MARY SHANAHAN
Hawke's Bay Airport is threatening to take Air Nelson to court to force the airline to pay increased landing charges. Airport manager Nigel Sutton told the Napier City Council yesterday that Air Nelson's position on not paying the new charges was "pretty rigid".
Mr Sutton said that because the airport
was a joint venture, involving the Hastings District Council, the Napier City Council and the Government, the board was unable to set landing charges itself.
Instead it had had followed the methodology and consultation process recommended by accountants Ernst & Young in arriving at the increased charges. Air Nelson had done all the consultation for the Air New Zealand group but it was the only airline refusing to accept the new charging regime.
Reporting to the council's corporate services committee, Mr Sutton said Air Nelson was "a major customer" for the airport.
It had recently introduced the first new Dash 8 Q300 aircraft which will replace the airline's entire Saab 340A fleet by mid-2007.
However, that was part of the problem. The new aircraft seated 50 passengers, compared to the Saab's 33, and landing charges were based on seat numbers, Mr Sutton said.
At Air Nelson's request, the Ministry of Transport was reviewing the new charges, and the authority expected its report any time now.
The Q300s had started operating in Hawke's Bay on August 15, so there had been relatively few landings to date. The airline had been invoiced but so far had not paid.
"I suspect we may have to take Air Nelson to court for non-payment. We believe we have got a very sound case," he said.
