Commerce Commission approves aeronautical charges at Wellington Airport

New Zealand’s Commerce Commission has released a detailed report on aeronautical charges at Wellington Airport confirming they are within an acceptable range.

The commission also reported the approach used for aeronautical pricing was consistent with the Commission’s recommendations and the information disclosure regulation was working well.

Aeronautical charges were decided upon by a consultation process with airlines in 2014. The price was determined by usage of the Airport’s terminal and runway services from June 2014 to March 2019. From this, the airport will now hold the average price per passenger over a five year period.

Steve Sanderson, Wellington Airport Chief Executive, commented on the report: “We welcome the Commission’s findings and comments that the Airports re-pricing is within the acceptable range. The collaborative consultation with airlines and feedback from the Commission last year has delivered positive outcomes and will see the airport invest $110M over the next 5 years in the Main Terminal expansion and apron development and a further $140M on commercial developments including a Hotel, Multi-Level Carpark and Retail Park.”

The airport is proceeding with plans to extend the main terminal building by 5200sqm which will double the width of both southern piers and remove the large air handling units that currently take up a significant foot-print in the main terminal.

The Commerce Commission’s previous reviews of Wellington Airport’s performance noted its current returns were within the acceptable range, but did have concerns about potential returns in the future.