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Christchurch Airport pricing decisions “reasonable” says Commission

The Commerce Commission has today published its final report on Christchurch International Airport Limited’s 2022 – 2027 price setting event and has concluded that the airport’s estimated cost of capital and target profit are reasonable.

Commissioner Vhari McWha says the Commission is satisfied Christchurch Airport is not targeting excessive profits when setting its landing and passenger charges. These charges can influence the prices for both domestic and international flights in and out of the city.

“Christchurch Airport chose to focus its approach to setting 2022-2027 prices on continuity, predictability and transparency. The Airport is maintaining a simplified per passenger pricing structure but will now only charge for either arrival or departure of transferring passengers, rather than both. This is in line with the practices of overseas airports,” says Ms McWha.

Price setting events usually occur every five years, and this is Christchurch Airport’s fourth since information disclosure regulation was put in place. The consultation papers, submissions and the final paper for this price setting event can be viewed in full on the Commerce Commission’s website.

The Commission expects to release a final report for Auckland Airport’s fourth price setting event later in 2024. Wellington Airport is currently preparing for its fifth price setting event.

 

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