Airline lobby group supports domestic terminal at Whenuapai

A TRANSTASMAN airline lobby group has waded into the debate over opening up Whenuapai air base for domestic flights, saying it is not surprised alternatives are being explored to Auckland’s ‘‘suboptimal’’ main gateway.

An analyst has also explained what is driving the push and weighed up the impact of such a move for travellers and the airport company.

Auckland Airport’s infrastructure deficit was costing travellers, airlines and New Zealand’s economy, Airlines for Australia and New Zealand says.

‘‘It’s not surprising that airlines are exploring alternative options for services into and out of Auckland airport, which delivers a suboptimal experience at a high cost to travellers,’’ A4ANZ chairman Graeme Samuel said.

He was previously chairman of Australia’s competition regulator, the ACCC.

Last week, Air New Zealand chief executive Christopher Luxon revived a longdormant push to open up the air force base as a dualuse airport.

Although there is some vociferous local opposition, scepticism about his motives and an initial thumbsdown from Defence Minister Ron Mark, Mr Luxon says it would bring down the cost of flying and open up the possibility of more regional flights.

Whenuapai has two runways, the longer of which is 2031m long and could comfortably accommodate both domestic jet and turboprop services.

Mr Samuel, whose group includes Air NZ, Qantas and Virgin Australia, said yesterday travellers using Auckland Airport were getting a raw deal in both cost and experience and fundamental policy issues needed to be looked at.

‘‘While A4ANZ welcomes the ongoing review of Whenuapai air base as part of the Government’s defence estate review, a more immediate solution is required to address the egregious monopoly behaviour of Auckland Airport,’’ Mr Samuel said.

The airport says A4ANZ’s view is ‘‘completely at odds’’ with written feedback received in recent weeks from its airline partners, stating their support for its infrastructure building programme.

Forsyth Barr analyst Andy Bowley assessed as remote the chances of the Whenuapai plan coming to fruition, but said it would create a headache for the airport at Mangere if it did.

It would not have a significant impact on the airport’s current earnings stream, given domestic passengers generate substantially less income on a unit basis than international passengers.

However, it would place in doubt the need for its planned northern runway.

‘‘This would remove a large chunk of AIA’s capex programme over the next 1015 years, which would impact its ability to leverage growth in its regulated asset base for aeronautical pricing and valuation (as we believe its share price incorporates a material multiple of RAB),’’ Mr Bowley said.

The airport planned to spend more than $1 billion on a new runway over the next 10 years.

The need for a new runway was due to its peak capacity constraints, Mr Bowley said.

Whenuapai could operate a budget commercial passenger terminal and Air New Zealand has said the cost of setting up operations there could be as low as $200 million.

Mr Bowley said lower aeronautical charges would be likely and the location of the airport would be popular with passengers originating from, or destined for, Auckland’s North Shore.

But he saw Mr Luxon’s comments as more of a parting shot at Auckland Airport, as he prepares to leave his job at the head of the airline at the end of the month.

Mr Bowley has listed why the Whenuapai bid might not go ahead. —

The Government would need to support the proposal, given it owns the air base and controls the air space. It would become a heated political issue, as it did more than a decade ago, both at a local and national level.

In recent years, there have been residential housing developments near the air base and more will be built in future. These residents may be subject to increased noise pollution.

Transport links would be limited, adding to traffic congestion, albeit the links to AIA are far from optimal.

‘‘We think the likelihood of Whenuapai becoming a commercial reality is low. However, we wouldn’t totally rule it out, as there is some logic to AIR’s [Air NZ’s] arguments,’’ Mr Bowley said. — NZ Herald

❛ It’s not surprising that airlines are exploring alternative options for services into and out of Auckland airport, which delivers a suboptimal

experience at a high cost to travellers