Christchurch International Airport Limited (CIAL)
10.2 CIAL was incorporated on 1 July 1988, with 75% of shares held by Christchurch City Council and 25% by the Crown. The Crown has indicated its desire to sell its shareholding. The Christchurch City Council and Ngai Tahu have first option to purchase the Crown's shares.
Operational Details
10.3 Christchurch is the largest airport in the South Island and the second largest in New Zealand. It markets itself as the gateway for inbound tourists to the South Island. Currently about 17% of New Zealand's international visitors enter the country via Christchurch. Approximately 75% of passenger movements at Christchurch are domestic.
10.4 Like Auckland, Christchurch Airport is able to handle the largest aircraft types currently in operation. It has two intersecting runways, the shorter of which is used for aircraft up to B767 size when the wind direction is unfavourable for the main runway (about 7% of the time). Like Auckland, the Airport operates 24 hours a day with no curfew or restrictions on noise, apart from the hours during which engine testing can be undertaken. At present, Christchurch does not suffer from airfield congestion, with runway utilisation being about 70% in peak periods.
10.5 Key operational statistics for the year ended 30 June 2001 are detailed in Table 54.
Table 54: Christchurch International Airport Operational Statistics
| Size | Land area (hectares) | 750 |
|---|
| Runway length (metres): |
| - Main Runway | 3,287 |
| - Cross Runway | 1,741 |
| - ICAO category | 8 |
| Aircraft Movements | Domestic | 61,952 |
|---|
| International | 7,738 |
| Other (incl. GA) | 83,752 |
| Total | 153,242 |
| Passenger Numbers | Domestic | 3,209,169 |
|---|
| International | 1,134,420 |
| Total | 4,343,589 |
| Freight Volumes | International (tonnes) for 2001 calendar year | 32,635 |
|---|
| MCTOW Landed (tonnes) | 1,779,665 |
|---|
10.6 Domestic freight statistics are not available for Christchurch International Airport.
Activities Undertaken
10.7 CIAL is largely a facilities provider - providing land or buildings from which third parties operate their business. However, there are some exceptions. CIAL operates predominantly in the business of providing airport facilities and services to airline and airport users, but continues to diversify its revenue base by focusing on investments and land holdings. Christchurch Airport offers significant technical input on site, with Air New Zealand having a maintenance base at the Airport. In addition, CIAL owns the waste disposal facility at the Airport, contracting the operations out to the Medical Waste Group.
10.8 CIAL's assets include the two runways, aprons, the terminal building, car parking, and other ancillary land and buildings. The terminal building is essentially three buildings together, as there have been distinct areas for the two main domestic airlines (Air New Zealand and the former Qantas NZ) and for the international operations. CIAL is planning developments to the domestic terminal area in the near future, creating a multi-user domestic terminal.
10.9 Air traffic control at Christchurch is currently undertaken by Airways Corporation (Airways). A number of other services, such as ground handling, are provided by other third parties.
10.10 A notable feature of CIAL is its role as a base through which the Antarctica research programmes of certain countries are supplied. This began in 1955 with the United States, and today includes New Zealand, the US and Italy. As part of the Antarctic theme, the airport operates a tourist facility - the Antarctic Visitor Centre.
10.11 A reasonable area of land is owned by CIAL, enabling it to have a commercial precinct at the airport. The company currently owns around 750 hectares of land, 550 hectares of which is the present airfield. In addition, there is plenty of flat farm land surrounding the Airport - some owned by CIAL - that could be used for further development. Christchurch is the only one of the three airports that, if required, has the ability to relatively easily extend the length of its current runway.
Airfield Activities
10.12 The activities undertaken by CIAL can be classified and grouped in terms of the three identified airport activities (defined in the Airport Authorities Amendment Act) and an additional grouping, other airport activities.408 This Inquiry focuses only on airfield activities.
