General Aviation Contracts

1. Eligibility

1.1 For aircraft of 5T MCTOW or less, the customer can contract to pay a negotiated fixed amount in 12 monthly instalments for all services.
Please note - contracts will apply to customers and any number of aircraft in their fleet that are applicable. They are not transferable.

1.2 This option will be limited to customers with a contract value of $10,000 (excl) p.a. before discount rate has been applied. The package will include aerodrome, approach, SARWATCH and/or flight plans according to customer demands, but excludes all Aerodrome service charges for Milford Sound

Airways may discontinue offering the contract option to customers if they fail to meet all criteria as outlined above.

2. Administration

2.1 Charges
Charges during the contract term will be calculated using the Standard Terms and Conditions and using the Ticket Option charges. A discount will be applied to the lesser of these totals.

2.2 Change of Aircraft
The contract shall apply exclusively to aircraft listed in the Letter of Agreement.
Any additional aircraft operated during the contract term will be billed Per Movement (PM).

All decisions regarding change of aircraft covered by the contract will be at Airways discretion

Please note customer are obligated to advise Airways, in writing, of any changes to aircraft owned/operated by them during the term of the contract. If they fail to do so any 'catch up' activity will be billed PM.

2.3 Term of Contracts

  • A contract will last 12 months and is renegotiated annually using Airways' statistics and anticipated movements.
  • All contracts must be renegotiated before current contract expiry. If there is no new contract agreed the customer will move to PM billing as per standard T & C.
  • Any contracts negotiated during the month will be applicable from the beginning of the next period. Negotiations cannot be backdated or done in arrears.
  • Contracts will come into effect from date of signing (i.e. must be signed before term of contract begins) and must be returned to Airways immediately upon signing.
  • Contracts will run on a calendar month i.e. all contracts will begin on the 1st of a month.

2.4 Payments and Invoicing
All invoices will be created at the end of the month for the following month's activities, in advance of provision of services. Payment is expected in advance, and contracts shall be negotiated with payment due on the first day of the month. Non payment by agreed date will result in customer being moved to per movement billing; however a warning will be given before this happens.

2.5 Negotiation of Contracts
Movement data for the previous 12 months is supplied to the customer and used to assist in forecasting expected future movements, and hence determine the value of the contract.

2.6 Reconciliation of Contracts
At the end of the contract term there will be a reconciliation done between actual total charges incurred for the term and the contracted amount.
An invoice or credit note will be issued for this amount to settle the contract within 60 days of its expiry.
The reconciliation will be done using all movement data collected during the term of the contract, and will be supplied to the customer at this point. Airways are not required to provide movement data at any other time.

NB: No discount will be applied to the actual charges if the total value of the movements is less than the threshold of eligibility of GA Contracts i.e. $10,000

2.7 Accuracy of Forecasting
It is understood that it is difficult for customers to accurately forecast their movements for a year in advance. Airways NZ will allow for a certain amount of inaccuracy.
If customers are consistently and materially under forecasting their movements Airways reserve the right to base the contracted rate on previous annual movements rather than customer forecasts

2.8 Termination of Contract
Early termination of contract by the customer is acceptable with valid reason (i.e. renegotiation due to aircraft change, change of billing option) and reconciliation will be done at that point. Customers will receive the full contract discount if their movements to date are in proportion with reaching the contract threshold of $10,000.

As billing is done in advance any notification will be applicable from the EOM, and reconciliation done as per above, using all data applying to the shortened contract period.