Auckland Airport And Air New Zealand On Terminal Collision Course
Auckland Airport and home customer Air New Zealand are at loggerheads over the cost of the domestic terminal redevelopment. Auckland Airport is planning to commission NZ$3.1 billion ($1.83b) in regulated capital expenditure for the new integrated domestic terminal for the next five years. The airline groups have criticized the cost and scope of the terminal redevelopment, while the airport's biggest customer, Air New Zealand, is not supporting the project in its current form. The new pricing applies to the period between FY23 and FY27, and includes increased capital, plus the rise in interest rates, will see per passenger domestic charges rise by NZ$2.50 ($2) from just under NZ$7 to NZ$10.25 ($6) over the 2024 financial year. By 2027, Auckland will be at a similar level to the current Wellington and Christchurch Airports charges, and the new domestic terminal is planned to open in 2028/29. It will increase passenger processing capacity by 44% per hour and increase domestic seat capacity by 26% with additional gates to cater for large jet aircraft.
Publicerad : 2 år sedan förbi Michael Doran i Travel
Over the next five years, Auckland Airport plans to commission NZ$3.1 billion ($1.83b) in regulated capital expenditure, with around NZ$2.2 billion ($1.3b) paying for the new integrated domestic terminal. It seems that all the stakeholders agree the current terminal is past its use-by date, but the airport's biggest customer, Air New Zealand, is not supporting the project in its current form.
No sign of any compromise
Air New Zealand, Qantas and the Board of Airline Representatives of New Zealand (BARNZ) have strongly criticized the cost and scope of the terminal redevelopment. These groups want the airport to literally go back to the drawing board and come up with a more modest and lower-cost solution, but the airport is not entertaining that idea at all.
Today at the airport's Annual Meeting, Chair Patrick Strange had plenty to say on the issue, including:
The airline groups want a new, integrated terminal, but they know it will be paid for, in part, by increasing the aeronautical, passenger and rent charges they pay for their presence at Auckland Airport. New aeronautical pricing took effect on July 1, 2023, which Strange said was after extensive consultation with airlines and an earlier 12-month price freeze to help them rebuild from the pandemic.
The passenger costs are heading up
The new pricing applies to the period between FY23 and FY27, known as Price Setting Event Four (PSE4), during which the airport is commissioning NZ$3.1 billion in new projects. This increased capital, plus the rise in interest rates, will see per passenger domestic charges rise by NZ$3.50 ($2) from just under NZ$7 to NZ$10.25 ($6) over the 2024 financial year. By 2027, Auckland will be at a similar level to the current Wellington and Christchurch Airports charges.
There is no relief in sight for the airlines as the airport said there will be further changes in the next pricing period from 2028 as new infrastructure is completed. It added that those charges will depend on interest rates at the time and any changes in Commerce Commission methodology.
The most recent changes effective from July are still under review by the Commerce Commission (NZ's competition, consumer and regulatory agency). Strange told the meeting the airport "welcomes this scrutiny."
The new domestic terminal is planned to open in 2028/29, and with built-in facilities for self-service check-in and shorter queue times, it will increase passenger processing capacity by 44% per hour. It will also increase domestic seat capacity by 26% with additional gates to cater for large jet aircraft, and it will be the first time since 1977 that domestic and international travel will be together under the same roof at Auckland Airport.
What do you think about airlines paying for an airport's big plans? Let us know about it in the comments.
Ämnen: Airlines, New Zealand, Air New Zealand