Notice from the Minister
4. Pursuant to section 56 of the Commerce Act, the Minister has required the Commission to report as to whether it considers any of the airfield activities supplied by the three major international airports - Auckland, Wellington and Christchurch - should be controlled. These airports are the three biggest airports in New Zealand by total revenue and volume (aircraft movements, passenger numbers and freight volumes).
5. The Minister has asked the Commission to report on whether there is evidence that the requirements under section 52 of the Commerce Act are met for the airfield activities supplied by any, or all, of the three airport companies, i.e., whether:
- The goods or services (in this case, airfield activities) are, or will be, supplied or acquired, in a market in which competition is limited or is likely to be lessened.
- It is necessary or desirable to impose control in the interests of the persons acquiring (directly or indirectly) the goods or services.
6. The Minister has also asked the Commission to advise on conditions, tests or thresholds it considers useful in making that assessment.
7. If the requirements of section 52 are met, the Minister still has discretion as to whether to recommend control. In this regard, the Minister has asked the Commission whether market conditions are such that it considers that the Minister should recommend control of any of the airfield activities supplied by the three airport companies.
8. Airfield activities are one of a number of activities undertaken by airport companies. The Airport Authorities Act 1996 (the Airport Authorities Act) defines airfield activities as the activities undertaken (including the facilities and services provided) to enable the take-off and landing of aircraft. Airfield activities are specifically defined to include the following:
- Airfields, runways, taxiways, and parking aprons for aircraft.
- Facilities and services for air traffic and parking apron control.
- Airfield and associated lighting.
- Services to maintain and repair airfields, runways, taxiways, and parking aprons.
- Rescue, fire, safety and environmental hazard control services.
- Airfield supervisory and security services.
9. Under section 4A of the Airport Authorities Act, airport companies have the right, after consultation with substantial customers, to set whatever charges they think fit.
10. In conducting this Inquiry, the Commission considers that the Minister's request is confined to the airfield activities supplied only by the three airport companies - Auckland International Airport Limited (AIAL), Wellington International Airport Limited (WIAL) or Christchurch International Airport Limited (CIAL) - and it does not extend to any airfield activities that are supplied by other parties at any of the three airports (such as the airlines, Airways Corporation of New Zealand Limited or the Aviation Security Service). The Commission also focuses on those airfield activities supplied to aircraft operators - these being the bulk of the airfield activities supplied by the three airport companies - for which aircraft operators pay per tonne landing charges.
11. Chapter 1 outlines the full details of the Minister's Notice.
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