Auckland Airport trims 2013 international passenger fees 7 Jun 2012
- Growth in global milk pool 'unusual,' says Spierings Business
- Tenon to supply Masters Home Improvement stores in Australia Business
- MARKET CLOSE: NZ stocks fall led by Telecom; Fonterra gains Business
- NZ dollar drops after Fonterra cuts forecast payout Business
- Fonterra slashes 2015 milk payout forecast to $6/kgMS Business
- Pumpkin Patch founder Sally Synnott leaves board Business
- Leighton-led WGP to build, manage Transmission Gully Business
- NZ leaves lasting impression on English Premier League teams Travel
- Transmission Gully by 2020 great news News
- Werewolf Edition #49: Laila Harre, The Internet and Mana News
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.
29 Jul 2014 Politics
Internet Party Harré: It’s Game on in Helensville Internet Party Leader Laila Harré will stand in John... more
28 Jul 2014 Business News
Customs Minister Nicky Wagner today welcomed the Joint Border Management System reaching another milestone. More than 50 per cent ... more
25 Jul 2014 Business News
Article - BusinessDesk Auckland Airport cuts fine deal in US$250M bond issue By Paul McBeth Jul. 25 (BusinessDesk) - Auckland... more
28 Jul 2014 Lifestyle
The new-look Mana magazine includes a story on Hollywood star and Rotorua local, Cliff Curtis. The famously versatile actor talks... more
23 Jul 2014 Entertainment
New Zealand Film Commission New Zealand Film 'The Dead Lands' to Have Toronto World Premiere Maori action epic The Dead Lands will... more
14 Jul 2014 Property
July 14 (BusinessDesk) - New Zealand house sales fell in June from a year earlier, led by properties of $400,000 or less, indicating... more
11 Jul 2014 Migration
If you’re in the UK on a Tier 1 (General) visa, you’ll need to apply for an extension as soon as possible. The deadline... more
29 Jul 2014 Travel & Tourism
27 Jul 2014 West Ham United may have endured a torrid time on the pitch during their time in New Zealand for the Football United... more
29 Jul 2014 Commonwealth Games
TUESDAY 29 JULY 2014 New Zealand had another memorable day at the Commonwealth Games, with gold medals to weightlifter Richie... more
24 Jul 2014 Opinion
One of the selling points in New Zealand’s campaign for a temporary seat on the Security Council is that we have a pluckily... more
23 Jul 2014 Appointments
New Zealand Government Appointments to Public Trust Board Justice Minister Judith Collins today announced the appointment of ... more
23 Jul 2014 Appointments
Commerce Minister Craig Foss today announced four reappointments to various independent Crown entities and statutory... more
14 Jul 2014 Recruitment
New Zealand Government Hon Steven Joyce Minister for Tertiary Education, Skills and Employment Hon Hekia Parata Minister of... more