Airports provide top value

THURSDAY, JULY 26, 2018

“Kiwis pay no more than $12 per domestic passenger to travel through one of our biggest three airports,” says Kevin Ward, Chief Executive of the New Zealand Airports Association, appearing before the Transport and Infrastructure Select Committee on the Commerce Amendment Bill.

“Airport charges are just a small part of the total cost of a plane ticket. Charges per domestic passenger range from $6 to $12 at New Zealand’s three biggest airports, Auckland, Christchurch and Wellington. That pays for all the infrastructure such as runways, taxiways, terminals and airbridges,” says Mr Ward.

“Independent international surveys show airport charges per passenger at New Zealand airports are below average.

“Airlines have been pressing for reduced airport charges at Auckland, Wellington and Christchurch. Let’s say the already low airport charges are reduced by $1. That won’t result in lower airfares, it simply puts the dollar in the pocket of the airline. Travellers are worse off because the airport’s ability to provide high quality facilities and services is significantly knocked.

“Airports are critical infrastructure. It is vital that airports are able to make investments to sustainably grow capacity. This gives New Zealanders more options for air travel and is crucial for growing tourism and other export industries.

“Airports have made, or are making, significant investments into terminal facilities to provide quality service to travellers and economic benefits for our regions.

“Christchurch has undergone a significant rebuild, and Auckland and Wellington re-developments are underway. These huge infrastructure programmes total billions of dollars of expenditure and are driven by unprecedented demand growth. That investment directly supports local businesses and jobs – and it comes with no ratepayer or taxpayer funding.

“Throughout this rebuild, service quality has not only remained high but has increased as shown through independent customer satisfaction surveys required by the Commerce Commission.

“As the welcoming gateways to New Zealand and its regions, airports are crucial infrastructure supporting national and regional economic growth. Airport-related activities add $6.5 billion a year to the economy and 80,000 jobs to New Zealand and the regions.

“Auckland, Christchurch and Wellington airports have significant local council ownership, protecting local interests and returning over $430 million back to local communities over the last five years.”

ENDS

© Scoop Media