Call for formation of airport companies

Press, 25 September 1987, Page 3

Call for formation of airport companies

The Minister of Civil Aviation, Mr Jeffries, yesterday urged airport authorities to abandon the present joint-venture system of airport administration and hasten the formation of airport companies. In a keynote address to the airport authorities’ annual conference in Christchurch, Mr Jeffries argued that corporatisation was necessary if the costs of airport operations were to be met by the users of the civil aviation system. "There should be sufficient revenue to fund the basic facilities of the civil aviation system — runways, terminals, airways

controls, and all the ancillary services,” he said. “Most travellers given the choice between paying a little more in their fares or enduring delays, discomfort or even possible hazards will pay.” Efficiency and better use of publicly owned assets were the new virtues in New Zealand, he said. The present jointventure system of adminnistering airport assets was inadequate. It had to be changed on the same principles as other sectors of the publicly owned economy. The Airport Authorities Amendment Act allowed the establishment of airport companies with clear

commercial objectives. An Auckland airport company would be in place by April, and Mr Jeffries said the Cabinet had decided to increase the number of customs officers at Auckland Airport. A further 11 airport authorities were contemplating the formation of companies while the Airways Corporation was implementing commercial policies In his address, the Minister traversed developments in the aviation industry in the next three years and said he particularly hoped Australia would allow New Zealand interests access.