Review of airport landing fees

Project by Link Economics Group

infrastructure pricing nz

Evaluation for Freightways and New Zealand Post of aeronautical pricing proposals by Christchurch International Airport (2022) and Palmerston North Airport (2019)

Freightways and New Zealand Post engaged Link Economics to review Christchurch International Airport Limited (CIAL’s) aeronautical pricing proposal for the five-year period commencing July 2022. Link Economics reviewed and provided feedback on CIAL’s five-year forecasts of passenger numbers and non-passenger aircraft Maximum Certified Take-Off Weight (MCTOW), operating expenditure and capital expenditure forecasts, the methodology that CIAL’s used allocate costs between airfield and other activities, the pricing structure, and CIAL’s calculation of the Weighted Average Cost of Capital (WACC).

In 2019, Link Economics conducted a similar review of Palmerston North’s aeronautical pricing. We reviewed and provided feedback on the Building Block Model (BBM) used to determine prices and also conducted a benchmarking study to compare the airport’s landing charges with those of other New Zealand airports.

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