AIAL takeover bid
Dubai Aerospace has announced a takeover bid for Auckland International Airport Limited.
Air New Zealand’s position on the subject of foreign ownership of this strategic national asset has been the subject of considerable interest by politicians, media and investors.
While the ownership of AIAL is a matter for its shareholders and now the Government, all that Air New Zealand seeks is an effective regulatory framework that ensures an end to the monopoly abuse that sees travellers and airlines using this important gateway to our nation being burdened with excessive charges. This fact was well captured by PwC in its June 2007 analysis* which showed Auckland International Airport Limited is generating approximately $90 million in excess revenue per annum.
New Zealand Airports have the statutory right to set charges as they see fit. The Australian Productivity Commission described New Zealand as having no airport regulation.
The possibility of a statutory right to set charges as thought fit (which is in itself unique for a private sector company) passing to a foreign controlled company is untenable.
Australia has regulations preventing a single foreign company owning more than 15% of an airport as well as prohibiting a party associated with an airline owning more than 5% of an airport.
It is Air New Zealand’s strong view that the owner of Auckland International Airport Limited should not be linked in any form to an airline, so that there is no possibility of preferential treatment of any kind that would disadvantage any other operator.
Air New Zealand intends to make a detailed submission to the Overseas Investment Commission.
Air New Zealand’s position on the subject of foreign ownership of this strategic national asset has been the subject of considerable interest by politicians, media and investors.
While the ownership of AIAL is a matter for its shareholders and now the Government, all that Air New Zealand seeks is an effective regulatory framework that ensures an end to the monopoly abuse that sees travellers and airlines using this important gateway to our nation being burdened with excessive charges. This fact was well captured by PwC in its June 2007 analysis* which showed Auckland International Airport Limited is generating approximately $90 million in excess revenue per annum.
New Zealand Airports have the statutory right to set charges as they see fit. The Australian Productivity Commission described New Zealand as having no airport regulation.
The possibility of a statutory right to set charges as thought fit (which is in itself unique for a private sector company) passing to a foreign controlled company is untenable.
Australia has regulations preventing a single foreign company owning more than 15% of an airport as well as prohibiting a party associated with an airline owning more than 5% of an airport.
It is Air New Zealand’s strong view that the owner of Auckland International Airport Limited should not be linked in any form to an airline, so that there is no possibility of preferential treatment of any kind that would disadvantage any other operator.
Air New Zealand intends to make a detailed submission to the Overseas Investment Commission.