AUSTRALASIAN airlines have turned their attention to New Zealand as they challenge the power of privatised airports, calling for tougher regulation to constrain costs.
In a submission to New Zealand’s Commerce Commission, the Airlines for Australia & New Zealand lobby group (A4ANZ) has targeted Auckland International Airport for its “excessive profits”, saying the gateway has set prices that are “not in the long-term interests of consumers”.
It follows a similar submission to Australia’s Productivity Commission which is reviewing the powers of privatised airports locally (TD Fri).
The group says earnings at New Zealand airports are excessive and in some cases more than double those of other airports operating in more competitive markets or under tougher regulation overseas.
“Auckland Airport has the second highest margin of all analysed international airports – second only to Sydney Airport, which is also under a light-handed monitoring regime,” said A4ANZ ceo Alison Roberts, citing analysis by Frontier Economics.
She said issues around airport monopolies needed to be addressed and that New Zealand needed “a regulatory environment that encourages innovation and efficiency”.
Source: Travel Australia