17 May 2013

Excessive profits still seen at Wellington airport

7:01 am on 17 May 2013

Airlines say the latest financial statements released by Wellington International Airport Ltd back the Commerce Commission's finding that the airport is making excessive profits.

The airport's annual net profit jumped 81% to $16.2 million for the year ended March. That's compared with $9 million the previous year.

A Commerce Commission report issued in February, found that Wellington airport was earning millions of dollars more than was reasonable.

Wellington airport is challenging the methodologies used to come to that conclusion.

But Board of Airline Representatives executive director John Beckett said these results confirm the commission's findings and it's going to get worse.

"Essentially what this is showing is a reflection of the first increase of five increases over this five year pricing period and there's going to be more increases of this order each year, one upon the other, for the next four years."

Mr Beckett said it's the actual result for the first of the five years that the commission looked at.

He said these increases and the excessive profit will continue over the next four years.