Auckland Airport announces billion-dollar investment

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Auckland Airport is to invest around $1.8 billion in aeronautical infrastructure by 2022

The investment is the result of a 17-month consultation with airlines and the airport community on the form and function of the facility’s future aeronautical infrastructure, Auckland Airport Chief Executive Adrian Littlewood says.Airport2

“It is also the result of a parallel year-long consultation process with airlines on investment plans, operations and pricing.”

Some of the key infrastructure projects planned for delivery at Auckland Airport between 2018 and 2022 include:

  • expanding and upgrading the international departure experience
  • providing three more contact gates for international aircraft, such as the A380 and B787
  • building a new domestic jet terminal joined onto the existing international terminal
  • improving the international arrival experience by expanding the border processing area and public arrivals space
  • upgrading the international check-in area
  • investments in public transport, roading and walking projects.

“As a result of this significant investment in infrastructure over the next five years, there will be better and faster passenger journeys through and around our airport,” Littlewood promises.

“The experience within the terminals will be more intuitive and relaxing, and transferring between domestic jet and international flights will be faster and more efficient.”

The airport is currently spending more than $1million per day investing in aeronautical infrastructure and the next five years will see “significant steps” on the path to opening a second runway, which Littlewood currently expects to be required in 2028.

“We will also be working hard with Airways New Zealand and the airlines to increase the capacity and productivity of our existing runway and will also be designing and securing the required planning permissions.”

Based on an opening date of 2028, he expects earthworks to start around 2020 or 2021. “If the construction of the second runway is confirmed, we will introduce a runway land charge of $1.19 (excluding GST) per passenger at that time.”

Auckland Airport’s new prices for the 2018–2022 financial years will target a return on investment of 6.99 per cent.

“We believe our new prices are fair and reasonable given the significant investment we are making in long-term infrastructure, and our charges remain only a small fraction of the overall cost of travel.”

The average domestic charge will be “well below average” for Australasian airports and our international charge will continue to be middle of the pack compared with other airports around the world served from Auckland Airport.”

“As part of our aeronautical pricing consultation, the airlines and Auckland Airport have also agreed to work together on looking for ways to continuously lift service standards and on managing the ongoing planning and delivery of infrastructure.”

“Our five-year pricing and infrastructure plan balances the needs of passengers, the airport community, the tourism industry, our investors and the airlines,” Littlewood believes.

“Implementation of Auckland Airport’s 30-year vision is now well underway – providing thousands of jobs and driving economic growth.

It will ensure that the airport continues to connect Auckland with New Zealand and New Zealand with the world.”

 

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