The Commerce Commission has ruled out an inquiry into airport regulation, for now.
Air New Zealand had written to the regulator, saying there was enough 'accumulated evidence and concern' to justify a probe.
The Commission has done a 'short, targeted review'.
Air New Zealand Head of Regulatory Affairs Kristy McKay revealed why she's pleased with this outcome.
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Speaker 1 (00:00):
The Commerce Commission has announced it will not undertake a
formal review of airport fees. Air New Zealand has asked
the ComCom to review if what the airport was charging
the airlines was out of control. Christy MacKaye is the
head of regulatory affairs for Air New Zealand. Hi Christy, Hi, Heather,
are you disappointed or were you expecting this?
Speaker 2 (00:18):
We were actually pleasantly surprised and happy with what the
Commerce Commission have Seeds. We think it confirms what we've
been saying for several years now, that these costs are
being locked into the system without any oversight.
Speaker 1 (00:36):
Okay, so what part I mean? Because they've basically declined
to do the review that you want, So what part
are you happy about?
Speaker 2 (00:43):
They have said that the inquiry can't really be done
on the legislation as it stands, so they've put it
back to the government and said for us to be
able to do the work that we would need to do,
there are some small changes that need to be made.
Speaker 1 (01:00):
Basically, yes, and so what are you happy about?
Speaker 2 (01:04):
We think it's good that two independent voices have now
come out in the past few months and seeds that
there is a problem This is something we've been saying
for over twenty years. So it's good that at least
they're acknowledging there's a problem. We don't we're not closer
to a solution, but you know, in our world we
(01:25):
still take the wins where we can.
Speaker 1 (01:26):
How but do you think the problem is well.
Speaker 2 (01:29):
We think it's potentially twenty billion dollar problem once you
look at what Auckland are planning to spend. And as
the Commission said in their report today, they don't really
have the tools to look at something that's that big,
that's across so many years, so that's it could be
bigger than twenty billion dollars.
Speaker 1 (01:50):
Of course, twenty billion dollars of war period of time.
Speaker 2 (01:53):
Out to twenty forty three, so.
Speaker 1 (01:56):
That's what like twenty years basically, So it's a billion
dollars a year?
Speaker 2 (01:59):
Yes, And is that?
Speaker 1 (02:00):
Is that a billion dollars on top of the airfares?
Speaker 2 (02:02):
Like?
Speaker 1 (02:02):
Is that them? Is that the price increase on top
of existing airfares?
Speaker 2 (02:07):
So I don't know if you want me to get
into I do airport relation, but basically the regulated airports
have their asset base, and they take the total size
of the asset base and then they add a bit
of interest on top and then divide it by the
number of passengers and then you get your per passenger cost.
(02:29):
So the bigger your asset base, the more you can
pass on to passengers.
Speaker 1 (02:34):
I see what you're doing there. Yeah, okay, what's the
game plan?
Speaker 2 (02:36):
Now?
Speaker 1 (02:36):
Are you just going to accept it? Are you going
to keep lobbying for some sort of regulation.
Speaker 2 (02:42):
We want what's best for Kiwi travelers, which is that
the government can have better oversight of what exactly airports
are spending because it's the Kiwi travelers that pay.
Speaker 1 (02:55):
Okay, now, is Greeg still around?
Speaker 2 (02:58):
He is? He's actually on holiday the moment.
Speaker 1 (03:01):
When's he leaving?
Speaker 2 (03:03):
When is he leaving two more weeks?
Speaker 1 (03:05):
So he's on holiday. He's on holiday two weeks before he.
Speaker 2 (03:08):
Leaves at school holidays here, No, it's not.
Speaker 1 (03:12):
It was school holidays last week. Today's the first day
they went went back to We're all very grateful for that.
That's how we know it.
Speaker 2 (03:18):
Yes, yes, I mean on my I can't comment on
my boss.
Speaker 1 (03:22):
Worry about it. He's not your boss for much longer.
So let's just smack talk him right now. Did you
go to his leaving party. Yes, I did now, Christy.
I heard that the leaving party was booze free because
it was in a hangar.
Speaker 2 (03:35):
Yes, is that true? That's right? Yes, all of our
all of our work sites are dry.
Speaker 1 (03:43):
Christy, that just sucks so badly. How how how much
did his leaving party?
Speaker 2 (03:47):
So it was a wonderful, wonderful event?
Speaker 1 (03:52):
But like, how fast were you wanting to get out
of the Yeah, there wasn't a dry eye, but there
was a dry glass? How fast did you want to
get out of there? Because it was so I.
Speaker 2 (04:01):
Was happy to be it was quite cold because it's
in the hangout. It was a wonderful tribute.
Speaker 1 (04:06):
Whoever's running your events needs you need to go to
them and you need to say to them next time
in a warm place with drinks. And that's the solution,
am I right?
Speaker 2 (04:16):
Okay, thanks, I'll pass that on.
Speaker 1 (04:17):
Yeah, I'm sure you will, Christy, Thanks very much. Christy
mckaye in New Zealand, Head of Regulatory Affairs O Greg
got ripped off at the end, didn't he ripped? No
one has a good time completely sober?
Speaker 2 (04:28):
Do that?
Speaker 1 (04:29):
I mean? I'm not I'm not advocating alcoholism, but just
a couple to lubricate conversations, you know what I mean.