10.13 Airfield activities at Christchurch International Airport, and those undertaken by CIAL, are as follows:
Table 55: Airfield Activities at Christchurch International Airport
| Element of Activity | Undertaken by CIAL | Undertaken by Third Party | Assets owned by CIAL | Prices charged or revenue derived by CIAL |
|---|
| Airfields, runways, taxiways, and parking aprons for aircraft | All land and sealed surfaces except those undertaken by third parties. | Aprons provided by Air New Zealand and NZ Post (part only). | All land and all sealed surfaces except those undertaken by third parties. | Landing charge and rent. |
| Facilities and services for air traffic control | Provision of Control Tower. | All air traffic control provided by Airways. | Airways office space and control tower. | Rent. |
| Facilities and services parking apron control | None. | Air New Zealand allocates gates for all flights. | None. | None. |
| Airfield associated lighting | Apron flood lighting. | Airfield lighting provided by Airways. | Apron flood lighting. | Landing charge. |
| Services to maintain and repair airfields, runways, taxiways, and parking aprons for aircraft | Grass mowing, pavement sweeping, and patching. Provide 24 hour, seven days a week maintenance service for all airport facilities, grounds and surfaces. | Contractors used for major maintenance, e.g., resealing and pavement rehabilitation. | Maintenance yard land, buildings plant and machinery. | Landing charge. |
| Rescue, fire, safety, and environmental hazard control services | All. | None. | Land, buildings, equipment and vehicles relating to rescue fire service. | Rescue fire component of landing charge. |
| Airfield supervisory and security services | Provides and maintains security fencing and perimeter patrols. | AVSEC provides airside security, security between airside and landside, and international passenger control. | Security fencing. | Landing charge. |
| Facilities/ assets held for future activities | Holds land. | None. | Land. | Rental from current users of land (e.g., farmers). |
10.14 As noted in Chapter 1, the Commission has focused on those airfield services supplied to aircraft operators - being the bulk of the airfield services supplied by CIAL, for which aircraft operators pay per tonne landing charges. The remaining airfield activities provided by CIAL are facilities provided (by way of lease or other commercial arrangements) to Airways Corporation of New Zealand Limited and the Aviation Security Service (AVSEC) to enable those parties to supply airfield activities themselves.
Airfield (Landing) Charges
10.15 CIAL's revenue from airfield activities is principally derived from landing charges levied on aircraft operators based on aircraft weight. The Commission has focused on determining whether landing charges need to be controlled.
10.16 On 1 October 1988, CIAL introduced new airport charges for each specific aircraft type covering the costs of both aircraft landings and the terminal (although the portion relating to the airfield was easily identifiable). The charges were revised slightly a year later (1989), and increased by an average of 2% on 1 June 1991 (for domestic aircraft only).
10.17 For the following 10 years, (from 1 June 1991 until 1 January 2001), CIAL's airport charges were held constant. However, on 1 January 2001, CIAL introduced new charges after lengthy consultation with substantial customers as required by the Airport Authorities Amendment Act 1997.409 Charges have been set for three years. Table 56 summarises CIAL's proposals and decision on charges.
Table 56: CIAL Consultation Proposals
| | < 3 tonnes | 3-6 tonnes | 6-30 tonnes | > 30 tonnes |
|---|
| December 1999 | Proposal | $6.00 | $14.32 | $5.93 | $6.21 |
| October 2000 | Proposal | $6.00 | $4.00 | $6.04 | $6.56 |
| December 2000 | Decision | $6.00 | $4.00 | $5.61 | $7.84 |
10.18 The change in landing charges between 1991 and 2001 is indicated below:410
Table 57: CIAL Landing Charges
| MCTOW | Charge Effective From |
|---|
| Min 01-06-1991 | Max 01-07-1991 | 01-01-2001 |
|---|
| <3 tonnes | $8.05/T | $ 8.05/T | $6.00/T |
| 3-6 tonnes | $5.29/T | $ 7.56/T | $4.00/T |
| 6-30 tonnes | $3.08/T | $ 5.36/T | $5.61/T |
| 30+ tonnes | $3.40/T | $11.59/T | $7.84/T |
Acquirers of Airfield Activities
10.19 The direct acquirers of the airfield services supplied by CIAL (that are being examined) are the aircraft operators - the commercial airlines and other aircraft operators that land and take-off at/from Christchurch International Airport. The indirect acquirers are the aircraft passengers and persons sending freight by aircraft. Table 58 details the acquirers.
Table 58: Acquirers of Airfield Services Supplied by CIAL
| Class or Grouping | User |
|---|
| Direct Acquirers: Aircraft operators | International - Air New Zealand, Air Pacific, Qantas Airways, Singapore Airlines |
| Domestic - Air New Zealand, Freedom Air, Origin Pacific Airways, Qantas Airways, Mount Cook Airlines |
| Commuter - Air Chathams, Air Nelson, Air Safari, Eagle Airways |
| Cargo Only - Airpost, Asian Express Airlines, DHL, Emery Worldwide |
| General Aviation - Canterbury Aero Club |
| Other - US Navy, International Antarctic Programmes (US, Italian and NZ) |
| Indirect Acquirers | Aircraft passengers, persons sending freight by aircraft (including freight forwarders) |
10.20 CIAL's substantial customers, in their own right, are Air New Zealand, Mount Cook Airlines (an Air New Zealand subsidiary) and Qantas Airways. The Board of Airlines Representatives of New Zealand Inc (BARNZ) represents these substantial customers in consultation.
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