Auckland Airport chief executive Carrie Hurihanganui. Photo: Supplied / Greg Bowker
Major airports are breathing a collective sigh of relief after the Commerce Commission rejected a call to review regulation that requires them to act in the best interests of consumers.
The airports said they were informed the commission would not include the contentious section 56a, or anything else in Part Four of the Commerce Act in upcoming amendments.
Part Four of the act included regulation specific to the major airports in Auckland, Wellington and Christchurch, which effectively operated as monopolies in their markets.
However, the commission intended to proceed with a review of information disclosure requirements for major airport investment over the next year.
The Board of Airline Representatives executive director Cath O'Brien said the commission's targeted review would benefit consumers and airlines.
"This makes sense. Early disclosures about very substantial capital plans allow the commission to make sure these very high cost plans deliver on what they promise Kiwis. This is very similar to what the commission already does for other large scale monopoly investment."
Auckland Airport chief executive Carrie Hurihanganui said the commission's decision to rule out the need for an inquiry into airport regulation, following another request from Air New Zealand, would have lead to greater costs for necessary upgrades.
"We are pleased the commission has rejected calls for a formal inquiry into airport regulation," Hurihanganui said.
"Auckland Airport owns and operates one of New Zealand's most strategically important infrastructure sites and we are investing to ensure it delivers for the future.
"These essential upgrades are creating jobs, boosting resilience, improving the customer experience and adding the capacity our national gateway needs for growth. This investment will benefit all airlines and users of the airport."
NZ Airports Association chief executive Billie Moore said the association would cooperate with the commission's review of information disclosure requirements.
"We're ready to engage in good faith on refinements to information disclosure where they genuinely add value for the travelling public," Moore said.
"Any changes must be practical, proportionate, and based on evidence.
"The current framework already promotes transparency and accountability while giving airports the flexibility to invest for the long term. Refinements should build on those strengths."
While regular price reviews will continue, Moore said the industry has had enough regulatory reviews for the time being, with 15 reviews over the past 12 years.
Air New Zealand said it supported sensible investment, but the level of their investment must be at a scale that both airlines and passengers can afford - not just in a few years, but over the long-term.
"Airports are critical infrastructure for New Zealand and this is the second time this year that an independent review has found that their investments are not delivering long-term benefits for Kiwi consumers," Air New Zealand chief executive Greg Foran said.
"In 2023, Air New Zealand paid Auckland Airport $61 million.
"This year, that's risen to $144m. By 2032, we expect to be paying them $476 million with no effective oversight of how those costs are set before they're locked in."
Foran said New Zealanders ultimately would pay the costs.
"Add in another $248 million in government agency fees and levies and the bill climbs to $724m in 2032. And Auckland is just one of 48 ports we operate from."
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