Airport takes flak after airlines turn guns south

By DANIEL RIORDAN

Airlines are again protesting at airport landing charges, with Christchurch now in the firing line.

Last week, Christchurch International Airport notified airlines of new charges from January 1.

Unlike Auckland, which from September raised its charges by the same percentage amount across all aircraft, domestic and international (8.5 per cent in the first year and 5 per cent for each of the following two years), Christchurch's new charges are different for each type of aircraft.

Charges are going up for domestic flights and down for international flights.

The net result, says Board of Airline Representatives executive director Stewart Milne, is an increase in total landing charges of up to 5 per cent.

Charges for some of the international aircraft have come down by more than 20 per cent, but Air NZ and Qantas NZ estimate their domestic landing charges bills will rise more than 25 per cent.

The biggest increase is 81 per cent for a Dash 8, which seats 50 people. Charges for smaller aircraft have risen more than for larger ones.

Airlines believe Christchurch has overcharged them between $21.6 million and $69.8 million since it was corporatised a decade ago.

They say the decision to reduce international charges does not go far enough in redressing this.

"We proved they were over-recovering in the domestic area as well, but they've gone and put those up."

Mr Milne says the airport disputes the airlines' claims. Christchurch executives were unavailable for comment.

Christchurch has just spent 15 months consulting airlines under the same legislation Auckland faces.

The dispute with Auckland centres on the airlines' unhappiness at a 50 per cent increase in a revaluation of the airport's assets.

Their Christchurch concern is over the airport including in its calculations $30 million of capital expenditure on its international terminal, which will not be built for six years, says Mr Milne.

He says the terminal is already too big, and including future expenditure in present calculations goes against international practice for airports.

The airlines will be complaining to the Commerce Commission when it begins its inquiry into airfield pricing in February.

Air NZ, on behalf of other airlines, is taking Auckland Airport to the High Court.

The case is expected to to be heard within the next few months.

It was up to Air NZ and Qantas NZ, the domestic airlines most affected by the increased charges, to decide if similar action was warranted against Christchurch, said Mr Milne.

Christchurch airport recorded an after-tax profit of $13.22 million for the year to June 30. Christchurch City Council owns 75 per cent and the Government owns the rest.

Several regional airports are also preparing to raise their landing charges. Wellington, the country's busiest domestic airport, won't look at its rates until 2002.