Air NZ turns guns on airport deal

Air New Zealand says the Commerce Commission should overturn the deal and allow for a proper tender process. Photo / Supplied

Air New Zealand released an aggressive attack on Auckland International Airport's buy-in to Queenstown Airport, calling the deal "shoddy" and saying airlines should be allowed to invest in the airport as well.

The company said the Commerce Commission should overturn the deal and allow for a proper tender process to prevent a "monopolistic position".

Air New Zealand said it would support an official investigation into the sale by either an Ombudsman or the Office of the Auditor General, as was suggested by former Queenstown mayor Warren Cooper.

Air New Zealand domestic airline general manager Bruce Parton said the deal between the airports would be detrimental to tourism in Queenstown as the town would be controlled by the greed of airports.

"It was a shoddy deal done behind closed doors. There are shoddy elements [to this deal]. No one knew they were looking for investment. They should have gone to market."

Parton said AIAL had bought almost a quarter, 24.9 per cent, of the Queenstown Airport for "incredible cheap" $29 million.

"This was without consultation with the council, with the community. AIAL has some of the highest charges in the world. There is less regulatory control, which lands up squeezing every last cent out of the tourist. High rental, high ticket and high taxi prices [at AIAL]."

Air New Zealand wants to form a consortium of other airlines, including Pacific Blue, Qantas and Jetstar, to pay a stake in Queenstown Airport to ensure prices are kept down and that the tourist wins over the airport's shareholders.

"We would not seek any dividends and ask that these be reinvested into the airport infrastructure to ensure it remains world class and can cope with increased demand due to all airlines offering attractive domestic and transtasman fares.

"AIAL has displayed significant greed over several years and is adept at fleecing travellers. It would be naive to think it's not aiming to increase airline and airport charges, which will ultimately increase the cost of travel into and out of Queenstown," Barton said.

He added that to his knowledge, no airlines currently owned a stake in a New Zealand airport.

Board of Airline Representatives (Barnz) spokesman John Beckett said the organisation was concerned about the use of monopoly power that Auckland, Wellington and Christchurch airports had, and any change to this in Queenstown would be a "good thing for the tourist".

But AIAL spokesman Richard Llewellyn said the airport was "bemused" by Air New Zealand's attack, but was not taking their announcement seriously. "We're not taking this seriously. It would be a distraction from the alliance. We are committed to growing tourism in Queenstown," Llewellyn said.

When the deal was signed in July, Auckland International Airport chairman Tony Frankham said that, through the alliance, the country's number-one travel gateway and Queenstown would work more closely together to grow New Zealand tourism.

"This marks a further significant step in Auckland Airports plans to grow travel, trade and tourism between New Zealand and the rest of the world."