Airport Dues Increased From October 1 Next

Press, Volume CI, Issue 29801, 18 April 1962, Page 14

Airport Dues Increased From October 1 Next

(NJZ. Press Association)

WELLINGTON, April 17. Airport and airways dues will be increased from October 1 next.

The Minister of Civil Aviation (Mr McAlpine) announced tonight that internal services airways dues would go up from 51 per cent, to 6 per cent of gross revenue for passenger aircraft m excess of 12,5001 b, and airport dues be increased from Is 9d to 2s 6d a 1001 b of passenger load embarked at airfields on scheduled services. *

Mr McAlpine said that for international flights, airways dues would be increased from £2O to £3O for each takeoff, with airport dues up from 6s to 9s a 1001 b of passengers and freight taken on departing planes. Airport dues for freight, and airport and airways dues for passenger operations with lighter aircraft and aerial work would remain unchanged. “If the increases are incorporated into the National Airways Corporation fare structure, fares would possibly go up by about 2s on an average fare of £6,” said Mr McAlpine. The increase in dues was in line with Government policy that the cost of operating airport and airways facilities should be progressively transferred to the users as they were able to bear it, said Mr McAlpine. Since dues were introduced in 1954, there had been only one previous increase, on January 1, 1960. “Airport and airways dues ensure that users pay a share of the cost of operating the facilities provided for them by taxpayers, and in the case

of airports, also by ratepayers, who, apart from capital development costs, are still meeting all loan charges and the excess cost of day-to-day maintenance over airport income,” he said. The revised charges would not apply until half-way through the 1962-63 financial year. Both National Airways Corporation . and South Pacific Airlines of New Zealand had faced heavy expenditure in the 1961-62 year —N.A.C. through the introduction of many new aircraft . which could not be fully employed on its trunk route because of the delay in the availability of Mornona airport, Dunedin, and S.P.A.N.Z. in the development of new routes. "The over-all increase in airline passenger traffic on internal services will, however. be about 10 per cent for the year ended March 31.” said Mr McAlpine “The opening in May of Momona, though initially under some restrictions, is expected to improve considerably N.A.C.'s aircraft utilisation.

“South Pacific Airlines of New Zealand has now been

in operation over a year and will now have the benefit of .the existing rates of dues for the first half of the financial year which began on April l,”-said Mr McAlpine. The total additional recovery from the charges for a full year was estimated at about £78.000 for airways dues and £90,000 for airport dues. The Government placed a good deal of importance on the recovery of airport operating costs, because of its policy of passing airport management to local authori-

ties under share-cost agreements.

“On a national basis, airport dues at the increased level, plus business income, now at a very satisfactory figure, particularly at larger airports, will almost balance airport operational and maintenance costs," said Mr McAlpine.