Airport businesses push back on landing fees at Whanganui Airport

Whanganui District Council is caught in a clash with airport businesses over landing fees at Whanganui Airport, with “frustrated” users saying the fee increase is a “price hike”.

However, the council says the fees have
not yet been confirmed and it is working through a process with airport users.

“The minister of transport will make the final determination on our proposed fees structure, and we haven’t yet presented the information to the minister for a decision,” Whanganui Airport chief executive Sarah O’Hagan said.

“We also want to respect the agreement we have with each of the users who entered this consultation on the understanding that this information is confidential and commercially sensitive while we are going through the process. We can say that the fees are proposed to be phased in over five years.”

Wanganui Aero Club president Leroy Johnston said the consultation process with the council had been “very poorly run”.

“Basically, they want to railroad this through and not be considerate of any of the operators.

“We’ve all come together as a user group and sent in combined responses, and the council’s failed to listen to us at all or incorporate any changes.”

Johnston said he agreed landing charges needed to be raised in line with inflation, but under the proposed pricing structure, fees would increase every year for the next five years.

“In five years’ time, they’re proposing we pay the same rate as what it would cost us to land at Wellington International Airport.”

O’Hagan said the Cessna 172 aircraft operated by the Aero Club was currently charged a $10 landing fee at Whanganui. The landing fee for the same aircraft at Rotorua was $20, Marlborough $35.03, Palmerston North $7.54, Kāpiti Coast $14.76, Ardmore $24.96, Gisborne $30 and Tauranga $17.25.

Johnston said it was getting to the point where the Aero Club was reconsidering its position at the Whanganui airfield and whether to move club premises to a farm strip or smaller airfield nearby.

“For us, we just pass the cost on to our customer, but flight training is already pretty expensive and with rising fuel costs, it just makes getting a pilot licence more and more unobtainable.”

Air Chathams chief operating officer Duane Emeny said the airline was “hurting” from a “very severe” increase in landing fees from Auckland Airport as well as Whanganui Airport.

He said the resulting financial impact could restrict the number of Air Chathams flights.

“We may need to reduce our midweek services, which are more catered towards leisure travellers rather than business passengers.”

Landing charges have not risen at Whanganui Airport since 2009. A council review was supposed to happen in 2019 but was put on hold due to Covid-19.

Council chief executive David Langford said the council “absolutely did not want” a reduction of Air Chathams’ flights or for the Wanganui Aero Club to vacate Whanganui Airport.

“We’re trying to strike a balance because we want to make sure the airport stays affordable for all of the users.”

O’Hagan said there was a shortfall of about $1.09 million in the costs to run the airport this year, which would be split between Whanganui ratepayers and the taxpayer from the Ministry of Transport’s budget.

“Over the next five years, we want to help reduce this shortfall through an increase in the landing fees – which should amount to around $425,000 per annum.”

Aerowork chief executive Fabian Kopu said the landing fees were projected to rise by up to 300 per cent.

“The resultant landing charges would be more expensive than any other airport from which we currently operate.”

Kopu said this would be a substantial additional cost burden for local farmers and businesses that used Aerowork’s services.

“Any substantial increases of this nature would need to be passed on to individuals and businesses that use our aerial fertiliser spreading services.”

O’Hagan said the Cresco aircraft operated by Aerowork had a charge at present of $15 at Whanganui.

“The same aircraft to land at Rotorua is $28, Marlborough $35.05, Palmerston North $35.97, Kāpiti Coast $27.75, Ardmore $42.81, Gisborne $54.97 and Tauranga $28.75 – these are today’s charges at those airports.”

Mid West Helicopters chief pilot and director Dean Lithgow said the most positive outcome for airport users would be to reach a compromise with the council.

“It’s hard to justify such exorbitant price hikes without good consultation, and that’s the bit we’re all frustrated over.

“We expected a slight increase, there’s no doubting that, but such a significant increase was unjustified.”

Langford said his view was that the council had run a good process.

He said the council had followed the advice of an airport specialist during the consultation.

“Nobody likes it when fees and charges go up, so I’m not surprised that the airport users didn’t like the process, but the council’s tried really hard to engage with them.”

O’Hagan said the council was required by the Airport Authorities Act 1996 to review the fees every five years.

“We are now at the stage where a draft Final Pricing Determination is being prepared to go to the transport minister for approval.”

Langford said the fees had been set for the next five years so the council could keep in line with inflation and other oncoming increases and costs.