Auckland Airport is freezing planned aeronautical charges for the next financial year to support airlines during the early phase of the anticipated Covid-19 recovery.
Auckland Airport (file image). Photo: 123RF
The airport company said the 12-month delay affected the price setting event 4 (PSE4), which covered aeronautical prices for the 5-year period from the 2023 to the 2027 financial years.
Auckland Airport chief financial officer Phil Neutze said the vast majority of airlines operating at Auckland Airport, including those represented by the Board of Airline Representatives were in favour of the plan.
"This has been an extremely challenging time for everyone in aviation, and Auckland Airport is working hard to support our airline partners while the recovery trajectory remains highly uncertain," he said.
The price freeze followed consultation with airlines on the timing of the first price reset for PSE4, which would usually be effective from 1 July 2022.
The airport said the 2023 prices would be held at 2022 levels, with a possible extension in line with ongoing uncertainty.
Prices from the 2024 financial year were subject to another round of consultation with airlines during the 2023 financial year and would be based on forecast passenger volumes, as well as Auckland Airport's target for the return on aeronautical capital for the full 5-year PSE4 pricing period.
Neutze said the only potential change to aeronautical prices in the 2023 financial year would be an adjustment to the current $2 plus GST charge per international and transit passenger, which applied from 1 October 2021 to 30 June 2022.
That fee was set under the Regulatory and Requested (RRI) Policy, designed to recover the costs of enabling quarantine free travel at the international terminal.
Auckland Airport would consult with airlines prior to 30 June on the costs and revenues collected under the RRI, with a view to making any necessary changes for the financial year ending June 2023, Neutze said.