AIA to freeze aeronautical charges for 2023 financial year

Market release | 25 January 2022

Auckland Airport to freeze aeronautical
charges for the 2023 financial year

Auckland Airport has announced a 12-month delay in the first price reset for Price
Setting Event 4 (PSE4) in response to continued uncertainty in the aviation market
and to support airlines during the early phase of the COVID-recovery.

Since June 2021, Auckland Airport has been consulting with airlines on the timing of
the first price reset for PSE4, which would usually be effective from 1 July 2022.
PSE4 covers aeronautical prices for the 5-year period from the 2023 financial year
to the 2027 financial year. During consultation, Auckland Airport proposed
introducing a price freeze period where:
• prices for the 2023 financial year would be held the same as 2022 (with the
possibility of extension);
• prices for the 2024 financial year onwards would be determined following
airline consultation during the 2023 financial year; and
• those prices would be based on then forecast passenger volumes and set to
achieve Auckland Airport’s target return on aeronautical capital for the full
5-year PSE4 pricing period (in-line with the Input Methodologies specified by
the Commerce Commission).

Chief Financial Officer Phil Neutze said the vast majority of airlines operating at
Auckland Airport, including those represented by the Board of Airline
Representatives of New Zealand (BARNZ), had responded in favour of the proposal.

“This has been an extremely challenging time for everyone in aviation, and
Auckland Airport is working hard to support our airline partners while the recovery
trajectory remains highly uncertain.”

Mr Neutze said the only potential change to our aeronautical prices in the 2023
financial year would be an adjustment to the current $2.00+GST charge per
international and transit passenger (applying from 1 October 2021 to 30 June 2022
under the Regulatory and Requested (RRI) Policy) in order to recover additional
costs incurred segregating the international terminal to enable quarantine free travel.
Auckland Airport will consult with airlines prior to 30 June 2022 on the costs and
revenues collected under the RRI adjustment to date, and whether a further
adjustment to charges is needed under this policy in the 2023 financial year to
recover costs.

ENDS

For further information please contact:

Investors:
Stewart Reynolds
Head of Strategy, Planning and Performance
+64 27 511 9632
stewart.reynolds@aucklandairport.co.nz


Media:
Libby Middlebrook
Head of Communications and External Relations
+64 21 989 908
libby.middlebrook@aucklandairport.co.nz