Auckland Airport to review NZ ComCom report on airport's aeronautical pricing

Auckland International Airport received (01-Nov-2018) the New Zealand Commerce Commission's (ComCom) final report on the airport's aeronautical pricing for the FY2018 to 2022 period. The airport now plans to review the document in detail. Details include:

• ComCom's report is the result of a 12 month review into the reasonableness of Auckland Airport's targeted returns, forecast capital and operating spend and pricing efficiency;
• The report recognises the airport is investing heavily in new infrastructure in response to growth and that planned and actual investment is occurring at an appropriate time;
• While ComCom has not confirmed it is comfortable with the full extent of the airport's targeted return, the report does conclude that Auckland Airport has provided evidence that an appropriate return may be above the ComCom's industry wide benchmark due to the size and risks associated with Auckland Airport's investment programme;
• Charges over FY2018-2022 contribute to the running of the airport and key infrastructure projects, including the international terminal expansion and rejuvenation of the existing domestic terminal.

Auckland Airport CFO Phil Neutze commented: "We took an Auckland Airport-specific approach to setting our prices given the unprecedented size of our investment plan over the next five years. Airport pricing is complex and we have provided comprehensive evidence to the Commission explaining why we believe our approach is fair and reasonable. We will need to carefully review how the Commission has assessed that evidence in its final report and how this shaped its findings". [more - original PR]