Airways - Making your world possible

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.

Airways Service Framework 2021

Airways Pricing Framework 2022

Airways Standard Terms and Conditions 2022

Work out the costs of your upcoming flight

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

Current consultations

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

Previous consultations

2021 Review of Airways’ Pricing Framework and Standard Terms and Conditions

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Consultation on the review of Airways’ Pricing Framework and Standard Terms and Conditions opened on Wednesday, 3 November 2021. Submissions closed on Wednesday, 1 December 2021 and were posted on Airways’ website for customers, stakeholders and the industry to review and submit cross-submissions on. Cross-submissions closed on Wednesday, 15 December 2021. No cross-submissions were received. 

The Pricing Framework was set in 2012 and defines the methodologies we use to price the services in the Service Framework. Our prices are set against the Framework on a three-yearly cycle, with the next cycle running from 1 July 2022 to 30 June 2025. 

Before Airways sets prices for that period, we welcomed feedback on the Pricing Framework itself as well as a proposed change to the treatment of ‘works-in-progress’ (WIP). 

Airways currently includes capital expenditure in pricing when it occurs, rather than when the asset in question is forecast to be commissioned. Regarding concerns customers have previously raised, we proposed to hold WIP in a separate account until the assets are forecast to be commissioned, meaning only customers only pay for services once they start to receive a benefit from them. This approach aligns with that adopted by the Commerce Commission. We also identified a number of minor areas in our Standard Terms and Conditions that required updating to comply with changes to legislation or reflect current practice. 

Airways carefully reviewed and considered the feedback on the proposals and we thank submitters for their thoughtful and informed submissions. 

Taking into account the general support received from submitters, Airways has decided to proceed with our proposed amendment to the Pricing Framework in relation to the treatment of WIP.  

Airways has also decided to publish a revised version of the Standard Terms and Conditions including, where appropriate, minor changes and additional amendments in response to points raised by submitters.  

We appreciate the time submitters took to respond to us in a thoughtful and constructive manner. 

More information on the consultation, submissions and the decision document can be read below. 

Consultation documents 

Pricing Framework Review Consultation Paper

Proposed Pricing Framework

Proposed Standard Terms and Conditions

Decision documents

Decision Paper

Pricing Framework

Standard Terms and Conditions

Submissions

Air New Zealand

Board of Airline Representatives of NZ (BARNZ)

Emirates

International Air Transport Association (IATA)

Jon Brooks

NZ Airports Association

Qantas

2021 Review of Service Framework

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In 2021 Airways consulted on our Service Framework which sets out the services we provide and who pays for them.

The Service Framework was last reviewed in 2012 so a review was needed to ensure it remains fit for purpose.  

14 submissions and three subsequent cross-submissions were received.

The feedback from submitters was that there was nothing to suggest we need to make any substantial changes to our current Service Framework.

We appreciate the time submitters took to respond to us in a thoughtful and constructive manner.

More information on the consultation, submissions and the decision document can be read below.

Consultation documents 

Service Framework Review Consultation Paper

Proposed Revised Airways Service Framework

Decision document

Service Framework Decision Paper

Service Framework 2021

Submissions

Air New Zealand 

Auckland International Airport Limited

Aviation NZ 

Board of Airline Representatives of NZ (BARNZ)

Christchurch International Airport Limited 

Civil Aviation Authority of New Zealand (CAANZ)

International Air Transport Association (IATA)

Kapiti Airport

Nigel Fitzhardinge

NZ Air Line Pilots' Association (NZALPA)

NZ Airports Association 

NZ Aviation Federation 

Rotorua Regional Airport Limited 

Wellington Airport 

Cross-submissions

Aviation Marine Engineers Association (AMEA)

NZ Airports Association 

Rotorua Regional Airport Limited

Airways' Pricing consultation for the 2019-2022 period

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Every three years Airways consults with its customers – airlines, airports and the general aviation community – on enhancements to services and associated prices. The purpose of this is to ensure the continued safety and resiliency of the aviation network, while preparing for the future.       

This latest pricing consultation commenced in January 2019 and was completed in May. The consultation included the opportunity for submissions, requests for further information and public meetings across the country.  

All customer feedback, including 12 detailed submissions, were carefully considered in setting the final prices.  

The final prices and Airways’ response to customer feedback are outlined in the consultation response document found below.  

Decision document

Pricing For The 2019-2022 Period:  Consultation Response Document

Consultation documents

Download Copy of Airways pricing calculator 1 Jul 19 Final Prices 

Download Airways Standard Terms and Conditions 

Download Airways pricing consultation - proposed prices 

 

Submissions 

Air Chathams

Air New Zealand

Aircraft Owners and Pilots Association of New Zealand (AOPA NZ)

Aviation NZ

Board of Airline Representatives of New Zealand (BARNZ)

Flying New Zealand

International Air Transport Association (IATA)

Malcolm Savill

NZ Airports Association

Peter Armstrong

Qantas Group

Virgin Australia Group