Air New Zealand Launches Legal Action Against Wellington Airport | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

** Airborne 08.27.14 ** HD iPad-Friendly -- Airborne 08.27.14 **
** Airborne 08.25.14 ** HD iPad-Friendly -- Airborne 08.25.14 **
** Airborne 08.22.14 ** HD iPad-Friendly -- Airborne 08.22.14 **

Thu, Aug 16, 2007

Air New Zealand Launches Legal Action Against Wellington Airport

WLG Says It Will "Strongly Defend" New Fee Structure

Air New Zealand has decided to pursue legal action against Wellington International Airport, and a controversial proposed landing fee increase.

John Blair, general counsel for the airline, said Air New Zealand is asking the High Court to review the proposal as its costs are set to increase more than 34 percent over the next five years, according to the New Zealand Newsroom. The airline says the costs aren't justified.

WLG acting CEO Mike Basher says a 2.85 percent increase each year for the next five years comes to about 30 cents per passenger and it's up to the airlines whether or not to pass that cost on to customers.

The airport said its charges are reset every five years; the last change was in 2002. Wellington plans to strongly defend the review proceedings, Basher said.

"The increase in charges is directly related to the cost associated with the airport's $85 million investment in enhanced runway safety and the work that is underway to upgrade the international terminal and aircraft facilities to relieve existing congestion and to cope with forecasted passenger growth," he said.

Wellington International Airport Limited (WIAL) said it consulted "comprehensively and constructively" with all concerned airlines for a full year before setting the new charges.

"The charade of so-called consultation does nothing to constrain airports, which start with extortionate increases and seek to demonstrate an open mind by agreeing to lower, but still unjustifiable, increases. It's the childhood trick of 'If you want a dog, ask for a pony' played with consumers' wallets," Blair said.

"The current review of the Commerce Act is a critical opportunity to establish a regime which introduces commercial reality," he added. "No other country has such a derisory price-setting regime. Airports' monopolistic behavior must not be allowed to continue to choke the economic growth of New Zealand."

"We believe that this was a modest increase in relation to a considerable capital expenditure program," Basher said.

"Wellington Airport is acutely aware of its statutory obligations in setting its landing fees and it is our view that we have undertaken the process thoroughly," he continued. "The regulation of airports in New Zealand has a track record of producing good investment in facilities and prices which are still low on a comparative international basis."

Air New Zealand also requested a Judicial review of Auckland Airport's charges last month.

FMI: www.airnewzealand.com, www.wellington-airport.co.nz

Advertisement

More News

Aero-TV: Doing It Diesel Style -- Glasair's New Diesel Offering

Glasair Makes A Commitment To Alternative Powerplants ANN CEO and Editor-In-Chief, Jim Campbell saw and reported on a lot of interesting things at Sun ‘n Fun 2014, and one of>[...]

AeroSports Update: KR Gathering Planned For Chino, CA

The KR Is The Little Homebuilt Airplane That Sits So Low You Can Almost Step Over It But, In The Sky, It Can Get Up And Go The Official 2014 KR Gathering will be held on Friday Sep>[...]

AD: Viking Air Limited Airplanes

AD NUMBER: 2014-17-01 PRODUCT: Viking Air Limited Model DHC-3 airplanes.>[...]

Prop Wars! MT-Props v Hartzell In War Of Words

Gerd R. Muehlbauer Says 'Competitors' Claims Are Misleading In an open letter to the industry, MT-Propellers president Gerd R. Muehlbauer says that claims made by rival propeller m>[...]

AD: Dassault Aviation Airplanes

AD NUMBER: 2014-16-27 PRODUCT: Certain Dassault Aviation Model FALCON 900EX airplanes.>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2014 Web Development & Design by Pauli Systems, LC