For more from Hither duplessy Alan Drive, listen live to
news talks it'd be from four pm weekdays, or follow
the podcast on iHeartRadio
The Commerce Commission has announced it will not undertake a
formal review of airport fees. Air New Zealand has asked
the ComCom to review if what the airport was charging
the airlines was out of control. Christy MacKaye is the
head of regulatory affairs for Air New Zealand. Hi Christy, Hi, Heather,
are you disappointed or were you expecting this?
Speaker 2 (00:18):
We were actually pleasantly surprised and happy with what the
Commerce Commission have Seeds. We think it confirms what we've
been saying for several years now, that these costs are
being locked into the system without any oversight.
Speaker 1 (00:36):
Okay, so what part I mean? Because they've basically declined
to do the review that you want, So what part
are you happy about?
Speaker 2 (00:43):
They have said that the inquiry can't really be done
on the legislation as it stands, so they've put it
back to the government and said for us to be
able to do the work that we would need to do,
there are some small changes that need to be made.
Speaker 1 (01:00):
Basically, yes, and so what are you happy about?
Speaker 2 (01:04):
We think it's good that two independent voices have now
come out in the past few months and seeds that
there is a problem This is something we've been saying
for over twenty years. So it's good that at least
they're acknowledging there's a problem. We don't we're not closer
to a solution, but you know, in our world we
(01:25):
still take the wins where we can.
Speaker 1 (01:26):
How but do you think the problem is well.
Speaker 2 (01:29):
We think it's potentially twenty billion dollar problem once you
look at what Auckland are planning to spend. And as
the Commission said in their report today, they don't really
have the tools to look at something that's that big,
that's across so many years, so that's it could be
bigger than twenty billion dollars.
Speaker 1 (01:50):
Of course, twenty billion dollars of war period of time.
Speaker 2 (01:53):
Out to twenty forty three, so.
Speaker 1 (01:56):
That's what like twenty years basically, So it's a billion
dollars a year?
Speaker 2 (01:59):
Yes, And is that?
Speaker 1 (02:00):
Is that a billion dollars on top of the airfares?
Speaker 2 (02:02):
Like?
Speaker 1 (02:02):
Is that them? Is that the price increase on top
of existing airfares?
Speaker 2 (02:07):
So I don't know if you want me to get
into I do airport relation, but basically the regulated airports
have their asset base, and they take the total size
of the asset base and then they add a bit
of interest on top and then divide it by the
number of passengers and then you get your per passenger cost.
(02:29):
So the bigger your asset base, the more you can
pass on to passengers.
Speaker 1 (02:34):
I see what you're doing there. Yeah, okay, what's the
game plan?
Speaker 2 (02:36):
Now?
Speaker 1 (02:36):
Are you just going to accept it? Are you going
to keep lobbying for some sort of regulation.
Speaker 2 (02:42):
We want what's best for Kiwi travelers, which is that
the government can have better oversight of what exactly airports
are spending because it's the Kiwi travelers that pay.
Speaker 1 (02:55):
Okay, now, is Greeg still around?
Speaker 2 (02:58):
He is? He's actually on holiday the moment.
Speaker 1 (03:01):
When's he leaving?
Speaker 2 (03:03):
When is he leaving two more weeks?
Speaker 1 (03:05):
So he's on holiday. He's on holiday two weeks before he.
Speaker 2 (03:08):
Leaves at school holidays here, No, it's not.
Speaker 1 (03:12):
It was school holidays last week. Today's the first day
they went went back to We're all very grateful for that.
That's how we know it.
Speaker 2 (03:18):
Yes, yes, I mean on my I can't comment on
my boss.
Speaker 1 (03:22):
Worry about it. He's not your boss for much longer.
So let's just smack talk him right now. Did you
go to his leaving party. Yes, I did now, Christy.
I heard that the leaving party was booze free because
it was in a hangar.
Speaker 2 (03:35):
Yes, is that true? That's right? Yes, all of our
all of our work sites are dry.
Speaker 1 (03:43):
Christy, that just sucks so badly. How how how much
did his leaving party?
Speaker 2 (03:47):
So it was a wonderful, wonderful event?
Speaker 1 (03:52):
But like, how fast were you wanting to get out
of the Yeah, there wasn't a dry eye, but there
was a dry glass? How fast did you want to
get out of there? Because it was so I.
Speaker 2 (04:01):
Was happy to be it was quite cold because it's
in the hangout. It was a wonderful tribute.
Speaker 1 (04:06):
Whoever's running your events needs you need to go to
them and you need to say to them next time
in a warm place with drinks. And that's the solution,
am I right?
Speaker 2 (04:16):
Okay, thanks, I'll pass that on.
Speaker 1 (04:17):
Yeah, I'm sure you will, Christy, Thanks very much. Christy
mckaye in New Zealand, Head of Regulatory Affairs O Greg
got ripped off at the end, didn't he ripped? No
one has a good time completely sober?
Speaker 2 (04:28):
Do that?
Speaker 1 (04:29):
I mean? I'm not I'm not advocating alcoholism, but just
a couple to lubricate conversations, you know what I mean.
For more from Hither duplessy Alan Drive, listen live to
news talks it'd be from four pm weekdays, or follow
the podcast on iHeartRadio
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