Wellington Airport runway overhaul welcomed but airlines warn of spiralling costs in NZ

Airlines will be able to operate widebody planes on long-haul routes at Wellington Airport. Photo / Shane Saheem

An airline group has welcomed plans to allow bigger planes to operate longhaul services from Wellington Airport but warns that rising costs are threat for all carriers to this country.

The Board of Airline Representatives said it welcomed international growth to any airport at a time when the recovery from the pandemic had stalled.

“Outside of some growth to Christchurch Airport, international aviation growth has been scarce in recent months. Demand for Auckland Airport is flat for the current season, and there doesn’t seem to be much growth in the future pipeline for our largest airport,” the board’s executive director, Cath O’Brien, said.

Wellington Airport has announced that as part of a $500 million upgrade, a new surface at the ends of the runway will allow aircraft such as Boeing 787 Dreamliners, 777s and Airbus A350s to take off and land.

This would open up the capital to non-stop flights to parts of Asia and flights by airlines using large planes from the Middle East via Australia with no weight constraints.

New Airbus A350s are now available for airlines with specific modifications for Wellington which means they can operate with full passenger loads to and from some Asian hubs.

Pilots are working with the airport on the new plan.

NZ Air Line Pilots Association President Andrew McKeen, also an international 787 pilot, said the organisation was working with the airport company (WIAL) on the installation of an engineered materials arresting system (EMAS), which provides a safety zone without the need to extend the runway.

“We are continuing to work in a collaborative way with WIAL, which is a welcome change to the relationship the parties endured a decade ago,” president McKeen said.

Tourism Industry Aotearoa general manager Greg Thomas said new flights would be welcome.

“Every international flight contributes $1.4 million on average the local economy, so this will be a huge boost for central NZ and will diversify the local economy,” he said.

Enabling long-haul flights for Wellington means direct connectivity between the Pacific Rim and central New Zealand.

“It really opens up the ability to extend and develop new travel paths throughout the country and encourages more visitation to areas that currently under-represented.”

The Travel Agents Association of NZ said the opportunity for direct flights to Asia on wide-bodied aircraft is a game-changer for travellers in the Wellington regio.

‘’We’ve seen time and again that new routes don’t just redistribute existing traffic; they create entirely new travel opportunities. This additional capacity will mean more people travelling, which is a significant win for the aviation industry and much need boost to New Zealand’s economy,” said the association’s chief executive Julie White.

“From an inbound perspective, this is about more than just passengers. It’s about additional export earnings at a time when New Zealand Inc is striving to balance the books. This expansion will inject much-needed support into Wellington’s hospitality, retail, and tourism sectors, while also driving greater dispersal to boost regional tourism across the surrounding areas.‘’

New services would stimulate regional dispersal and boost access to international markets for both passengers and cargo.

‘’It’s an essential step for supporting our exporters and ensuring that Wellington remains a critical player in global trade networks.”No airlines have yet indicated they will start new flights and O’Brien says there are wider challenges luring airlines to this country.

“When we think about international air services to New Zealand, our biggest challenge is cost. Airlines are payers for the vast majority of costs of the civil aviation system – including airports, Air Traffic Control (Airways), CAA and Aviation Security Services, Customs and Biosecurity charges. Many of these prices have increased or are forecast to increase."

Barnz has a long-running issue with Auckland Airport’s redevelopment costs which she said would mean spending $5.9 billion to 2032.

Airways is consulting on replacing the Auckland control tower which could add $77m to costs airlines face.

O’Brien said Civil Aviation Authority and Avsec levies could rise between 66% and 146%.

Beyond these costs which are charged to airlines, visitors to New Zealand are also paying increased costs.

Since October many visitors to New Zealand face increased visa costs, and also pay an increased international visitor levy of $100.

“It is not clear what the tourism portion of the IVL will be spent on, and to date there’s no process for transparency on collection or spend of this levy,” she said.

Barnz increasingly received feedback from its members noting that New Zealand is becoming a much more expensive destination to operate to.

“With all these costs being applied to international (and domestic) airlines, I think significant growth for international air services and tourism will be a real challenge – to Wellington Airport or indeed any other."

Grant Bradley has worked at the Herald since 1993. He is the Business Herald’s deputy editor and covers aviation and tourism.