The country’s largest gateway is replacing its 60-year-old domestic jet terminal. Is it an infrastructure play or a real economic boost?
Auckland Airport’s $6.6 billion infrastructure upgrade, which includes a new domestic jet terminal, will increase its positive economic impact to $50b by 2032.
It contributed $35b today through tourism and trade, according to its chief executive Carrie Hurihanganui.
“Auckland Airport is kind of this value engine,” she told Markets withMadison.
“So we have to be fit for purpose.
“You need the right infrastructure to enable growth.”
Auckland Airport's current project includes spending about $2 billion on a new domestic jet terminal.
The project included building a 240-metre long pier with 12 domestic gates, adding 26% more domestic capacity and 44% more aviation security processing space.
But the spend had been criticised by airlines who warned it would impact tourism demand with passengers paying for the cost of the upgrade through higher landing and take-off fees in future years.
Hurihanganui said the stoush with airlines was a “long-standing tension point”.
“Domestic jet charges make up 4-6% of an airline ticket.
“And listen I get it, nobody wants charges to go up, it doesn’t matter what your business is.
“But at the same time, you have to have the ability to grow New Zealand.”
Go behind the scenes of the airport’s major construction project, including a sneak peek of the new domestic terminal, in today’s episode of Markets with Madison above.
Markets with Madison (left) behind the scenes of Auckland Airport's $6 billion-plus infrastructure upgrade with chief executive Carrie Hurihanganui (right).
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Disclaimer: The information provided in this programme is of a general nature, and is not intended to be personalised financial advice. We encourage you to seek appropriate advice from a qualified professional to suit your individual circumstances.
Madison Reidy is host and executive producer of the NZ Herald’s investment show Markets with Madison. She joined the Herald in 2022 after working in investment, and has covered business and economics for television and radio broadcasters.
