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

Gareth Morgan: Election Day is Time to Refocus on Policies

19 Sep 2014 Opinion
Gareth Morgan: Election Day is Time to Refocus on Policies Over the course of this election campaign there has been a lot of focus... more

Daily Election Update #12: NZ First to hold balance of power

19 Sep 2014 News
iPredict IPREDICT LTD 2014 NEW ZEALAND ELECTION DAILY UPDATE #12 www.ipredict.co.nz more

Business

NZ consumer confidence edges up in September from 10-month low

19 Sep 2014 Business News By Suze Metherell
Sept. 19 (BusinessDesk) - New Zealand consumer confidence rose in September from a 10-month low, as households adjust to a more... more

Goodman to spend $33.4M on developments, sells Carter Holt Harvey plant in Christchurch

19 Sep 2014 Business News By Suze Metherell
Sept. 19 (BusinessDesk) - Goodman Property Trust, which is selling assets to fund development, will spend $33.4 million on four ... more

Living

Pop superstar Lady Gaga using Shuttlerock's kiwi software

15 Sep 2014 Environment By Fiona Rotherham
Sept. 15 (BusinessDesk) - New Zealand visual marketing software company Shuttlerock has added Lady Gaga to its client list. While... more

German, Kiwi films big winners at Uni Shorts 2014

15 Sep 2014 Entertainment
AUCKLAND: German filmmakers dominated the awards at the third annual Uni Shorts International Student Film Festival held over the... more

Property

Auckland house sales drop in August as winter, election weigh

3 Sep 2014 Property By Paul McBeth
Sept. 3 (BusinessDesk) - Auckland house sales fell for a third month in August and the number of listings remained muted in the... more

House sales down as winter cools market - REINZ

14 Aug 2014 Property
New Zealand house sales fell in July as winter cooled the appetite of house hunters while a drop in properties selling for $400,000... more

Migration

NZ net migration at annual record in August on big inflow

19 Sep 2014 Migration By Suze Metherell
  NZ net migration at annual record in August on big inflow, fewer departures Sept. 19 (BusinessDesk) - New Zealand’s... more

Reserve Bank says migration impact on housing 'muted' so far

11 Sep 2014 Migration By Suze Metherell
Sept. 11 (BusinessDesk) - The Reserve Bank is keenly watching the impact New Zealand's decade-high net migration inflow is having on... more

Travel

Longer Wellington runway worth 2-5 flights daily by 2060

11 Sep 2014 Travel & Tourism By Pattrick Smellie
Sept. 11 (BusinessDesk) - Plans for a $350 million runway extension for Wellington International Airport would provide the capital... more

NZ guest nights rise in July

10 Sep 2014 Travel & Tourism By Suze Metherell
NZ guest nights rise in July on school holidays, record short term visitors   Sept. 10 (BusinessDesk) - New Zealand guest... more

Sport

Prince Harry to be Honorary President of England Rugby 2015

19 Sep 2014 Rugby
Prince Harry Announced as Honorary President of England Rugby 2015 on One Year to Go to Rugby World Cup 2015 With One Year to Go to... more

Silver Ferns Squad & Constellation Cup Team Announced

19 Sep 2014 Netball
Netball New Zealand National Selectors have chosen 19 players in the Silver Ferns Squad for the 2014/2015 international Netball... more

Columns

Gordon Campbell on a campaign that is ending as it began

19 Sep 2014 Opinion
Column - Gordon Campbell   Gordon Campbell on a campaign that is ending as it began This election campaign is getting no less... more

Martin Doyle Cartoon: Election on a fork 'n' knife-edge

19 Sep 2014 Opinion
Opinion - Martin Doyle   Martin Doyle Cartoon: Election on a fork 'n' knife-edge   more

Kiwi Success

Prestigious Awards in Psychology

10 Sep 2014 People
The New Zealand Psychological Society (NZPsS) -the largest membership association for psychologists in New Zealand, offers awards... more

The duo behind NZ's hottest new label

20 Aug 2014 People
We're expecting big things from Harman Grubisa, the new label from Auckland-based friends Madeleine Harman (right) and Jessica... more

Recruitment

Paramedics in NZ jump at opportunity of London career

11 Sep 2014 Recruitment
Paramedics in New Zealand jump at opportunity of a clinical career in London Paramedics hoping for a chance to work for the... more

High dollar, hands-off Govt sends workers to dole queue

22 Aug 2014 Recruitment
The loss of up to 100 jobs at Croxley stationery in Auckland is devastating news for their families and the local Avondale... more