13 April 2010

Departure Tax for Kerikeri?

Source : http://www.stuff.co.nz/auckland/northland/local-news/northern-news/3549199/Departure-tax-forecast

Passengers on scheduled flights from the Bay of Islands Airport could be charged a departure tax from July 1 by airport owner Far North Holdings. The Far North District Council-owned firm has signalled the tax in a three-year statement of intent, but has not said how much the tax will be. It also plans to make casual parking at the airport free from July 1 and charge commercial operators an annual licence fee to park at the airport. Far North Holdings chairman Tony Norman told district councillors last month the firm needs $4 million over the next four years to fund the runway upgrade. A departure tax would generate extra revenue of about $120,000 a year, providing income to service new loans for the work. Mr Norman hopes to have more details about the tax after a meeting with councillors at the end of the month. Air New Zealand subsidiary Eagle Air says the national carrier is generally unsupportive of airports imposing taxes above the costs they charge the airline to use them. Any tax is an increase in the cost of travel for consumers in a market where Air New Zealand has been striving to lower the cost of travel, says Eagle Air general manager Carrie Hurihanganui. The airline doesn't collect departure taxes at three other airports in New Zealand that levy passengers travelling on scheduled domestic flights. It wouldn't assist in the collection of a tax at Bay of Islands Airport either, Ms Hurihanganui says. Palmerston North International Airport introduced a domestic departure development levy in 1990 to meet its interest costs of borrowing for major redevelopment works, including a new terminal. The levy payable by each passenger aged five years and older was initially $3, but that has since been raised to $5.

1 comment:

  1. Leeches.

    Looking at the departure tax at places like Rotorua, I cannot believe that this highly inefficient way of charging passengers extra is actually a net raiser of money. Factoring in the staff wages and other costs, it must just come to a wonderful way to hassle the public. Why don't they just raise the amount they charge the airlines by that amount per passenger?

    "Right now, as you are leaving our city, we'll make really sure that you leave with a very bad gouging impression of the place".