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AIA to Increase Charges will be passed on

AIA to Increase Charges will be passed on

Old Jun 6, 12, 11:47 pm
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Join Date: May 2006
Location: Wellington
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AIA to Increase Charges will be passed on

Just saw this and of course NZ will pass the increases on but the 58c decrease for international.....
Also note child and transist exemptions will no longer apply.
Domestic passengers face higher fares flying in and out of Auckland following a boost in the charge to airlines.

Auckland International Airport announced this afternoon that it was increasing the domestic passenger charge on airlines from July 1, adding more than 30 per cent - or $1.32 - per fare to the fees airlines pay the airport. These fees currently stand at $4.23.

As the new charge will be levied directly from airlines, they in turn may chose to recover the cost from passengers.

Air New Zealand said it would face a $65 million increase in charges over the next five years which would have to be passed on to the travelling public.

The national carrier said AIA's new pricing meant its rate of return was above the rate recommended by the Commerce Commission and it awaited the outcome of the watchdog's reviews of both AIA and Wellington International Airport pricing regimes.

Revenue from the domestic passenger charge will go towards development of the planned new domestic terminal which Moutter, who will take over the top job at Telecom in September, said was sorely needed.

This morning he announced two options for the site - either already developed land between the existing domestic and international terminals, or north of the international terminal on ''greenfields'' land.

Increasing domestic capacity was a priority and work on a second runway to the north of the airport would not be considered until ''next decade'', Moutter said.

In the meantime $28 million of modifications will be made to the existing domestic terminal to ease pressure on baggage processing, boarding and disembarking, forecourt, traffic flows, security screening and toilet facilities.

The airport will also cut the exemption on international passenger charges for children aged 2 to 11 years-old, introduce a transit passenger charge, and align both domestic and international landing charges. A terminal services charge will be cut.
Full story on stuff.co.nz
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