The case against Auckland airport’s new pricing: the double whammy

Auckland airport has underinvested for years on terminal facilities. (Image: BusinessDesk)

Tue, 01 Aug 2023

In part one of this two-part series, I looked at the impact on the price of flying from Auckland – or any – airport making substantial new capital investments after a period of under-investment.But there is a double-whammy in the case of Auckland airport’s (AIA) new pricing.That is because of the perverse impact of rising interest rates on the regulatory regime that airports operate under.The issue arises because capex alone is not the only variable airports use to set their prices for the airlines that use them.Prices are als...

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