Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

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

 

Airlines attempting to confuse the public

MEDIA STATEMENT: NZ AIRPORTS ASSOCIATION

Airlines attempting to confuse the public while ignoring the value of investing in New Zealand’s Airports

The New Zealand Airport Association says false and misleading information about airport regulatory and commercial models is a deliberate ploy by the Australian based airlines lobby group A4ANZ to distract attention away from the value created by investing in critical infrastructure.

Kevin Ward, CEO of NZ Airports says while it is not unusual for airlines and their lobbyists to advocate for lower costs every few years, to see the same playbook of dramatic headlines, half-truths and sincere sounding platitudes rolled out so that the travelling public and New Zealanders miss the bigger picture is disappointing and at worst intentionally misleading.

“For example, Air New Zealand and Australian-based A4ANZ’s claims that Auckland Airport earned excess returns of $3.6 billion over the last twenty years is simply misleading and would not pass any basic evidential test under the NZ regulatory regime.”

“The Airport’s total aeronautical revenues (landing and passenger charges) over that period was approximately $3.2 billion – less than their so-called ‘excess’ – suggesting they want to land for free. Australian-based A4ANZ’s commissioned advice from Frontier Economics in Melbourne doesn’t explain the basis of its analysis, but it is clearly flawed.”

“I also don’t understand the claim that airlines and the public are paying more than they should. Analysis of airport margins in NZ shows that they operate very efficiently and, because of that they pass on lower operating expenses to customers than other airports (e.g. staff costs, consultancy, insurance, energy etc) with most charges going towards covering depreciation costs on infrastructure investment, tax and a closely monitored regulated return on their investment.”

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

Ward also adds that the regulatory regime covering airports in NZ has been in place for over 10 years.

“This has been refined through a series of very detailed reviews by the New Zealand Commerce Commission that places a sharp focus on what’s best for consumers, airlines and airports.”

The focus of New Zealand’s airports is to provide the best and most efficient experience for New Zealanders, international visitors and exporters. Airports in NZ clearly understand they need to play a leading role in investing to support both current and future demand as one of the country’s most critical parts of NZ’s tourism, aviation and trade sectors.

Ward also notes that New Zealand’s airports work closely with airlines to define development plans and that those plans are established in close consultation with airlines taking input on future demand and operational requirements.

Auckland Airport’s long-term investment plan is a good example of an agreed approach where the significant investment in infrastructure has been identified as important and something that airlines and customers have all agreed and advocated for.

“New Zealand airports, are seeing an exponential increase in visitor numbers. Managing this growth and ensuring an efficient service requires significant investment and vision for the future, not the short-term and self-interested approach we have seen from the Australian-based airline lobby group A4ANZ recently.”

ENDS

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Business Headlines | Sci-Tech Headlines

 
GenPro: General Practices Begin Issuing Clause 14 Notices

GenPro has been copied into a rising number of Clause 14 notices issued since the NZNO lodged its Primary Practice Pay Equity Claim against General Practice employers in December 2023.More

SPADA: Screen Industry Unites For Streaming Platform Regulation & Intellectual Property Protections

In an unprecedented international collaboration, representatives of screen producing organisations from around the world have released a joint statement.More

 
 
 
 
 
 
 
 
 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.