1 00:00:00,040 --> 00:00:02,559 Speaker 1: You think you're paying a lot for airfares, you are right. 2 00:00:02,720 --> 00:00:04,760 Speaker 1: New report out this morning. This is from the Airport 3 00:00:04,800 --> 00:00:07,880 Speaker 1: Council International, the ACI, And then that's a bit of 4 00:00:07,920 --> 00:00:10,039 Speaker 1: a story. I suspect sixty three percent increase in this 5 00:00:10,119 --> 00:00:13,000 Speaker 1: country domestically since twenty nineteen an airline tickets one of 6 00:00:13,039 --> 00:00:15,720 Speaker 1: the highest in the world, Malaysia's fifty three, Vietnams fifty two. 7 00:00:16,680 --> 00:00:21,120 Speaker 1: It's inflationary pressures, they claim, not airport charges. Now. Jeremy 8 00:00:21,160 --> 00:00:23,520 Speaker 1: O'Brien's the New Zealand Chief Customer and Digital officer, and 9 00:00:23,520 --> 00:00:26,680 Speaker 1: as well, there's Jeremy good morning, Good morning, Mike Kane. 10 00:00:26,800 --> 00:00:29,080 Speaker 1: Very well. Indeed, So how many facts are we dealing 11 00:00:29,120 --> 00:00:31,400 Speaker 1: with here versus how much politics is at play? 12 00:00:32,400 --> 00:00:34,360 Speaker 2: Yeah, Look, so I can only really speak to the 13 00:00:34,440 --> 00:00:37,320 Speaker 2: data that we've got, and you know, air data shows 14 00:00:37,320 --> 00:00:41,560 Speaker 2: that's that over that period as at thirty five percent, 15 00:00:41,640 --> 00:00:44,239 Speaker 2: and we understand is that that's a big increase. But 16 00:00:44,720 --> 00:00:46,440 Speaker 2: you know the reason for that is that costs are 17 00:00:46,520 --> 00:00:48,400 Speaker 2: up by out of forty percent, and so we haven't 18 00:00:48,440 --> 00:00:51,159 Speaker 2: passed that cost on to the consumer. But is it 19 00:00:51,280 --> 00:00:56,320 Speaker 2: a high high cost market that is exagerating at the moment? 20 00:00:56,440 --> 00:00:59,279 Speaker 1: Do you get where they get their sixty three from. 21 00:01:00,000 --> 00:01:01,840 Speaker 2: Now I don't really get where they give you sixty 22 00:01:01,840 --> 00:01:04,240 Speaker 2: three from. I look at air data and air sacs 23 00:01:04,880 --> 00:01:08,240 Speaker 2: that you know we report regularly, and so you know, 24 00:01:08,280 --> 00:01:10,840 Speaker 2: we're very confident in their backs base, and that fact 25 00:01:10,880 --> 00:01:14,000 Speaker 2: base tells us that fears are up thirty five percent 26 00:01:14,040 --> 00:01:15,440 Speaker 2: in our costs are up over forty per cent. 27 00:01:15,760 --> 00:01:18,880 Speaker 1: Now the marginal role of airport charges would you call 28 00:01:18,920 --> 00:01:19,520 Speaker 1: them marginal? 29 00:01:21,400 --> 00:01:24,399 Speaker 2: Well, look if I give you an example before, you know, 30 00:01:24,440 --> 00:01:26,520 Speaker 2: if you take it one way flight from Aubland to Wellington, 31 00:01:27,000 --> 00:01:30,200 Speaker 2: we now pay sixty dollars sixty two fees before that 32 00:01:30,319 --> 00:01:32,880 Speaker 2: aircraft that even miss the ground. So you know that's 33 00:01:32,880 --> 00:01:35,360 Speaker 2: a pretty fit pro portion of your costs. And if 34 00:01:35,360 --> 00:01:38,360 Speaker 2: I look at landing charges and packs levies over automatically, 35 00:01:38,400 --> 00:01:41,319 Speaker 2: they're up forty three to cents in twenty nineteen, and 36 00:01:41,319 --> 00:01:43,440 Speaker 2: then ify tweety SAX we expect they're going to be 37 00:01:43,520 --> 00:01:46,000 Speaker 2: up to sixty seventy six a cent. So I wouldn't 38 00:01:46,000 --> 00:01:47,200 Speaker 2: say that that's a small amount. 