1 00:00:00,080 --> 00:00:03,120 Speaker 1: Now MB has launched a review of airport regulation, just 2 00:00:03,160 --> 00:00:05,720 Speaker 1: three weeks after the Commerce Commission has given Auckland Airport 3 00:00:05,720 --> 00:00:07,880 Speaker 1: the tick of approval for its big upgrade. Now the 4 00:00:07,920 --> 00:00:11,200 Speaker 1: airport's association is upset that the scrutiny is on airports 5 00:00:11,280 --> 00:00:13,640 Speaker 1: yet again and not on Air New Zealand. And the 6 00:00:13,680 --> 00:00:15,720 Speaker 1: chief executive is Billy Moorehy, Billy. 7 00:00:16,280 --> 00:00:18,840 Speaker 2: Ay, it's very good to talk to you. 8 00:00:18,880 --> 00:00:20,880 Speaker 1: Why is MB looking at airport regulation again? 9 00:00:22,000 --> 00:00:25,640 Speaker 2: Look, we're not sure. We're pretty disillusioned about it. I 10 00:00:25,640 --> 00:00:29,320 Speaker 2: think it was as as short as eleven days since 11 00:00:29,360 --> 00:00:32,800 Speaker 2: the last review before we heard about this one. We 12 00:00:32,840 --> 00:00:34,760 Speaker 2: looked at this a couple of years ago. With the 13 00:00:34,760 --> 00:00:39,360 Speaker 2: Civil Aviation Act went through in twenty twenty three, we 14 00:00:39,400 --> 00:00:41,839 Speaker 2: had an effectiveness to review a few years before that. 15 00:00:41,960 --> 00:00:46,080 Speaker 2: It feels like rolling reviews where airports come out really well, 16 00:00:46,960 --> 00:00:49,879 Speaker 2: and yet we continue to see a blind spot when 17 00:00:49,920 --> 00:00:52,879 Speaker 2: it comes to the monopoly that most consumers are experiencing 18 00:00:52,880 --> 00:00:54,800 Speaker 2: in aviation, which is their New Zealand itself. 19 00:00:55,000 --> 00:00:56,920 Speaker 1: Okay, And when I'm getting to the Air New Zealand 20 00:00:56,920 --> 00:00:58,480 Speaker 1: thing with you in a tech because I am fascinated 21 00:00:58,520 --> 00:01:00,280 Speaker 1: by that as well. But is this looking at something 22 00:01:00,320 --> 00:01:02,360 Speaker 1: that is is this particular review looking at something that's 23 00:01:02,360 --> 00:01:03,959 Speaker 1: been looked at before or is it looking at something 24 00:01:04,000 --> 00:01:04,680 Speaker 1: completely new. 25 00:01:06,360 --> 00:01:08,920 Speaker 2: It's a little bit unclear. It's a very loose review. 26 00:01:09,000 --> 00:01:11,560 Speaker 2: They're describing it as a check in on the system 27 00:01:11,880 --> 00:01:14,200 Speaker 2: and whether it's working the way it should. We think 28 00:01:14,240 --> 00:01:17,200 Speaker 2: the Commerce Commissioner has already exhausted that through the last 29 00:01:17,240 --> 00:01:19,880 Speaker 2: review of Auckland Airport, which was probably the biggest test 30 00:01:19,959 --> 00:01:23,720 Speaker 2: that it's had with the significant infrastructure investment that they've had. 31 00:01:24,560 --> 00:01:26,720 Speaker 2: But they're looking at whether the system needs to be 32 00:01:26,840 --> 00:01:30,880 Speaker 2: more flexible. We'll obviously submitted to that, like we always do, 33 00:01:30,959 --> 00:01:33,080 Speaker 2: try to be constructive, but we are getting a little 34 00:01:33,120 --> 00:01:37,240 Speaker 2: bit disillusioned with the fact that it's airports. Again. It 35 00:01:37,240 --> 00:01:39,640 Speaker 2: seems like the safe place for the government rather than 36 00:01:39,680 --> 00:01:41,960 Speaker 2: really looking at the overall system and what's affecting it. 37 00:01:42,000 --> 00:01:44,240 Speaker 1: Fas Okay, now, what do you want them to look at? 38 00:01:44,240 --> 00:01:45,600 Speaker 1: This is the government. What do you want them to 39 00:01:45,640 --> 00:01:47,040 Speaker 1: look at? Rear New Zealand. 