Air Chathams has this morning hit out at Auckland Airport's fees for airlines, warning customers could ultimately feel the effects and key regional connections could be impacted.
But Auckland Airport has clapped back, rejecting the suggestion their changes will make travel unaffordable and arguing the carrier is opposing the investment to protect its margins.
The airline said the airport's prices are "skyrocketing". Passing on the costs to passengers would see fewer people fly, the airline said, adding that could lead to fewer services, "tough times and tough decisions".
"The increases we've already seen in this price period are extremely challenging," Air Chathams' chief operating officer Duane Emeny said in a statement today.
"We're very concerned about the effect of even higher prices on the future viability of our family business."
And "what's really tough" is that the airline doesn't particularly benefit from the increase, Emeny added.
"Regional airlines like Air Chathams and Barrier Air will use very little of what the airport company is building," he said. "We are all the way down the end of ageing domestic terminal, and this building will be almost unchanged in this price period.
"At best, we will get some use from some of the tarmac upgrades.
"Regional airlines face some of the steepest price rises... yet we get the least in return.
"Our margins are so tight and it's not like if we disappear that those remote regions will have another airline right in behind us ready to take up the route."
Auckland Airport responds
A spokesperson for the airport rejected any suggestion the planned infrastructure upgrades will make regional travel unaffordable.
"Regional airlines are a very important part of the aviation landscape at Auckland Airport," they said in a statement.
"We have partnered and championed Air Chathams right from the start of their operation, working tirelessly to enable them to be operationally and commercially successful because of their importance to the regions they serve.
"Airlines protesting against airport investment is a perennial issue that surfaces every five years when airports change their prices – a process which is currently underway.
"Airlines have strong commercial incentives to oppose airport investment in order to protect their margins."
The spokesperson added that, in addition to the current infrastructure build, consultation is underway with airlines on plans for increasing capacity and customer experience for regional flights.
"Our development programme will increase regional gate capacity and improve the experience for customers.
"Delaying this infrastructure is not in our country's best interests."
The numbers
Regional charges make up "a fraction of the cost of an average regional airfare (4%)", Auckland Airport said, adding their "domestic and regional charges have been rock bottom for years – 40 to 50% lower than comparable airports".
Between the financial years ended 2023 and 2027, the Regional Passenger Charges (RPC) will rise from $2.64 to $6.88, Air Chathams said, while landing charges for aircraft less than six tonnes will rise from $60.24 to $115.04.
That's on top of "an almost 50% increase in commercial leases for hangars needed to service our Auckland-based fleet over the past decade including the pandemic years", Emeny said.
The airport said that, by 2027, the regional charges would be comparable to Christchurch and Wellington airports.
"Regional charges increased by $2.70 in July from $4.40 to $7.10 – this is $3 to $4 cheaper than comparable current charges at other major NZ airports," a spokesperson said. "Regional prices will average $8.15 over the FY23 – FY27 pricing period."
The airport also drew attention to airfare price hikes.
"Today regional airfares to and from Auckland are significantly higher than they were pre-Covid (30% higher in 2023 than 2019 or $39).
"Regional airfares increased 16% between 2022 and 2023, higher than inflation which was 4.7% in the 12 months to Dec 2023."
SHARE ME