1 00:00:00,120 --> 00:00:02,040 Speaker 1: If you feel like we're paying the highest price for 2 00:00:02,120 --> 00:00:05,880 Speaker 1: domestic airfares, you're wre not wrong. The Airport Council International 3 00:00:05,920 --> 00:00:08,760 Speaker 1: says domestic airfares have increased sixty three percent in this 4 00:00:08,760 --> 00:00:11,119 Speaker 1: country since twenty nineteen. That's one of the biggest jumps 5 00:00:11,119 --> 00:00:13,840 Speaker 1: in the world. The report says it's mostly down to inflation, 6 00:00:14,040 --> 00:00:17,200 Speaker 1: not airport fees. Billy Moore is New Zealand Airport's Association 7 00:00:17,280 --> 00:00:21,720 Speaker 1: Chief executive. Billy good Morning, Good morning. This report is 8 00:00:21,760 --> 00:00:24,320 Speaker 1: from and it's an airports group, isn't it So they 9 00:00:24,320 --> 00:00:25,279 Speaker 1: would say this, wouldn't they. 10 00:00:26,120 --> 00:00:29,280 Speaker 2: Look, yeah, you're right, there's a global airports group. But 11 00:00:29,320 --> 00:00:32,320 Speaker 2: the methodology is robust. It draws on the same global 12 00:00:32,440 --> 00:00:35,360 Speaker 2: data sets used by both airports and airlines around the world, 13 00:00:35,440 --> 00:00:37,520 Speaker 2: so the data is sound. 14 00:00:38,320 --> 00:00:40,680 Speaker 1: In New Zealand says, look, our costs have gone up. 15 00:00:40,720 --> 00:00:43,440 Speaker 1: That's the reason that the fares are going up. You know, 16 00:00:43,479 --> 00:00:45,760 Speaker 1: their costs are up forty percent of twenty nineteen. Their 17 00:00:45,760 --> 00:00:47,200 Speaker 1: prices are up thirty five percent. 18 00:00:48,800 --> 00:00:53,400 Speaker 2: Look. Criticizing airport charges has long been a business strategy 19 00:00:53,440 --> 00:00:57,840 Speaker 2: for large airlines at every point in the cycle. But 20 00:00:57,920 --> 00:01:00,600 Speaker 2: the airport charges are not the reason it costs one 21 00:01:00,600 --> 00:01:03,040 Speaker 2: thousand and fifteen hundred dollars to fly to a regional 22 00:01:03,120 --> 00:01:07,720 Speaker 2: center on average, and airport charges about five seven percent 23 00:01:07,800 --> 00:01:11,760 Speaker 2: of a total airline operating costs. What this report is 24 00:01:11,800 --> 00:01:16,480 Speaker 2: showing us is that the New Zealand's flight cost increases 25 00:01:16,520 --> 00:01:19,040 Speaker 2: are the highest in the region. It's sixty three percent. 26 00:01:20,120 --> 00:01:24,600 Speaker 2: It is time to look more closely at why that is. 27 00:01:24,200 --> 00:01:28,400 Speaker 2: The key driver that we see is around capacity reduction. 28 00:01:28,640 --> 00:01:33,880 Speaker 2: So as airlines reduce their capacity, they're spreading those cost 29 00:01:33,959 --> 00:01:37,800 Speaker 2: increases that they're citing over a smaller number of passengers. 30 00:01:38,200 --> 00:01:41,600 Speaker 2: That's why flights are so full, that's why air views 31 00:01:41,640 --> 00:01:43,560 Speaker 2: are so high, and we really need to see that 32 00:01:43,680 --> 00:01:44,520 Speaker 2: start to tune around. 33 00:01:45,000 --> 00:01:47,040 Speaker 1: I mean, they've got engine issues, this is what they 34 00:01:47,040 --> 00:01:49,920 Speaker 1: would argue anyway. Is this just more of that. It's 35 00:01:49,960 --> 00:01:52,880 Speaker 1: the airports versus their New Zealand. You know, this is 36 00:01:52,920 --> 00:01:54,720 Speaker 1: the long running saga continues. 37 00:01:55,320 --> 00:01:57,680 Speaker 2: Oh look, you know, as I see, it's long been 38 00:01:57,720 --> 00:02:02,720 Speaker 2: a strategy for them to target airports. Is the problem. 39 00:02:02,760 --> 00:02:05,520 Speaker 2: I think that's not the case. 40 00:02:05,640 --> 00:02:07,320 Speaker 1: Your things are going up on they walk on the airport. 41 00:02:07,360 --> 00:02:09,840 Speaker 1: One hundred and forty four million dollars this year, it'll 42 00:02:09,880 --> 00:02:12,799 Speaker 1: be four hundred and seventy six million dollars by twenty 43 00:02:12,840 --> 00:02:14,800 Speaker 1: thirty two that they've got to pay. 44 00:02:15,960 --> 00:02:18,880 Speaker 2: It's not there is a number that the airlines have 45 00:02:19,000 --> 00:02:21,880 Speaker 2: come up with they're also going to be making Is 46 00:02:21,919 --> 00:02:24,040 Speaker 2: it wrong? Billion dollars from that amount? 47 00:02:24,720 --> 00:02:28,400 Speaker 1: Is the number wrong? Is the number wrong? Is how 48 00:02:28,480 --> 00:02:30,600 Speaker 1: much will they be paying in twenty thirty two if 49 00:02:30,600 --> 00:02:32,120 Speaker 1: not four hundred and seventy six million. 50 00:02:32,919 --> 00:02:36,880 Speaker 2: The reason why that's not a number that's actually out 51 00:02:36,919 --> 00:02:39,200 Speaker 2: there is because the airports have to console with your 52 00:02:39,240 --> 00:02:42,480 Speaker 2: lines before they make any decisions around those costs out 53 00:02:42,520 --> 00:02:45,720 Speaker 2: to twenty thirty two. So it is a lobbying exercise 54 00:02:45,760 --> 00:02:47,520 Speaker 2: from the airlines to come up with that number. 55 00:02:47,560 --> 00:02:50,440 Speaker 1: All right, So the numbers wrong, numbers wrong. Billy, appreciate 56 00:02:50,480 --> 00:02:52,720 Speaker 1: your time this morning. That's Billy Moore and New Zealand 57 00:02:52,760 --> 00:02:54,440 Speaker 1: Airports Association chief executive. 58 00:02:55,240 --> 00:02:57,480 Speaker 2: For more from Early Edition with Ryan Bridge. 59 00:02:57,560 --> 00:03:01,000 Speaker 1: Listen live to News Talks it Be from five am weekdays, 60 00:03:01,280 --> 00:03:03,280 Speaker 1: or follow the podcast on iHeartRadio.