Auckland Airport trims 2013 international passenger fees 7 Jun 2012
- NZ export log prices rise, domestic market strong Business
- Cyclists Gearing Up for Anniversary Celebrations Sport
- Evolve lifts 1H profit 11% Business
- James Hardie class action begins in Auckland Business
- NZ retail sales rise 0.9% in third quarter Business
- Blis Technologies posts positive first-half earnings Business
- Vital Healthcare pays A$24M for Melbourne medical centre Business
- Whakatu Arterial Link underway News
- Metro Glass lifts 1H profit 5% on strong local construction Business
- Restaurant Brands raises $94 million for Hawaiian business Business
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.
5 Dec 2016 Politics
8:47 pm 5... more
21 Nov 2016 Business News
Article - BusinessDesk Monday 21 November 2016 08:50 AM Key crowns APEC summit with China free-trade upgrade By Pattrick Smellie in ... more
21 Nov 2016 Lifestyle
Emirates Team New Zealand EMIRATES TEAM NEW ZEALAND CLOSES IN 3rd POSITION THE LOUIS VUITTON AMERICA’S CUP WORLD SERIES
14 Nov 2016 Property
Article - BusinessDesk Monday 14 November 2016 10:28 AM NZ house prices gain 11% in October, driven by sales of higher value homes By... more
11 Nov 2016 Property
Article - BusinessDesk Thursday 10 November 2016 04:04 PM RBNZ sees pressures building in Auckland construction sector By Paul ... more
1 Nov 2016 Migration
New Zealand Government Hon Paul GoldsmithMinister of Commerce and Consumer Affairs 1 November 2016 Changes to Financial Markets... more
2 Dec 2016 Travel & Tourism
Air New Zealand has paired up with singer Ronan Keating and rising Kiwi actor Julian Dennison to rejig a Christmas classic. 'Summer... more
3 Dec 2016 Rugby
3 Dec 2016 Rugby
New Zealand's women claim top prize in DubaiAustralia and New Zealand played out yet another thrilling final in Dubai as the Black... more
11 Nov 2016 Opinion
Column - Gordon Campbell Gordon Campbell on the Gareth Morgan crusade First published on Werewolf more
10 Nov 2016 Opinion
Column - Gordon Campbell Gordon Campbell on the US election outcome more
11 Nov 2016 Appointments
New Zealand Government Hon Christopher FinlaysonAttorney-General 11 November 2016 Acting District Court Judge appointed Wellington... more
2 Nov 2016 Recruitment
Article - BusinessDesk Tuesday 01 November 2016 04:42 PM Fisher Funds hunts for new head to replace founder Carmel Fisher By Paul ... more