Auckland International Airport Plans NZ$1.8 Billion Investment

By David Winning Features Dow Jones Newswires

Auckland International Airport (AIA.NZ) said it would spend 1.8 billion New Zealand dollars (US$1.3 billion) over five years on upgrades including a new domestic terminal, as it overhauled charges for airlines that use its facilities.

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Auckland International Airport said investment would also go toward building three more gates for aircraft, such as the Airbus A380 and Boeing 787 Dreamliner, improving the international check-in area, and expanding the border processing area and public arrivals space.

"As a result of this significant investment in infrastructure over the next five years, there will be better and faster passenger journeys through and around our airport," Chief Executive Adrian Littlewood said.

Tourism has overtaken dairy as New Zealand's biggest engine of export revenues, driven by an influx of visitors from countries like China and additional flights into Auckland from the U.S. Around 9.4 million passengers passed through Auckland airport in the six months through December, up 12% on a year earlier, with international and domestic travel each increasing by nearly 12%.

On Thursday, Auckland International Airport said average annual international passenger charges will fall by 1.7% in real terms over the next five years, while domestic passenger charges will rise by 0.8%. Changes to aeronautical prices are required by law every five years, and the new charges will take effect on July 1 and run through June 30, 2022.

Management confirmed that the company would introduce a runway charge of NZ$1.19 per passenger, excluding sales tax, from the start of the 2021 financial year once construction of a second runway is confirmed.

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Write to David Winning at david.winning@wsj.com

(END) Dow Jones Newswires

June 07, 2017 18:42 ET (22:42 GMT)