Air Chathams is in ongoing negotiations over increased landing charges at Whanganui and Auckland Airport. Photo / Bevan Conley
Air Chathams is in ongoing negotiations over increased landing charges at Whanganui and Auckland Airport. Photo / Bevan Conley
Air Chathams says costs at both the Auckland and Whanganui airports could make travelling too expensive for passengers, as it scrambles to negotiate with the Whanganui District Council over proposed increases to landing charges.
Air Chathams chief operating officer Duane Emeny said that based on its current figures, by 2027the airline would have to find an additional million dollars for the increased costs of operating at both airports.
“The worst case scenario is that Air Chathams withdraws from Whanganui, but the bigger risk is that price escalations are across the board,” Emeny said.
He said price increases from the Auckland and Whanganui airports falling at the same time was “a hard pill to swallow”.
Auckland Airport’s regional charges will increase after July 1, initially from $4.40 to $7.10, then will reach $10.70.
Whanganui Airport is co-owned by the Ministry of Transport and the Whanganui District Council which is currently reviewing its landing charges.
Emeny said airport users had been “disappointed” by negotiations with council so far.
“We’re just not feeling like the leaders within the council are supporting us as well as they could be, which is really disappointing, there’s definitely an awareness around the council table that Air Chathams is really going to struggle with these escalations.”
Emeny said the increases to landing charges were significant and could not be absorbed by the airline alone.
“It becomes a case of what can you realistically pass on to passengers before they decide travelling is too expensive.”
Chief operating officer Duane Emeny says Air Chathams may have to reduce their number of flights because of increased landing charges. Photo / Bevan Conley
He said the airline may have to look at reducing the number of flights or types of planes used, which would impact the quality of the service.
“It’s a lot of money for a very small airline to find.
“We’re still recovering from Covid and it’s not the time to be trying to manage our way through these price escalations.”
Whanganui Mayor Andrew Tripe said the council had undertaken a review of the landing fees and come up with a revised pricing structure, but the increased charges had not been finalised yet.
“I’m looking to sit down with Air Chathams and Air Whanganui and discuss their concerns with them.”
Mayor Andrew Tripe says landing charges had not yet been finalised for Whanganui airport. Photo / Bevan Conley
Tripe said he aimed to find a balance that would reduce the burden of the cost on both council and private enterprise, but it would be difficult.
“If it’s more expensive to fly out of Whanganui, it’s obviously not the ideal situation, but at the same time we’ve also got cost pressures on council and central government to keep the airport going.”
Whanganui Airport chief executive Sarah O’Hagan said landing charges at Whanganui Airport had not changed since 2009 and the latest review that was set to occur in 2019 was put on hold due to Covid.
O’Hagan said the final outcome of the pricing review after consultation with airport users would be approved by the Minister of Transport.
Whanganui District Council chief executive David Langford said the fees council got from the airport did not fully cover its operating costs.
“We want to make sure the fees are fair to airport users but also fair to the ratepayers, who are effectively subsidising the operation of the airport by paying to close the gap that’s left after we’ve collected the fees from users,” Langford said.
Emeny said the “ball was in council’s court” to negotiate with airport users.
“It’s commonplace with regional airports around New Zealand that the district council recognises the role and importance of having those essential links and will work directly with the airline in terms of what is realistic with any price escalations.”
