Regional links threatened by Auckland Airport price increases, say carriers

It’s not only passengers who are finding flying increasingly expensive, say Auckland-based airlines. Regional carriers have lent their voices to concerns raised by Air New Zealand that airport redevelopments are pushing operating costs sky-high. On Wednesday, Air NZ called for an urgent inquiry into what it claimed was runaway spending by the country’s largest air transport hub. The cost of Auckland Airport’s $8b 10-year redevelopment plan is being passed on in airport fees and passenger levies likely to increase by more than 400% over that time. The national carrier claimed airport charges were likely to increase from $9 to $46 per passenger by 2032. That would be reflected in the price of air tickets. The Qantas Group, which operates Jetstar and Qantas flights, has also asked for greater scrutiny of airport costs, adding its voice to industry groups like the Board of Airline Representatives New Zealand (Barnz) and its 26 member airlines, which have raised the issue with the Commerce Commission. However, it’s regional airlines which say they are feeling the costs increase most sharply, for not much improvement. Many smaller airlines, which provide the only connections to some regional airports, are concerned about the viability of their businesses. Airlines at Auckland Airport’s regional hub say they have the rough end of the deal and are disproportionately affected by the rising costs. Air Chathams described the proposed fee increases as “extremely challenging”, especially on top of increased rents for its hangars and office spaces.<br/>