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Auckland Airport reduces prices to airlines by $33 million

Auckland Airport will reduce its prices to airlines by $33 million over a five-year pricing period which equates to 31 cents per passenger.

The airport's price reduction comes after a Commerce Commission report.

Adrian Littlewood, Auckland Airport’s chief executive says, "Our approach to pricing reflects the need to provide for the future and address business risks specific to the airport, including undertaking a multi-billion dollar 30-year infrastructure programme."

He says he believes the prices they have set are "fair" and "in line with international standards".

Mr Littlewood says Auckland Airport carefully considered the Commerce Commission’s final report.

"We have listened to their feedback and believe this is reflected in the reduced charges to airlines."

Auckland Airport has reduced its target return from 6.99 per cent  to 6.62 per cent, compared to the Commission’s benchmark for airports of 6.41 per cent.

The changes will take affect by way of discounts on landing and passenger charges from 1 July 2019 and apply for the remainder of the pricing period which ends in June 2022.

Auckland Airport are currently going through a $2 billion upgrade with improvements including significant terminal and airfield upgrades, new roads and utilities.

Auckland Airport. Source: istock.com