LEVEL OF FEES 'NOT FOR COURT'
26 April 2008
Roeland van den Bergh
Air New Zealand must go to the Commerce Commission if it believes higher landing fees set by Wellington airport are unreasonable or monopolistic, the High Court at Wellington has found.
Air New Zealand has applied for a judicial review of the airport's raising of landing charges by 2.85 per cent a year for each of the next five years.
The airline says that Wellington airport failed to consult with an open mind and in good faith before setting its new charges.
The airline claimed Wellington airport was trying to earn monopoly returns and that the fee increase was unreasonable.
Air New Zealand also claimed that the airport could not increase fees in steps without consulting before each increase.
But Justice John Wild found this week that Wellington airport was not restricted from monopoly pricing under the Airport Authority Act and could increase fees in steps so long as it consulted the airline.
Whether the amount of increase was reasonable was for the Commerce Commission to determine, Justice Wild said.
Air New Zealand has withheld payment of the increased landing charges.
The court refused a summary judgment application from the airport ordering Air New Zealand to pay the money, which will also be determined at trial.
The judicial review is expected to go to trial in September or October.
© 2008 Fairfax New Zealand Limited. All Rights Reserved.
Dominion Post
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