Billie Moore: NZ Airport Association Chief Executive says Airports Association is not to blame for increase in fare prices

The Airports Association is defending itself after airlines blame their charges,  for spikes in airfares. 

An international airport group says New Zealand’s domestic airfares have shot up more quickly than any other country by 63-percent in six years. 

But Air New Zealand says its fares are only up 35-percent.

Association chief executive, Billie Moore told Ryan Bridge the biggest driver is air capacity reduction, so smaller numbers of passengers are footing bigger bills. 

She says criticising airport charges has long been a strategy for major airlines but they're not the reason. 

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Episode Transcript

Speaker 1 (00:00):
If you feel like we're paying the highest price for
domestic airfares, you're wre not wrong. The Airport Council International
says domestic airfares have increased sixty three percent in this
country since twenty nineteen. That's one of the biggest jumps
in the world. The report says it's mostly down to inflation,
not airport fees. Billy Moore is New Zealand Airport's Association
Chief executive. Billy good Morning, Good morning. This report is

(00:21):
from and it's an airports group, isn't it So they
would say this, wouldn't they.

Speaker 2 (00:26):
Look, yeah, you're right, there's a global airports group. But
the methodology is robust. It draws on the same global
data sets used by both airports and airlines around the world,
so the data is sound.

Speaker 1 (00:38):
In New Zealand says, look, our costs have gone up.
That's the reason that the fares are going up. You know,
their costs are up forty percent of twenty nineteen. Their
prices are up thirty five percent.

Speaker 2 (00:48):
Look. Criticizing airport charges has long been a business strategy
for large airlines at every point in the cycle. But
the airport charges are not the reason it costs one
thousand and fifteen hundred dollars to fly to a regional
center on average, and airport charges about five seven percent
of a total airline operating costs. What this report is

(01:11):
showing us is that the New Zealand's flight cost increases
are the highest in the region. It's sixty three percent.
It is time to look more closely at why that is.
The key driver that we see is around capacity reduction.
So as airlines reduce their capacity, they're spreading those cost

(01:33):
increases that they're citing over a smaller number of passengers.
That's why flights are so full, that's why air views
are so high, and we really need to see that
start to tune around.

Speaker 1 (01:45):
I mean, they've got engine issues, this is what they
would argue anyway. Is this just more of that. It's
the airports versus their New Zealand. You know, this is
the long running saga continues.

Speaker 2 (01:55):
Oh look, you know, as I see, it's long been
a strategy for them to target airports. Is the problem.
I think that's not the case.

Speaker 1 (02:05):
Your things are going up on they walk on the airport.
One hundred and forty four million dollars this year, it'll
be four hundred and seventy six million dollars by twenty
thirty two that they've got to pay.

Speaker 2 (02:15):
It's not there is a number that the airlines have
come up with they're also going to be making Is
it wrong? Billion dollars from that amount?

Speaker 1 (02:24):
Is the number wrong? Is the number wrong? Is how
much will they be paying in twenty thirty two if
not four hundred and seventy six million.

Speaker 2 (02:32):
The reason why that's not a number that's actually out
there is because the airports have to console with your
lines before they make any decisions around those costs out
to twenty thirty two. So it is a lobbying exercise
from the airlines to come up with that number.

Speaker 1 (02:47):
All right, So the numbers wrong, numbers wrong. Billy, appreciate
your time this morning. That's Billy Moore and New Zealand
Airports Association chief executive.

Speaker 2 (02:55):
For more from Early Edition with Ryan Bridge.

Speaker 1 (02:57):
Listen live to News Talks it Be from five am weekdays,
or follow the podcast on iHeartRadio.