P/NZX 50 index.

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 


Westpac NZ: Warns About Sophisticated New Scam
Westpac NZ is warning New Zealanders about a sophisticated new scam that involves a fake Westpac investment prospectus.
The prospectus is formatted to resemble a Westpac document and includes professional-looking imagery... More>>



Campaign For NZ Coastal Tankers : Says Fuel Security At Risk

Three unions representing New Zealand shipping crews are mounting a united campaign to protect New Zealand’s fuel security and save New Zealand coastal tankers... More>>



Tourism: Travel Bubble With Cook Islands Resumes

Cook Islands tourism restarts today, ending a five-month border closure due to COVID-19. Graeme West, General Manager Australasia for Cook Islands Tourism Corporation, said today’s first flight of quarantine-free travel from New Zealand to the Cook Islands is very significant... More>>


Insurance Council of New Zealand: September South Island Windstorm Cost $36.5 M Raises 2021 Extreme Weather Claims Total To $321.6 M

Gale force winds and storms between 9 and 13 September 2021 resulted in insurers supporting communities to the tune of $36.5 m. This is a significant rise, of $16.7 m, on preliminary figures for the event and lifts the end of year total for all extreme weather events in 2021 to $321.6 m... More>>


Statistics: Building Consents Hit New Highs In November
There were a record 48,522 new homes consented in the year ended November 2021, Stats NZ said today. This was up 26 percent compared with the year ended November 2020... More>>

Fonterra: Revises Milk Collection Forecast
Fonterra Co-operative Group Limited today revised the forecast for its 2021/22 New Zealand milk collections to 1,500 million kilograms of milk solids (kgMS), down from its opening forecast of 1,525 million kgMS... More>>