New Zealand Commerce Commission: NZ airports not delivering customers’ needs
A recent report from the New Zealand Commerce Commission points out that the country’s airports are struggling to meet the evolving needs of today’s passengers.
The Commission’s Targeted Review of Airport Regulation highlighted several high-level observations around possible legislative amendments. However, the Commission assures airports throughout the country that it has, so far, rejected all calls to review regulation that requires them to act in the best interests of consumers.
Furthermore, the Commerce Commission’s report has highlighted a timing gap that reduces its ability to influence outcomes before they are locked in, and that the options available to them through a Section 56 inquiry aren’t fit for purpose.
Response from airport and airline executives
Cath O’Brien, executive director of New Zealand’s Board of Airline Representatives, nevertheless lauded the Commission’s report, citing its benefits to both airlines and the passengers whom they serve. O’Brien stated: “This makes sense. Early disclosures about very substantial capital plans allow the commission to make sure these very high cost plans deliver on what they promise Kiwis. This is very similar to what the commission already does for other large scale monopoly investments.”
Auckland Airport CEO Carrie Hurihanganui expressed gratitude for the Commission’s rejection of calls for a formal inquiry into airport regulation. Hurihanganui mentioned, “Auckland Airport owns and operates one of New Zealand’s most strategically important infrastructure sites and we are investing to ensure it delivers for the future. These essential upgrades are creating jobs, boosting resilience, improving the customer experience and adding the capacity our national gateway needs for growth. This investment will benefit all airlines and users of the airport.”
Air New Zealand weighs in
At the same time, senior management at Air New Zealand also welcomed the report, urging all parties involved towards further action to ensure New Zealand’s critical airport infrastructure delivers better outcomes for Kiwi travelers as well as long-term economic growth for the country. Airline CEO Greg Foran stated: “We welcome the Commerce Commission’s report and its recommendations to enable earlier oversight of large airport spending. The report also highlighted significant gaps in how the current oversight regime works and called for targeted changes. These changes may well achieve what we had hoped to accomplish through an inquiry.” Foran explained that airports are critical infrastructure for New Zealand and this is the second time this year that an independent review has found that their investments are not delivering long-term benefits for Kiwi consumers.
