Auckland Airport trims 2013 international passenger fees   7 Jun 2012

 

Auckland International Airport, which is targeting Asian arrivals to stoke growth over the next decade, will trim its international passenger fees in the 2013 financial year, while hiking domestic travellers' charges as part of a new pricing schedule.

From the start of July, the country's biggest gateway will cut the average international passenger fee by 58 cents, or 2.8 percent, to $21.55, and lift domestic charges $1.32, or 31 percent, to $5.55, it said in a statement.

As part of its pricing restructure, the airport will drop international terminal service charges, domestic terminal lease charges for passenger processing, and introduce an international transit and transfer charge. Between 2014 and 2017, the airport will increase its annual charge at an annual 2 percent pace to keep in line with inflation.

"This gives us greater alignment with airlines on the risk and reward of passenger volume growth," outgoing chief executive Simon Moutter said. "If we didn't price appropriately, we risk not being able to keep up with growth in passenger numbers or the introduction of larger aircraft, which is absolutely essential for New Zealand's tourism and trade interests."

Last month, the Commerce Commission published a processes and issues paper seeking feedback on pricing at Wellington International Airport as it tests the effectiveness of information disclosure regulation in the airport sector.

The shares rose 0.8 percent to $2.53 in trading today, and have edged up 0.4 percent this year. The stock is rated an average 'hold' based on a consensus of 10 analysts compiled by Reuters with a median target price of $2.60.

The airport expects slightly faster growth in international passenger numbers, which it forecasts to rise to 8.34 million by 2017 from 7.32 million in 2013, while transit numbers would increase to 578,000 from 514,000 over the same period. Domestic passenger numbers are forecast to rise to 7.31 million from 6.44 million.

Including the annual 2 percent increase, that implies that revenue from international passenger fees will rise to $196 million by 2017 from $157.7 million in 2013 and domestic fee revenue will climb to $43.3 million from $35.7 million over the same period.

Aircraft landing charges will increase at a gradual pace over the period with increased volumes forecast implying the airport will attract $98.2 million in fees by 2017 from a forecast $80.1 million in 2013.

Moutter said the hike in domestic charges will go towards expanding capacity at the domestic terminal over the next 18 months to let it cope with bigger aircraft being used on local routes. The airport expects to spend $28 million on the upgrade, which will tide it over for a few extra years while it stitches up a plan for a new domestic terminal.

"The modifications will patch-up the existing domestic terminal for a few more years while we finalise our longer term plans for a new terminal," he said.

Over the five-year period, Auckland Airport flagged $244.9 million in capital expenditure for pricing, excluding a potential northern runway and new terminal.

The new pricing regime is expected to achieve an 8.48 percent return on after tax return on aeronautical investment over the five-year period, and is in line with the regulator's 8.04 percent weighted average cost of capital, the airport said.

(BusinessDesk)

Add a comment

Bookmark and Share

News

Huge experience on transition advisory board

22 Dec 2014 News
New Zealand Government Huge experience on transition advisory board   Canterbury Earthquake Recovery Minister Gerry Brownlee has... more

Top BBC executive publicly endorses key Zionist mantra

22 Dec 2014 News
Article - Redress Information Top BBC executive publicly endorses key Zionist mantra   A senior BBC executive has publicly come... more

Business

MARKET CLOSE: NZ shares rise led by NZOG; Kathmandu slides

22 Dec 2014 Business News
By Suze Metherell Dec. 22 (BusinessDesk) - New Zealand shares rose, led by New Zealand Oil and Gas after it bought a cornerstone... more

PGG Wrightson reaffirms 2015 earnings growth

22 Dec 2014 Business News
By Suze Metherell Dec. 22 (BusinessDesk) - PGG Wrightson, the rural services firm controlled by China's Agria Corp, has affirmed... more

Living

Hobbit defies box office predictions

22 Dec 2014 Entertainment
The Hobbit; The Battle of the Five Armies has topped US$355 million at the international box office after a week on release and a... more

Bringing Ciclovía back to the people of Wellington

20 Dec 2014 Lifestyle
"Let's do this every Sunday!" was the cry from the thousands of participants in this year's inaugural Ciclovía event on the... more

Property

Kiwi Property buys Apex Mega Centre for $64 mln

22 Dec 2014 Property
By Suze Metherell Dec. 22 (BusinessDesk) - Kiwi Property Group, formerly Kiwi Income Property Trust, has agreed to buy Apex Mega... more

Affordable housing development agreement signed

18 Dec 2014 Property
The Government has signed a development agreement for the construction of 237 homes as part of its affordable housing project on an... more

Migration

Overstayer numbers at record low

22 Dec 2014 Migration
Immigration Minister Michael Woodhouse welcomes new figures showing New Zealand overstayer numbers are at the lowest since 2000. A... more

Immigration rises to a fresh annual record

19 Dec 2014 Migration
Immigration rises to a fresh record, fuelled by returning kiwis, Indian students By Suze Metherell Dec. 19 (BusinessDesk) - New... more

Travel

Air New Zealand takes out win on World's Top Ten Airlines

18 Dec 2014 Travel & Tourism
AirlineRatings.com has announced along with its Airline Excellence Awards its Top Ten airlines for 2015. Heading the list is... more

Tourism Holdings lifts annual profit forecast to $17 million

18 Dec 2014 Travel & Tourism
By Suze Metherell Dec. 18 (BusinessDesk) - Tourism Holdings, the biggest campervan rental company in Australia and New Zealand, has... more

Sport

Hart is in the Right Place

22 Dec 2014 Motor Sport
DECEMBER 23, 2014: The motorcycle road-race season is coming together nicely for Bay of Plenty ace Duncan Hart. The 38-year-old ... more

New Zealand Cricket bolsters website capability

22 Dec 2014 Cricket
BLACKCAPS website migrates to Microsoft Azure to manage high fan traffic AUCKLAND, 22 December 2014, New Zealand – Ahead of... more

Columns

Gordon Campbell on the dumping of bad news at Christmas

22 Dec 2014 Opinion
By Gordon Campbell If the government really did have good tidings of great joy you can bet it wouldn’t be strewing them about... more

Gordon Campbell on the Pakistan schoolchildren killings

18 Dec 2014 Column
by Gordon Campbell The slaughter of the children in Pakistan is incomprehensibly awful. On the side, it has thrown a spotlight onto... more

Kiwi Success

DreamCatchers launched in UK

18 Dec 2014 People
In association with Kea, The New Zealand High Commission and The New Zealand Society, Dream Catchers was launched at New Zealand House... more

Inspiring Stories :Young Kiwis Making a Difference

8 Dec 2014 People
Wellington, December 8th – At only 15 years old, Auckland student Hunter Williams is the youngest winner of the Inspiring... more

Recruitment

Better work opportunities for disabled people

22 Dec 2014 Recruitment
Minister for Disability Issues Nicky Wagner welcomed the release of the ‘Disability and the labour market’ report from ... more

Job ads trending down, says ANZ survey

19 Dec 2014 Recruitment
By Fiona Rotherham Total job advertising has taken an end-of-year dip, falling 0.1 per cent in November after seasonal adjustments,... more