IATA Urges Revisions to New Zealand’s Airport Economic Regulations

The International Air Transport Association (IATA) has called for immediate changes to New Zealand’s economic regulatory framework for airports. This request follows the New Zealand Commerce Commission’s recent review of Auckland Airport’s pricing structure.

Key Insights:

• Dr. Xie Xingquan, IATA’s ad interim regional vice-president for North Asia and the Asia Pacific, stated, “The Commerce Commission’s findings that Auckland Airport’s charges are excessively high, estimated between NZ$150 million and NZ$226 million, are not unexpected. Although the airport plans to lower its fees over the next two years, the existing regulatory framework is inadequate and requires urgent reform.”
  *Translation: “La constatación de la Comisión de Comercio de que las tarifas del Aeropuerto de Auckland son excesivas, estimadas entre NZ$150 millones y NZ$226 millones, no son inesperadas. Aunque el aeropuerto planea reducir sus tarifas durante los próximos dos años, el marco regulatorio actual es inadecuado y requiere una reforma urgente.”

Concerns Raised:

• IATA highlighted concerns regarding the current light-touch regulatory approach, allowing Auckland Airport unilateral control over aeronautical pricing.
• Being the sole airport provider, Auckland Airport can manipulate pricing strategies to potentially exploit regulatory processes by initially setting high charges and later making adjustments post-regulator’s conclusions, or even ignore the findings altogether.
• Despite Auckland Airport’s significant investments in infrastructure, airlines have expressed worries about investment cost allocation, project timelines, and overall affordability, suggesting past management could have prevented some of these costs.

Additionally, non-aeronautical activities, which typically yield higher returns, fall outside the Commerce Commission’s jurisdiction.

Dr. Xie emphasized, “Aviation contributes 5.6% to New Zealand’s GDP, supporting 177,000 jobs. Effective, demand-driven infrastructure is vital for the continued growth of our aviation sector. The current discussions with Auckland Airport are ineffective and do not prioritize passenger interests—this needs correction.”
*Translation: “La aviación contribuye con un 5,6% al PIB de Nueva Zelanda, apoyando 177,000 empleos. Una infraestructura efectiva y orientada a la demanda es vital para el continuo crecimiento de nuestro sector de la aviación. Las actuales discusiones con el Aeropuerto de Auckland son ineficaces y no priorizan los intereses de los pasajeros; esto necesita corrección.”