New Zealand Law Society - Commission releases final airport valuation amendments

Commission releases final airport valuation amendments

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The Commerce Commission has released its final decision on the application of the airport land valuation rules as part of the input methodologies review.

In July 2015 the Commission announced that it would fast track this tranche of work ahead of the main review to provide greater certainty before the next airport price setting events in mid-2017.

Deputy Chair Sue Begg says the draft amendments released for consultation in November 2015 remain broadly unchanged in the Commission's final decision. 

She says the amendments are designed to reduce ambiguity in the application of the market value alternative use (MVAU) valuation methodology for airport land, including the steps involved in determining MVAU, as well as special assumptions and practical valuation requirements.

"The airports and airlines have engaged positively with us throughout this fast-track process and we would like to thank those who made submissions. Transparency and predictability in relation to asset valuation are important for the industry, so we are pleased that completing this work early will enable Auckland and Christchurch airports to prepare updated land valuations ahead of their price-setting events next year, should they wish to do so," she says.