Airports profits dampened by Commerce Commission Report
Though the Wellington International Airport has seen an underlying six-month operating profit of $42.5 million, which is up almost 8 per cent yet the shadow of the Commerce Commission report made public earlier this year hangs over the airport.
It mentioned that for things including aircraft landing fees the air ports earning would be between $38m and $69m more from consumers between 2012 and 2017 than it needed, to make a "reasonable" return.
It said, for the airport a realistic return would be between 7.1 and 8 per cent a year but that the airport's prices would bring returns of between 12.3 and 15.2 per cent annually over the five years.
The findings where however challenged by the Wellington Airport. It said its return on aeronautical assets was 6.23 per cent for the 2013 financial year, less than the 8 per cent watershed.
The airport has already started discussion with airlines over fees to use the airport's terminal and runway services from mid-2014 to ensure prices to be charged in future. Prices which will be charged for 2014-15, are also in accordance with the commission's acceptable range.
The airport which is co-owned by Infratil and Wellington City Council, was earlier cautioned by the Commerce Commission report about boosting its profits through overcharging
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