Auckland International Airport Limited (AIAL) has appointed engineer Susana Fueyo Suarez as Chief Infrastructure Officer as it ramps up its most significant upgrade with major projects underway across transport, terminals and airfields.
But Air New Zealand opposes AIAL’s proposed ten-year $7-to 8-billion dollar development. It has lodged an official request to Commerce Minister Andrew Bayley to inquire about airport spending regulations.
AIAL says Fueyo Suarez brings 25 years of experience in leadership and a track record of delivery in infrastructure projects, leading large-scale developments in aviation, transport infrastructure and defence in Australia and worldwide.
She was appointed following the resignation of André Lovatt, who left for KiwiRail after five years at the airport.
“Auckland Airport is getting on with building the resilient, fit-for-purpose gateway that meets the needs of travellers and our country’s economy,” says Auckland Airport chief executive Carrie Hurihanganui.
“Susana’s expertise in infrastructure programme delivery, strong stakeholder management, critical thinking and experience in executing in live operating environments made her a stand out during the recruitment process,” she says.
“I’m excited to be joining Auckland Airport as it gets underway with such a transformative infrastructure programme that’s going to deliver a real step change for customers,” Fueyo Suarez said.
Fueyo Suarez has a Master of Engineering from the University of Nottingham and a Bachelor of Mechanical Engineering from the University of Oviedo, Spain.
National carrier says development is unaffordable
Air New Zealand believes AIAL’s proposed $7- to $8-billion development will be more significant than the combined investment by all three airports regulated by the Commerce Act over the past 30 years.
It says airlines will pay this through steadily increasing aeronautical charges, leading to unaffordable airfares for some Kiwis.
Air New Zealand chief executive Greg Foran says this is the most any privately owned airport has spent in such a short time, delivering minimal new capacity.
“The new airport will look great, but this spend doesn’t deliver an additional runway, and there will be virtually no increase in airside capacity for more customers. By 2032, the value of the airport’s asset base, which dictates the size of its charges, will have increased per-passenger domestic charges five times, with more to come,” Foran says.
“Air New Zealand agrees the airport needs redevelopment, but not at a cost that some Kiwis can’t afford to fly. This issue affects all passengers passing through Auckland Airport – especially those from the region.
“Last year, with the help of the same international experts that worked on AIAL’s 30-year Master Plan, we provided the airport with alternative terminal designs that would be significantly cheaper while still providing a great facility. We also shared data on the severe impact of their spending on air travel demand. They have not paused and plan to keep pouring concrete.
“Auckland Airport will argue that it consulted with Air New Zealand, but it has ignored our warnings, and there has been no meaningful change. It has received the same feedback from Qantas Group and BARNZ that this is not affordable and will cost the travelling public. IATA has seriously questioned the business case,” he says.
Foran says the impasse shows the current ‘Information Disclosure’ regime within the Commerce Act is failing consumers, but there is a solution.
“The Commerce Act has pre-existing alternative options to keep regulated airports under control. These include steps that require airports to negotiate with their customers on a commercial basis, go to arbitration if that fails, or the regulator can set the price and quality of their service,” Foran says.
“The good news is neither of these options requires a new law to be passed – the Commerce Act already provides options, so it’s not a case of more red tape. We are asking the Commission to launch an inquiry to determine which regulatory option is best for consumers,” he says.
The International Air Transport Association (IATA) has also made a submission to the Commerce Commission asking for greater scrutiny of regulated airports in New Zealand, as has Qantas Group, Airlines for Australia and New Zealand (A4ANZ) and the Board of Airline Representatives (BARNZ) which represents 26 airline members and five non-airline members.
