Air Navigation Services, Pricing and Terms

Airways is a State-Owned Enterprise established under the State-Owned Enterprises Act 1987. Airways provides services on a commercial basis under that Act, and is also authorised by Section 99 of the Civil Aviation Act 1990 and under Civil Aviation Rules to provide the services covered by these terms.

Our role is to provide a safe and efficient air traffic service. We do this by delivering world-class services and real value to our customers.

The Air Navigation Services (ANS) we provide include:

• Aerodrome Air Traffic Management services
• Aerodrome visual navigation aid services
• Approach services
• Enroute domestic and Oceanic services
• Flight Information Services in uncontrolled airspace
• Alerting services in uncontrolled airspace

Airways Services, Pricing and Standard Terms and Conditions

In competitive markets, market forces determine services and prices. As there is no competition for many of Airways' services in New Zealand, a different mechanism is needed to define services and service levels, and to set prices.

We carry out business efficiently and build stakeholder confidence by maintaining a clear Service Framework and Pricing Framework. These define our services, set prices and incentivise excellent performance.

The Service Framework sets out the services we provide, who receives them, and where and how the services are delivered.

The Pricing Framework defines the methodologies to price these services.

The Standard Terms and Conditions for the provision of Airways’ services present the prices and contractual terms under which Airways provides its services.

Work out the costs of your upcoming flight

You can work out the costs of your upcoming flight using our Charges Calculator.

Consultation on Airways’ proposed pricing for the 2022 – 2025 period

Airways is consulting with customers, stakeholders and the industry on our Price Reset for the period 01 August 2022 to 20 June 2025. 

We are very aware of the impact COVID-19 continues to have on the aviation industry, which is why, through the consultation, we are seeking to strike the right balance with respect to our pricing for the next three-year period while at the same time supporting the recovery of the industry.   

To support the recovery of the industry, at least for FY23, we will not be seeking full recovery of cost. This has been made possible through the Government’s support, as our shareholder, by agreeing to continue their financial support of Airways, for which we are grateful. This will allow us to limit price increases to our customers and ensure that Airways recovers in step with the wider industry.  

We have assumed a volume position, in consultation with our customers, which is based on a recovery scenario broadly aligned to recovery patterns observed offshore, once COVID-19 restrictions are lifted.  

Based on the assumed volume forecast, we propose that prices charged to airlines will need to increase by an average of 8% in FY23 and 16.9% over the three-year period to achieve target revenue.   

Following consultation there may be further revision of volume forecasts and prices to get back to target revenue for the three-year period. Prices will ultimately be set on the best available information as close to the reset period as practical. Forecasts and assumptions are therefore subject to change following the consultation period.  

Consultation commences on 01 April with submissions due by April 29. They will then be posted on Airways’ website for customers, stakeholders and the industry to review and submit cross-submissions on. Cross-submissions close on May 13.     

Important note for submitters

Please note that we will publish all submissions on our website. This is an important step as it allows us to run a transparent consultation process and enables others to consider whether they wish to make cross-submissions. However, if you wish to provide Airways with confidential information in a submission, you must supply both confidential and public versions of your submissions. The public version will be the one published on our website. The responsibility for ensuring that confidential information is not included in a public version of a submission rests with the submitter.

Consultation document

Pricing calculator

Feedback template

Submissions

Air New Zealand

Board of Airline Representatives of New Zealand (BARNZ)

International Air Transport Association (IATA)

Qantas

Virgin Australia