Holding back on fee increases

06 July 2009

Auckland Airport has deferred the effect of the scheduled July 2009 increase in its aeronautical charges.

Previously, international and domestic landing fees were due to increase 2.5% and the Passenger Service Charge (PSC) paid by international passengers was due to rise from $13.00 to $13.50 (GST inclusive) from 1 July 2009, as part of a five year schedule confirmed to airlines in 2007.

Instead, international landing fees will be discounted by approximately 5% and domestic landing fees will be unchanged for the time being. The scheduled increase in the PSC will be implemented as previously confirmed, to avoid complications regarding pre-sold tickets. Assuming like-for-like volumes, the reduced revenue from lower international landing fees will largely offset the higher PSC revenue, so that the overall costs associated with aircraft movements will remain broadly the same as they are currently.

This decision to defer these price increases recognises the current challenging economic conditions for the aviation industry.

The Airport will review its pricing arrangements again in approximately six months time.

Earnings guidance will be provided for FY10 at the results announcement on 28 August 2009.