New Zealand: Airlines go into battle with Auckland Airport

Airlines say Auckland Airport should stop using them and passengers as a bank and instead start using shareholder dividends for its $1.8b building programme. The Board of Airline Representatives said the airport was undertaking the biggest building programme in its history, yet shareholders were not being asked to make any contribution by forgoing dividends. The Commerce Commission Thursday has highlighted pricing for airlines and says it is concerned the airport is planning to make excessive profits on its regulated assets. For the five-year period to June 30, 2022, the airport is targeting a return on its regulated asset base of 7.06% against the commission's mid-point benchmark of 6.41%. "This difference in target returns could result in customers paying an additional 61 cents per flight over the next five years, or put another way - Auckland Airport earning an additional $47m in profits after tax," said the commission's deputy chair, Sue Begg.<br/>