39 00:01:47,640 --> 00:01:49,800 Speaker 1: In the report they talk of the so called single 40 00:01:49,880 --> 00:01:52,400 Speaker 1: till deals places like India and China where airports are 41 00:01:52,440 --> 00:01:54,920 Speaker 1: regulating controlled by the government stuff. Is there anything in that? 42 00:01:55,080 --> 00:01:57,080 Speaker 1: I mean, are we just a completely different model and 43 00:01:57,080 --> 00:01:58,120 Speaker 1: it's pointless looking at it. 44 00:01:59,280 --> 00:02:01,840 Speaker 2: Look, I think it is a different model, and you 45 00:02:01,840 --> 00:02:04,200 Speaker 2: know that is the model we're operating within within the market. 46 00:02:04,320 --> 00:02:07,000 Speaker 2: So you know, we have to run with the model 47 00:02:07,000 --> 00:02:09,440 Speaker 2: that accepted in this market and that's what we try 48 00:02:09,440 --> 00:02:09,960 Speaker 2: to manage. 49 00:02:10,040 --> 00:02:11,400 Speaker 1: So where are we at with the airports? I mean 50 00:02:11,440 --> 00:02:14,079 Speaker 1: the ComCom I personally was surprised the other day when 51 00:02:14,080 --> 00:02:15,960 Speaker 1: they decided they didn't need to look at airports. I mean, 52 00:02:16,000 --> 00:02:17,720 Speaker 1: I would have thought the airports need looking at. What's 53 00:02:17,760 --> 00:02:18,160 Speaker 1: your view? 54 00:02:20,280 --> 00:02:22,760 Speaker 2: Look? I mean, as you is, we look at we 55 00:02:22,800 --> 00:02:24,959 Speaker 2: need to look at the whole aviation sector. The reality 56 00:02:25,080 --> 00:02:30,639 Speaker 2: is we've seen significant cost inflation in our semestic environments 57 00:02:30,639 --> 00:02:33,320 Speaker 2: that we're operating within. There's quite a lot of capital 58 00:02:34,000 --> 00:02:37,720 Speaker 2: going to airports around the country and the reality is 59 00:02:38,200 --> 00:02:41,760 Speaker 2: we are a reasonably small country with long distances supply 60 00:02:42,280 --> 00:02:44,920 Speaker 2: and air position would be that in many cases we 61 00:02:45,000 --> 00:02:47,680 Speaker 2: think we're over capitalizing and that it's going to impact 62 00:02:47,720 --> 00:02:50,600 Speaker 2: the long term sustainability and affordability of the market here 63 00:02:50,639 --> 00:02:51,120 Speaker 2: in New Zealand. 64 00:02:51,200 --> 00:02:53,040 Speaker 1: It doesn't change anything for the punter, though, is I 65 00:02:53,120 --> 00:02:54,760 Speaker 1: mean the price is the price, and we hate the price, 66 00:02:54,800 --> 00:02:55,160 Speaker 1: don't we. 67 00:02:56,560 --> 00:02:58,520 Speaker 2: Yeah, looking you know, I don't like the fact that 68 00:02:58,560 --> 00:03:01,480 Speaker 2: we're having to pay for exten more costs either, but 69 00:03:01,600 --> 00:03:04,120 Speaker 2: it is the reality of what we're facing from that 70 00:03:04,200 --> 00:03:07,320 Speaker 2: cost environment perspective, and I think you know all of that. 71 00:03:07,800 --> 00:03:11,040 Speaker 2: From a New Zealand perspective, I would like it to 72 00:03:11,400 --> 00:03:14,240 Speaker 2: not be as high inflation as it is, but the 73 00:03:14,280 --> 00:03:17,760 Speaker 2: aviation spectre at the moment here domestically is facing significant 74 00:03:17,760 --> 00:03:18,760 Speaker 2: exhilaration in cost. 75 00:03:19,160 --> 00:03:21,800 Speaker 1: Good one. Jeremy appreciate it. Jeremy I Brian in New Zealand, 76 00:03:21,840 --> 00:03:24,160 Speaker 1: Chief Customer and Digital Officer. Never the twins shall meet, 77 00:03:24,200 --> 00:03:27,400 Speaker 1: of course. For more from the Mic Asking Breakfast, listen 78 00:03:27,480 --> 00:03:30,440 Speaker 1: live to news talks. It'd be from six am weekdays, 79 00:03:30,680 --> 00:03:32,720 Speaker 1: or follow the podcast on iHeartRadio.