Wellington International Drops Passenger Departure Fee

Wellington International Airport has announced that it will drop the International Departure Fee that is currently payable by passengers on overseas flights from April 1, 2012. The surcharge, known to many as the Departure Tax, has been in place for more than 20 years but has been removed as part of a new pricing document that will be introduced by the airport this year.

The new charges scheme has been agreed following extensive consultation with airline partners and will cover a five year period from April 1, 2012. “The new price structure means international charges will reduce by $1.72 per passenger each year in real terms. Domestic charges will increase on average by 74c each year. Overall, the average fees per passenger will increase by 41c or 3.6% per year in real terms,” explained Matt Clarke, Chief Commercial Officer, Wellington International Airport.

The new arrangement will keep travel to and from Wellington “competitive”, according to the airport and will see international charges decline by a potential 39 per cent over the five year period. The reduction in international charges combined with incentives for growth is expected to help promote new routes and additional services to the city.

“Improving the traveller experience is important to us and removing the departure fee will make it easier for all passengers travelling internationally. Taking away the need to join the queue and pay the fee is a big step forward,” said Steve Sanderson, Chief Executive Officer, Wellington International Airport.

According to Sanderson, the final prices place Wellington’s charges “in between” Auckland and Christchurch Airports and in “the lower range” of Australasian Airports in terms of cost per passenger. “This is a productive and workable outcome for airlines, passengers and our shareholders, which include all Wellington City ratepayers,” he added.

The airport has also confirmed a plan to invest $65m in aeronautical assets over the five-year period. Following the opening of the Airport’s dual use terminal, The Rock, the next significant capital development will be the Southern Terminal expansion which will provide increased gate lounge space and new toilets and the expansion of the Southern Apron increasing aircraft capacity to accommodate growth.

This month the airport will handle around 800 weekly flights offering more than 63,000 seats. Its network is currently significantly biased towards the domestic market which accounts for 86.1 per cent of seat capacity. Air New Zealand is the dominant carrier at Wellington International with a 76.7 per cent share of the total capacity, with Auckland and Christchurch the largest destinations with 36.1 per cent and 17.9 per cent shares of the total weekly seat capacity, respectively.