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Backlash over airport deal
TRAVELCONSUMERDAILY.COM PRICE-GOUGING by privately owned airport monopolies, which is rampant in Australia and New Zealand, has come to a head in NZ after Auckland airport bought 25% of Queenstown airport in the country’s southern alps. Queenstown business leaders have demanded that the deal be rescinded because it was done in secret without the local community’s knowledge. And national carrier Air New Zealand today proposed that an alliance of airlines invest in Queenstown airport to prevent Auckland airport interests driving up fares and fees at the local airport. Local lobby the Queenstown Community Strategic Assets Group wants to dismantle the deal and is seeking legal advice. "We want the airport owned 100% by the community as it was, the community being our local council," a spokesman for the group said. "We are currently taking legal advice and we will be acting on that advice. Our advice so far is very strong and we will be taking action," he said. Air New Zealand said in a statement today travellers to and from Queenstown could be spared big hikes in airfares if the local airport broadened its shareholder base by allowing airlines to invest. Air New Zealand group general manager Australasia Bruce Parton says allowing airlines to invest in Queenstown Airport would ensure one of New Zealand’s most important tourism infrastructure assets had the financial strength to grow alongside the rapid rate of capacity being injected by the national carrier as well as Pacific Blue, Qantas and Jetstar. “It would see Queenstown Airport have investors who genuinely understand how to grow tourism into Queenstown by keeping the cost of travel down,” Parton said. “This is in contrast to Auckland International Airport Ltd (AIAL), which has a track record of gouging users like airlines, taxi and rental car companies to the point where they have to put up the cost of travel. “AIAL has displayed significant greed over several years and is adept at fleecing travellers. It would be naïve to think it’s not aiming to increase airline and airport charges which will ultimately increase the cost of travel into and out of Queenstown. “Air New Zealand would be willing to lead a consortium of airlines to take a cornerstone shareholding in Queenstown airport and commit to ensuring the cost of travel stays down. “We would not seek any dividends and ask that these be reinvested into the airport infrastructure to ensure it remains world class and can cope with increased demand due to all airlines offering attractive domestic and trans-Tasman fares.” If a consortium arrangement did not eventuate, Air New Zealand would consider underwriting infrastructure development at Queenstown Airport, as the airline had done in the past. This would allow the community to retain full ownership of the asset. “It is clearly not in the best interests of travellers or Queenstown tourism generally when it is publicly acknowledged that AIAL is an expert at squeezing every last penny from the travelling public,” Mr Parton said. Comment on this article |
