A file photo of Auckland Airport. Photo: RNZ/Nick Monro
A controversial Commerce Commission decision on how much regulated airports can charge airlines will stand, for now, after the High Court in Auckland dismissed an application for a judicial review.
Air New Zealand, Qantas and the Airlines Association asked the court to set aside a commission decision on regulated airport charges.
At issue was a complex change to the way the commission calculated regulated capital costs at Auckland, Wellington and Christchurch airports.
The case boiled down to complaints about the commission's adjustment for the Covid-19 pandemic, its choice of comparative airports and errors in statistical calculations used in its decision-making process.
While all parties agreed mistakes were made, Justice Radich's decision on how best to correct them was being left to his pending decision on a separate, but related appeal brought by the major airports.
NZ Airports Association chief executive Billie Moore said Auckland Airport initially found the errors and asked the court to undertake a special appeal, known as a Merits Appeal.
"The court has essentially said, look, the best way forward is for us to use the airports' appeal to resolve the issues, rather than the judicial review," Moore said.
The airports asked the commission to use a corrected methodology to calculate regulated costs, while the commission wanted to apply its judgement in coming to a decision.
Board of Airlines Representatives of NZ (BARNZ) executive director Cath O'Brien said airlines opposed the use of a corrected methodology, which would likely result in much higher airport charges.
"So now we wait for the merits appeal. What is that? Well, the commission made mistakes, the airports would like them corrected in a certain way," O'Brien said.
"The airlines certainly don't agree. They agree with the commission, who says it needs to apply its own judgement. And we support that. So we are hopeful that common sense prevails."
The commission said it was unable to comment pending the outcome of the merits appeal, and referred to the court's decision to dismiss the judicial review as "a relatively minor procedural part of the overall case".
Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
