Departure tax feared in airports plan

Press, 5 December 1986, Page 9

Departure tax feared in airports plan

Domestic air travellers may have to pay $2O departure taxes if the Government’s proposal for restructuring New Zealand’s airports goes ahead, according to a Christchurch City councillor.

Cr John Burn said airlines might charge a $2O tax on top of the ticket price if they had to meet increased airport charges. Members of the council’s airport committee were discussing the Government proposals for restructuring Christchurch Airport so that it was administered by a joint company run by a board of Government and council nominees.

The Town Clerk, Mr John Gray, said that the present joint venture was far from a true partnership because the Government was able to dictate the landing charges and dues at the airport. What the council was seeking, he said, was a modification to the present arrangement. Councillors should see the company proposal as their

handing over control to three nominees.

Cr Burn said the airport was directly linked to the community, and those who used it, through the elected councillors. He was wary of any scheme that distanced those running the airport from the community. Under the airport company envisaged, the companies could set fees and charges but only after consultations with the airlines.

Cr Burn said he had heard a suggestion that airlines could introduce a ‘‘s2o departure tax” on top of ticket prices on domestic flights.

The committee will invite the Minister of Aviation, Mr Prebble, to a meeting of the airport committee to discuss the proposal further. Mr Prebble has already met the airport authorities in Auckland and Wellington.

Increased landing charges for the airport were outlined to the committee yesterday. Although the Government

announced at the beginning of last month an increase in the charges it has not formally advised the council.

They are believed to be as follows for Christchurch: Airport dues (to the airport authority), 4 per cent; Airways dues (to the Government), 15 per cent plus an extra 1 per cent charge. These rates are for domestic dues and are calculated on gross revenue.

Airport dues for international users are expected to go up to $2.30 per 1000 kg maximum take-off weight, Airways dues $16.60 per 1000 kg plus an extra 90c charge. The new charges for Christchurch are still well below the share granted to Wellington and Auckland airports, but are a significant increase on present fees. The airport had budgeted revenue for 1986-87 of $1.89 million domestic and $250,000 international. The new charges represent an increase of $2.14 million over the whole year.