Wellington Airport holding charges for 5 years, planning $112m expansion

Press Release – Wellington Airport Limited
Wellington Airport today issued its final pricing document, after the decision to re-price, for using the airport’s terminal and runway services from June 2014 to March 2019. Over the next five years the airport will hold the average price per passenger in line with current charges.

“The collaborative consultation with Air New Zealand, Jetstar, Qantas and Virgin has delivered positive outcomes and will see the airport invest $112M over the next 5 years in the terminal’s expansion and apron development. We believe this is a great package for the airlines and travelling public,” said Steve Sanderson, Wellington Airport’s Chief Executive.

“Wellington Airport is committed to improving travel and tourism infrastructure and is consistently rated among the best in Australasia for service quality.”

Starting in September this year, the airport will commence construction for the extension to the main terminal. This will add 5200sqm of space, double the width of both southern piers and remove the large air handling units that currently take up a significant foot-print in the main terminal.

“In addition to the major extension, we are also going to improve the domestic lounges at the northern end of the terminal, along with introducing washroom facilities at the gates.”

The airport’s targeted return for the coming five year period would remain within the acceptable regulatory benchmark and the process used by the airport to set new prices is consistent with the Commerce Commission’s.

Last year the airport released its 2013 performance results to the Commission and its return on aeronautical assets was 6.23%, well under the regulatory benchmark of 8%. The airport also announced that it would consult with airlines to set new prices for June 2014 to March 2019.

The Commerce Commission’s review of Wellington Airport’s performance noted its current returns were under the acceptable range and this has always been the case. The Commission also recognised the airport’s transparent and consultative approach to price setting, innovation and delivery of a quality passenger experience.”

“Wellington Airport makes a vital contribution to the local and national economy and it is important that the regulatory regime provides incentives to invest and grow tourism and travel infrastructure over the long term.”

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