Operators based at the Hawke's Bay Airport say they are still hurting from the Covid-19 pandemic and impact of increased landing and parking fees. Photo / File
Operators based at the Hawke's Bay Airport say they are still hurting from the Covid-19 pandemic and impact of increased landing and parking fees. Photo / File
Hawke's Bay Airport users facing rising costs in tough economic conditions say a 16 per cent pay increase for the airport's chief executive is a "shocker".
The top salary bracket for the position held by Stuart Ainslie has increased significantly in the past three years.
In 2018 the salary paidwas $160,000-$170,000, but that amount was not for a full year's salary.
In 2019 Ainslie was the sole employee in the top salary bracket of $250,000-$260,000.
This year Ainslie was paid $290,000-$300,000 - up a minimum of $40,000 or 16 per cent on the previous year.
Hawke's Bay Airport chief executive Stuart Ainslie has had his salary increase to between $290,000-$300,000 Photo / File
The salary increase was agreed in August last year, before the Covid-19 pandemic and prior to Jetstar announcing plans to exit the region.
Critics of Ainsley's rise include airport operators who are paying more to use the airport after a review led by Ainslie.
However, the chairwoman of Hawke's Bay Airport Ltd says Ainslie's salary has been reviewed and is fair, and he offered to take a pay cut multiple times in 2020 but the board said no.
Air Napier chief executive Shah Aslam said the salary increase was a "shocker" as airport operators had new increased landing and parking fees introduced this year, raising eye brows.
"The question for us is, is the HBAL board doing right by their shareholders – the government, the Napier and Hastings councils and the rate and taxpayers that they all are accountable to?"
With fee increases for operators and their customers, he said it "does beg the question".
He said the industry was still grappling with the effects of lockdown and the price increases had hurt.
Flight care chief executive Craig Hare said there was a significant amount of money going out in wages, describing it as "astronomical money".
He said the aviation industry was in a "world of hurt".
"It would be pretty nice if everyone in the aviation industry could have that.
"A lot of people around this industry would be taking off $40,000 not adding."
He felt the increase should have been reevaluated in light of Covid-19.
HBAL chairwoman Wendie Harvey said Ainslie had offered to take a pay cut during lockdown, "multiple times".
She said the board had seriously considered the impact of salary reductions on its "small, hardworking team" at a time when they were putting everything they had into keeping not only the airport running but continuing the construction of the terminal.
"We made the call that salary cuts just weren't appropriate having regard for the workload and responsibilities of our people over that time.
She said the chief executive role had been independently reviewed and the board was satisfied he was being paid an appropriate rate.
"The former chief executive was replaced by Mr Ainslie in 2018.
"His remuneration reflects his skills and experience within the aviation industry across the world and the growing needs of the company at the time."
"During the time he's been with us, he has performed outstandingly and we have remunerated him accordingly, within appropriate benchmarks."
Ainslie said the 2018 remuneration figure was the amount paid that year for the position, rather than the actual salary in place for the role.
"Sadly, that was the year the previous chief executive passed away.
"In that year, there was approximately five months where HBAL had no chief executive – hence the unusually low payment associated with that role for the year."
Currently the highest salary at the airport is Ainslie's with three other staff above $140,000 but under $170,000.
Both Napier City Council and Hastings District Council, both part shareholders in the company, declined to comment.
