Airport landing fees soar

BY MICHAEL BERRY

Blenheim Airport Marlborough is increasing its landing fees 45 per cent, partly to pay for a $3.6 million runway upgrade.

Eagle Airways says the charges are unreasonable and the increase will be passed on to customers, while Blenheim Airport says it has absorbed rising costs for seven years.

Hamilton-based Air New Zealand subsidiary Eagle Airways is the main airline flying to and from Blenheim Airport, using Beech 1900D planes, and had been talking to the airport company about its plans to increase landing fees.

The fees were $60 plus GST for a Beech 1900D. From September 1 they will be $87 plus GST.

This cost will be about $6 a ticket if the 19-seat aeroplane was 75 per cent full. It would mean about a $2 increase for passengers.

Eagle Airways general manager Carrie Hurihanganui said she could not say how much the airlines would put up ticket prices to cover the increased charge.

Ms Hurihanganui accused the airport of profiteering. "We all accept that there are necessary maintenance requirements such as the runway and apron overlay to pay for to sustain our operations," she said.

"However, the way in which Marlborough Airport Ltd is manipulating its position to deliver itself unreasonable and inflated returns and drive up consumer costs, we do have a problem with."

Air New Zealand had worked during the past year to make regional flights about 15 per cent cheaper to increase traffic to provincial towns, but increasing landing fees could reverse that and hit tourism to the region, she said.

"A primary role of Marlborough Airport is to grow the region's tourism and if they are not in a position to stimulate that growth, then what is their function?"

Marlborough Airport chief executive Dean Heiford said the airport had absorbed rising costs including electricity, Civil Aviation Authority charges and other expenses since 2002 and the increase was to a level similar to other regional airports.

The landing fee should have been reviewed in 2007 but this had been put off because of management changes, he said.

The company had to pay for upgrading the runway and apron.

"If we don't get that money [through landing fees] the ratepayer would have to write out a cheque to subsidise the cost of the airport."

Sixty per cent of airport revenue came from landing fees, with the rest from leasing booths in the terminal and car parking.

- The Marlborough Express