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Home / New Zealand

Airport fees may hit travellers

By Jarrod Booker and Elizabeth Allan
2 Jul, 2007 05:00 PM2 mins to read

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KEY POINTS:

Travellers using Auckland International Airport are likely to pick up the cost of at least one of twin price rises hitting airlines using the facility.

But the airport company says fee changes being introduced will also make the transport hub much more user-friendly to passengers.

The airport announced yesterday it was increasing its landing charges for airlines by 2.5 per cent per annum for the next five years.

The company is also doing away with the $25 departure tax on international passengers in favour of a new charge for airlines.

The carriers will be charged a passenger service charge per traveller. The charge will be split between departing and arriving passengers and it will effectively increase to $28 per person by 2010.

While passengers will no longer have to queue to pay departure tax, the new service charge is expected to be passed on in airfares.

Any overall cost increase to travellers from this is expected to be small.

But airlines must also decide whether to absorb the increased landing charges or pass them on to passengers.

Most airlines were yesterday unwilling to comment on their plans or were still taking in the news.

Air Vanuatu New Zealand manager Richard Elliot said the airline would examine raising airfares. "We're certainly looking to recover as much of the costs as we can, so yes we would be [raising airfares] within the bounds of what competition allows.

"On the New Zealand - Vanuatu route, Air New Zealand fly once a week so we must be mindful of their prices. Certainly if we can put our prices up, we will."

Singapore Airlines general manager Alan Lim was taking a wait and see stance.

"We will have to see what goes and then decide what we'll do."

An Emirates spokesman said the airline had no plans to raise airfares.

Stewart Milne, of the Board of Airline Representatives of New Zealand, said the market was very competitive and any airline that went ahead and raised fares risked losing customers.

"It is fair to say that the margins and profits are pretty skimpy in the aviation business because airlines are trying to attract more people by reducing fares."

Auckland airport chief executive Don Huse said the airport was one of the last in the world where passengers had to pay a departure tax and removing this was a "giant step" forward.

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