Every three years Airways consults with its customers – airlines, airports and the general aviation community - on enhancements to services and associated service prices.
Airways’ Proposed Pricing for the 2019-2022 Period was released for consultation on 29 January, and is available below. This document sets out proposed prices and investment, and outlines the public consultation process and timeline. This includes the opportunity for submissions, requests for further information and public meetings across the country.
Requests for further information will close on 1 March, and the deadline for submissions closes on 15 March. Final prices will be published on 29 May and new prices take effect from 1 July 2019.
Airways is focused on providing air traffic management services that enable aircraft to navigate safely and efficiently across New Zealand. In order to ensure safe skies today and tomorrow, we need to create the aviation environment of the future. We believe the initiatives and pricing presented in this proposal reflect a sensible balance between the need to invest in New Zealand’s aviation network, while maintaining prices that are internationally competitive.
Airways is proposing an average increase of 6.3% per year to ensure the continued safety and resilience of the aviation network, while anticipating and planning for the new realities of air traffic management. Proposed revenue would fund:
· A set of service enhancements to deliver additional customer value and lay the foundation for the aviation environment of the future. Initiatives include digital towers, a flexible contingent runway in Auckland and UAV detection technology.
· The continuance of Airways’ business transformation programme and air traffic management (ATM) platform replacement to add resilience, responsiveness and flexibility to the services you receive.
· A carefully considered capital programme that is designed to maintain the resilience of New Zealand’s existing aviation network.
· Changes to Airways’ operating cost base, including inflationary uplifts and collective employment settlements.
General Aviation (GA) pricing
Following the implementation of Airways’ Pricing Framework in 2012, Airways believes that GA prices contribute fairly to the total cost of providing services. Airways is therefore proposing that GA prices are simply increased by the forecast level of inflation so they remain in line with underlying costs.