2019 Pricing Consultation

Airways Corporation of New Zealand Limited Pricing for the 2019-2022 Period

1.  Enhanced services Airways prides itself on being one of the most innovative Air Navigation Service Providers (ANSPs) in the world. Airways continues to look for new technologies that improve safety and resilience, create flexible and sustainable regional services and improve the overall sustainability of your business. Figure 5 outlines the revenue increases being driven by investments in enhanced services.

Figure 5 – Changes in revenue from enhanced services

$m change

% change

FY20 FY21

FY22 Total

FY20 FY21

FY22 Total 4

4.4

2.3%

A. Future Aerodrome Services

1.5

1.1

1.8

0.8% 0.5% 0.8%

5.0

2.6%

B. Flexible Contingent Runway

2.1

2.1

0.8

1.1% 0.9% 0.3%

C. UAV detection and management

2.6

1.4%

2.4

0.1

0.1

1.3% 0.0% 0.0%

3.6

1.9%

D. Other initiatives

0.5

1.4

1.7

0.3% 0.6% 0.7%

Total enhanced services

6.5 4.7 4.4 15.6 3.5% 2.0% 1.8% 8.2%

4. Total % column includes the compounding effect of the changes.

1.A. Future Aerodrome Services

AIRWAYS PROPOSED Airways has been working with stakeholders to determine the future service requirements at attended aerodromes around New Zealand. These services could range from Aerodrome Flight Information Services (AFIS), such as those currently provided at Kapiti and Milford, through to 24-hour-a-day Air Traffic Control (ATC) provision. It is Airways’ objective to provide fit-for-purpose services that will increase regional connectivity. Airways has been following the development of digital towers around the world since 2012, assessing whether digital technologies could improve the safety and flexibility of aerodrome services at a reasonable cost. Airways has visited digital towers at Budapest in Hungary, Leipzig in Germany and the Heathrow contingent tower in London. Airways is confident that the cost and capability of digital technologies presents significant opportunities for services in New Zealand. Airways proposed a digital tower solution at Invercargill to replace the existing physical tower. Following the installation of a digital tower in Invercargill, Airways proposed one in Auckland as a contingency option if the physical tower is unusable. If the digital solution in Auckland proves to be acceptable to stakeholders, there is an opportunity to use a digital tower as the prime means of control in Auckland from 2024, avoiding the need for a costly physical tower replacement.

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