BARNZ condemns Christchurch Airport for hiking landing costs. Image: TeamEmbo

Christchurch Airport has upset international carriers by increasing landing charges this month, despite low passenger numbers and continued global aviation support.

The Board of Airline Representatives (BARNZ) said many of its members were disappointed by the high surcharges imposed from December 2012 until 2017, Stuff Business Day reported. 

The increased charges surprised BARNZ members; given the ongoing, sometime unprofitable commitment the airlines provided the Christchurch and Canterbury area since the 2011 earthquakes.

“Astonishingly, the airport has set this level of charges in an attempt to make a 13.6 percent return on capital before tax,” BARNZ executive director John Beckett said.

“The Commerce Commission guidelines give a return of 9 percent before tax, which is overly generous.”

Christchurch Airport chief executive Jim Boult disputed Beckett’s claims of capital gain.

“I have no idea how he comes by his figures, but our position is the return on aeronautical assets averaged over the pricing period that we've set of four years is just over 7 per cent (after tax),” Mr Boult said.

The new charges would see cost increases of more than 40 percent for international operators to land at Christchurch Airport.

”For wide-bodied aircraft, this amounts to increases of over NZ$2000 per movement,” Mr Beckett said.

Mr Beckett estimated that the airport would charge airlines NZ$55 million more than the amount justified by the Commerce Commission, with these costs likely passed on to passengers in the form of increased airfares.

BARNZ represents a collective of airlines including Emirates, Qantas, Jetstar, Air New Zealand, Air Pacific, Singapore Airlines and Virgin Australia.