"New Zealand airport threatens non-payers"

Monday, March 24, 2003

Airport threatens non-payers
By ROELAND VAN DEN BERGH
New Zealand - The Dominion Post


Wellington International Airport is expected to take legal action against
any airlines not paying about $10 million in back-dated service fees.

The airport last month increased fees to airlines by 78 per cent - backdated
to July 1 last year - to ensure it makes a return on its new $116 million
passenger terminal.

Airlines have objected to the increase. Commerce Minister Lianne Dalziel is
due to make a decision on whether to accept a recommendation by the Commerce
Commission for price controls.

The airport's 66 per cent owner, Infratil included the backdated portion of
the service fees in last month's invoices, payable on March 20.

Infratil's Tim Brown said the airport was owed $10 million by airlines. If
the money was not received today "we will take legal action," he said.

It is understood that Qantas has indicated it will pay the increase, but Air
New Zealand looks set to fight it.

Apart from taking the matter to the High Court, Wellington Airport could
also refuse to provide services to any airlines that did not pay or put a
claim over an aircraft, Mr Brown said.

However, neither course of action was likely.

The Board of Airline Representatives labelled the airport an "out of control
monopoly" which disregarded the Commerce Commission report on airport
charges.

The Commerce Commission report recommends price controls for Auckland
International Airport which it considers is making excessive returns.

It said no price controls were warranted for Wellington unless the airport
substantially increased its charges during the review round.

Airlines agreed to an interim increase of 10 per cent and suggested a 20 per
cent increase during the airport's consultation process.