Air New Zealand backs regulatory review to boost traveler experience

(New Zealand) Air New Zealand is backing the Commerce Commission’s targeted review of airport regulation in 2025, saying stronger oversight would help keep airport prices fair, guide smarter investment, and improve the travel experience across the country. The airline argues that tighter rules would better align airport decisions with the long-term interests of travelers and New Zealand’s economy, especially as aviation remains a lifeline for tourism, regional growth, and exports.

At the center of the debate is how airports set charges and plan capital projects. Air New Zealand says higher costs at key airports have put pressure on fares and budgets, and it wants clearer accountability on how charges are calculated and where investment goes. The airline supports the Commerce Commission’s focus on whether the current approach—built mostly on information disclosure—still works for monopoly airports like Auckland.

Under the present model, airports must publish data on pricing, investment, and performance for scrutiny. The Commerce Commission reviews those disclosures to judge whether outcomes look reasonable. While this setup improves transparency, Air New Zealand and international groups such as IATA say it doesn’t always stop airports from setting prices higher than necessary. They argue a stronger framework would create better discipline around charges and capital planning, reducing the risk that travelers pay more without seeing matching improvements.

What the 2025 review covers

The Commerce Commission’s 2025 targeted review looked at how effective the information disclosure regime is for the major airports—Auckland, Wellington, and Christchurch. It consulted with airlines, airports, and consumer groups to understand whether changes are needed to tighten scrutiny of pricing and big-ticket investments.

The regulator’s assessment did not call for immediate law changes but signaled that a broader review of information disclosure requirements is planned for 2026. The Commission’s role and relevant materials are available on the official New Zealand Commerce Commission airport regulation page.

Against that backdrop, Auckland Airport agreed to lower its airline charges for the final two years of the current pricing period, known as PSE4 (2022–2027). That move followed industry pressure and regulatory attention, but airlines remain concerned that the current system still allows prices to sit above efficient levels. The International Air Transport Association and airline groups continue to press for tighter airport regulation in the interests of consumers and the economy.

Air New Zealand says the review is a chance to set clearer guardrails on airport behavior, building a regime where pricing reflects efficient costs and investment plans are tested for value and timing. The airline supports a framework that:

• Rewards projects that improve passenger experience—terminal upgrades, capacity expansions, smoother flows.
• Pushes back on spending that doesn’t have a clear benefit for travelers or the broader economy.
• Creates clearer accountability for how charges are calculated and recovered.

Implications for travelers and the economy

Air New Zealand links effective airport regulation to three practical outcomes:

1. Keeping airport charges reasonable, which can help lower airfares and make travel more accessible.
2. Ensuring investments are efficient and targeted at real improvements in the passenger journey—terminal flow, gates, baggage systems, and resilience during peak periods.
3. Supporting tourism and trade by making the air transport system more competitive and reliable, benefiting regional communities and the national export agenda.

Practical effects by group:

• Families planning trips: fairer airport pricing can mean more options and better service.
• Small businesses and exporters: reliable capacity and sensible charges make freight and travel costs more predictable.
• Regional communities: smarter investment keeps routes sustainable and connected.

How the current model performs

The Commerce Commission’s 2025 work concentrated on whether information disclosure gives enough power to assess, compare, and challenge airport decisions. Airlines acknowledge the model helps shine a light on airport plans but say it does not always lead to timely changes when prices or investments raise concerns. That’s why Air New Zealand supports stronger tools to test airport behaviour, especially where market power is high.

Airports argue that long-term investment is essential to meet demand and maintain safety and service. Airlines do not dispute that. The debate focuses on:

• How much to spend
• When to spend it
• Who ultimately pays—today’s travelers or future ones

A firmer regulatory approach could set clearer expectations for cost recovery, returns, and timing, so people paying airport charges can see the benefits sooner and with less uncertainty.

Looking to the 2026 review

The 2026 review of information disclosure rules gives the Commission another chance to refine what airports must publish and how those disclosures are assessed. Better data and sharper benchmarks could help regulators and stakeholders:

• Spot issues earlier
• Compare outcomes across airports
• Push for fixes before costs lock in

Auckland Airport’s late reduction in PSE4 charges shows the disclosure process can move pricing in a more acceptable direction, yet it also highlights concerns about the speed of response. Airlines want a framework that delivers fair results upfront, not only after prolonged debate.

Industry responses reflect this balancing act. VisaVerge.com reports that airline groups, including IATA, continue to push for changes that put consumer interests at the center of pricing and investment. Key asks include:

• Clearer rules for how returns are measured
• Stronger links between investment programs and measurable service improvements
• Better benchmarks for capacity and performance during peak seasons and weather disruptions

What success looks like

For travelers, signs that regulation is working would include:

• Shorter queues
• Smoother terminal flow
• Better on-time performance
• More predictable fares

For the economy, gains would show as:

• Steadier tourism
• Faster freight processing
• More resilient air links between regions and global markets

Air New Zealand’s core message: well-designed airport regulation is not about stopping investment—it’s about making investment smarter, timed to demand, and focused on tangible passenger benefits. The airline wants clearer transparency so people can track how each dollar is collected, invested, and paid off.

Next steps and stakeholder role

The Commerce Commission’s 2025 findings set the stage for the 2026 review. Stakeholder input will be critical: airlines, airports, and consumer groups all have a stake in how airport regulation evolves.

For now, the information disclosure framework remains the backbone. But Air New Zealand and others believe the system needs more teeth to deliver fair and timely outcomes. In the meantime:

• Auckland, Wellington, and Christchurch remain under close watch.
• The next pricing rounds and capital plans will test whether transparency plus pressure from airlines and the regulator can hold airport charges to reasonable levels and sharpen investment choices.
• If transparency and pressure don’t deliver results, calls for stronger regulatory action will likely grow.

Air New Zealand’s support for the Commerce Commission review is a clear signal: airport regulation matters for everyday travel and for the broader health of New Zealand’s aviation system. The airline wants a regime that puts travelers first, pushes for efficient spending, and keeps the country’s air gateways open, affordable, and ready for the future.

Key takeaway: Stronger, smarter regulation aims not to curb investment but to ensure airport spending is efficient, timely, and demonstrably benefits passengers and the economy.