40 00:01:47,880 --> 00:01:51,400 Speaker 2: Look, we want to look at the domestic market. We 41 00:01:51,480 --> 00:01:54,320 Speaker 2: can see that there is a lot of strain on 42 00:01:54,360 --> 00:01:57,320 Speaker 2: the domestic market. It's in decline at this point. The 43 00:01:57,360 --> 00:01:59,800 Speaker 2: health of the market is really really poor. We've lost 44 00:01:59,800 --> 00:02:03,200 Speaker 2: one point five million seats out of the system since 45 00:02:03,280 --> 00:02:07,200 Speaker 2: twenty nineteen. So in contrast with the rest of the world, 46 00:02:07,320 --> 00:02:11,359 Speaker 2: our system is not growing. Aviation is going gangbusters offshore 47 00:02:11,639 --> 00:02:14,800 Speaker 2: and we're not seeing that same growth in New Zealand. 48 00:02:15,240 --> 00:02:17,600 Speaker 2: And part of that, a really significant part of that 49 00:02:17,800 --> 00:02:20,840 Speaker 2: is because we have one operator. Air New Zealand's great. 50 00:02:20,880 --> 00:02:24,400 Speaker 2: I work with them closely. They're excellent people, but they 51 00:02:24,440 --> 00:02:27,360 Speaker 2: are one business and they've had some really bad luck. 52 00:02:28,360 --> 00:02:31,280 Speaker 2: They also have eighty percent of their roots as monopoly 53 00:02:31,360 --> 00:02:34,120 Speaker 2: roots in the regions and listeners will experience that when 54 00:02:34,160 --> 00:02:37,119 Speaker 2: they're booking their flights every day. We need more competition 55 00:02:37,160 --> 00:02:42,040 Speaker 2: in that system. Ultimately, that's what affects early is Look, 56 00:02:42,080 --> 00:02:44,440 Speaker 2: we can't force competition, but we have to deal with 57 00:02:44,480 --> 00:02:48,720 Speaker 2: the consumer outcomes. If competition isn't possible, and that's essentially 58 00:02:48,720 --> 00:02:51,239 Speaker 2: what Air New Zealand argues. They think that the population 59 00:02:51,440 --> 00:02:55,560 Speaker 2: scale is too low for more competition. If more competition 60 00:02:55,600 --> 00:02:58,280 Speaker 2: isn't possible, then regulation needs to follow. That's what we 61 00:02:58,360 --> 00:03:04,040 Speaker 2: do with most other virtual monopolies, like transpower, like Chorus. 62 00:03:04,720 --> 00:03:08,799 Speaker 2: That's what happens. There's some kind of oversight the market 63 00:03:08,840 --> 00:03:11,080 Speaker 2: power of those things. Yes, so there has to be 64 00:03:11,160 --> 00:03:13,399 Speaker 2: some kind of action regardless of the decision you make 65 00:03:13,480 --> 00:03:15,240 Speaker 2: about whether competition is possible or not. 66 00:03:15,440 --> 00:03:17,320 Speaker 1: Okay, hey, Billy, thanks for talking us. I really appreciate it. 67 00:03:17,360 --> 00:03:21,079 Speaker 1: Billy Moore, chief executive of the Airport's Association. For more 68 00:03:21,160 --> 00:03:24,480 Speaker 1: from Heather Duplessy Allen Drive, listen live to news Talks. 69 00:03:24,480 --> 00:03:27,680 Speaker 1: It'd be from four pm weekdays, or follow the podcast 70 00:03:27,760 --> 00:03:28,720 Speaker 1: on iHeartRadio.