It’s not often an airline applauds a regulator. Yet Air New Zealand has rolled out the welcome mat for the Commerce Commission’s Targeted Review of Airport Regulation, declaring it a much-needed reality check on what the national carrier politely calls “runway-robust” airport charges.
Chief Executive Greg Foran, a man not prone to hyperbole, praised the Commission’s findings and called for “urgent action” to ensure airport infrastructure delivers genuine value to Kiwi travellers and supports long-term economic growth, rather than simply padding balance sheets.
“Airports are critical infrastructure for New Zealand and this is the second time this year that an independent review has found their investments aren’t delivering long-term benefits for Kiwi consumers,” Foran noted.
Rising fees – and rising eyebrows
In 2023, Air New Zealand handed Auckland Airport a cool $61 million. This year, that figure has more than doubled to $144 million — and by 2032, the airline expects to be parting with an eye-watering $476 million, with little effective oversight on how those charges are set.
“For every dollar that goes to airport charges, it’s New Zealanders who end up paying,” Foran said. Add another $248 million in government agency fees and levies, and the bill soars to $724 million by 2032. Remember, Auckland is just one of 48 ports Air New Zealand operates.
Put plainly, airport charges are rising faster than a Dreamliner on take-off.
A Commission that finally lands
The Commerce Commission’s report pulled no punches, flagging a timing gap that prevents effective intervention before cost structures become cemented. Its analysis also suggested the current oversight regime is ill-equipped to rein in excessive spending on projects that may not deliver proportionate benefits to travellers or the broader economy.
Foran was forthright: “The Commission’s recommendations should be acted on with urgency before further costs are locked in and passed on to everyday Kiwi travellers and businesses.”
In a country where air travel is more necessary than a luxury, particularly for regional communities, that urgency rings loudly. Air New Zealand is the only airline serving 20 domestic airports nationwide. When charges climb, so does the price of mobility for families, students, and small business operators trying to stay connected.
The numbers don’t fly.
Air New Zealand’s economic analysis suggests that without reform, Auckland Airport’s current pricing settings could see 3.9 million fewer domestic passenger journeys by 2032, a sobering forecast for a nation that depends on air links as much as its motorways.
“Airport charges across the country are one of our fastest-growing costs,” Foran said. “We support sensible investment but airports don’t operate in isolation. Their spending must be scaled to what airlines and passengers can afford not just today, but for years to come.”
Auckland Airport has insisted its charges are rising by a modest $1.26 per passenger yearly. Yet critics point out that this figure conveniently omits the cost of its multi-billion-dollar terminal project, scheduled to open after 2027, a project whose pricing impact remains a mystery.
The airport has never publicly disclosed what that terminal will mean for future charges, and under current rules, it doesn’t have to. The Commission warns that this is precisely the problem.
A call for transparency – and fairness
At its heart, the debate isn’t anti-airport, it’s pro-accountability. Airports are vital to New Zealand’s connectivity and economic resilience. But without robust oversight, massive capital projects can easily balloon in cost and leave travellers footing the bill.
Under the present system, charges are often locked in for years before the Commerce Commission can intervene. When actual costs emerge, the runway is paved, the contracts are signed, and the fares are inevitably higher.
“Until the rules change,” Foran warned, “Kiwi consumers will keep hearing modest figures from airports while the real costs build quietly in the background. By the time they have to disclose the true cost, it will be too late for anyone to intervene and ensure that airport investment genuinely supports New Zealand’s long-term economic growth.”
Air travel as a public good
For decades, New Zealand has prided itself on a network of air links that bring people, products, and opportunities together. From Dunedin to Whangārei, the ability to fly isn’t a luxury; it’s a lifeline. When costs soar, those lifelines fray.
Air New Zealand may sound self-interested, but it aligns with a broader public interest principle: infrastructure should serve the country first and corporate returns second. When oversight lags behind investment, consumers lose twice — once at the check-in desk and again at the checkout.
What happens next
The Commission’s recommendations will now go before the government, which must decide whether to strengthen the rules around airport pricing and transparency. Industry watchers will hope for swift movement before another round of charges takes flight.
Air New Zealand has clarified its position: it supports sensible, sustainable investment in airports that benefits travellers, not just shareholders. And it expects regulators to act before the next wave of multi-million-dollar projects takes off without a flight plan that adds up.
Final approach
In a world where air travel is a pillar of national identity as much as infrastructure, the Commerce Commission’s findings feel like a long-overdue check-in for common sense. After all, airports exist to move people, not to ground them under mounting fees.
If the government acts on the Commission’s recommendations, New Zealand might find its airports lifting not only planes but also public confidence.
By Michelle Warner
BIO:
Michelle Warner is a storyteller with jet fuel in her veins. She cut her teeth in media publications before swapping the newsroom for the jump seat, serving as a flight attendant for major airlines and calling several countries home. Those miles gifted her a front-row view of people, places and the little rituals that make travel feel civilised. Now back at the craft she loves, Michelle writes with an editor’s discipline and a cabin crewer’s poise, clear, warm, and unflappable. Her work blends practical detail with old-fashioned polish, telling grounded stories that respect the reader’s time and celebrate the timeless pleasure of a well-told journey.
