Auckland Airport to spend NZD 30 million on domestic terminal upgrades

Auckland Airport is spending about NZD 30 million to squeeze more life out of its domestic terminal, parts of which date back more than 50 years. The company recently outlined work going on at the ageing building which needs asbestos removed and new fire safety and ventilation equipment installed. Walls are being pushed out, Air New Zealand's regional lounge is being expanded, and the airport is investigating whether it should build its own lounge upstairs in the domestic terminal. While the spending is small for the scale of the work, the airport company says it will improve the passenger experience in the building which has been criticized for its lack of space for passengers, crowded forecourt drop-off areas, and lengthy queues at Aviation Security. The airport is spending about NZD 2 billion on infrastructure during the next five years but the long-awaited domestic jet terminal to be integrated in the redeveloped international facility would not be completed before 2022. General Manager Andre Lovatt said the existing terminal was to be expanded at the Jetstar end by pushing out the front wall into the forecourt to get about 1,000 m² of extra dwelling space. There would be an extra 75 m² in Aviation Security, a choke point for some of the 10 million passengers who move through the airport every year. “Queues can form as a result of a mismatch with anticipated presentation due to weather, traffic, large groups, flight delays, flights additional to the schedule - charter flights, regional passengers who are not required to be screened but may present to security for a range or reasons, including access to airline lounges,'' said an AvSec spokeswoman. Ahead of the peak southern summer travel period, AvSec was finalizing plans for ‘'load assistants' who help to load bags and trays through X-ray machines. It would also have ‘queue combers’ to provide advice to queued passengers on the carriage of dangerous goods, prohibited items, inorganic powders and liquids, aerosols and gels, and ensure the efficient flow of passengers to the screening lanes. ''We're still in the planning stage so can't confirm exact numbers, and it will vary from day to day, based on flight schedules and any other external impacts,'' said the AvSec spokeswoman. Lovatt said the airport was a complex place and the company worked closely with all agencies and airlines which wanted to ensure it spent money on the right things. More charging points for devices were being installed and toilets at the regional end of the terminal were being doubled in area. Asbestos in the roof area of the building - which started as an international terminal in 1965 - was being removed behind special containment structures. Floor and wall surfaces were being ripped out and replaced and new LED lights were being installed. For the 12 months to September 2018, 20.8 million travellers passed through the domestic and international terminals. This was up 5.5% on the previous year. The company expects up to 40 million passengers a year by 2030. Airlines for Australia and NZ (A4ANZ) Chairman Graeme Samuel said the NZD 30 million of spending was similar to that renovating a large mansion. He said the domestic terminal was in a poor state. ''It's the gateway to New Zealand but a pretty awful gateway.'' The Commerce Commission is due later this week to deliver a final report on Auckland Airport's pricing after earlier this year finding its profits may be too high. It said the airport was targeting a return of 7.06% which was above the commission's mid-point benchmark of 6.41%. The difference in target returns could result in customers paying an additional 61 cent per flight over the next five years and Auckland Airport earning an additional NZD 47 million in profits after tax. Samuel said Auckland Airport benefited from a light-handed regime that allowed airports to charge as they saw fit. Airlines were paying in advance for something to come through and they got no economic value for years. ''The airports have gone through the process of promising to build something but asking airlines to pay for it now,'' he said. #1087.8