Wellington Airport’s excessive profit causing higher airfares, claims AirNZ

Statement from AirNZ
Air New Zealand welcomes today’s Commerce Commission report on Wellington Airport which has confirmed that WIAL earns excessive profit through an unreasonable charging regime. The Commerce Commission estimates that under the current regime Wellington Airport will receive up to $69 million in excess revenue over the next five years.

Air New Zealand Chief Operations Officer Bruce Parton says ordinary New Zealand travellers are shouldering the cost of this excessive profit through higher airfares than would otherwise be necessary.

“That money is coming out of the pockets of Kiwi travellers who are paying higher airfares than would otherwise be necessary.

“Air New Zealand was forced to increase airfares when the current charging regime took effect, and the impact is even greater for travellers to and from provincial New Zealand destinations because the way WIAL has structured its pricing means they are effectively cross subsidising other travellers.

“Air New Zealand is committed to reducing airfares as soon as a more reasonable charging system is implemented.

“Now the report is final, Air New Zealand looks forward to working cooperatively with the Government to help develop a swift and enduring solution to this long-running industry issue.”

 

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