2019 Pricing Consultation

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

Airways is excited about the benefits digital towers can provide to lower-volume regional locations. Airways will complete a detailed feasibility study during the 2019-2022 pricing period of a broader roll out at suitable locations in the 2022-2025 pricing period. Airways will consult on the plan for future aerodrome services at other regional locations as part of the next pricing consultation. SUMMARY OF SUBMISSIONS Airline customers were supportive of the implementation of digital tower services. BARNZ and Air NZ specifically mentioned they expected the technology would deliver flexibility and increased safety, while maintaining cost-effective services in the future. Air NZ said that they see digital tower services as “essential for long-term sustainability, particularly in regional centres”. NZ Airports supported working with stakeholders to determine ‘fit-for-purpose’ services to enhance regional connectivity and/or reduce costs. They also submitted that planning for future regional services needs to happen urgently, and it was not acceptable to defer planning for future regional services until the next pricing period. NZ Airports said that in most cases fit-for-purpose solutions should result in cost savings, which could then be factored into three-yearly pricing decisions. One GA submitter opposed digital towers. He submitted that a physical presence at a location ensures a personal relationship between controllers and local pilots. He said that in his opinion locally based controllers are more aware of local conditions, and the employment of locally based controllers helps support local communities. AIRWAYS’ RESPONSE Submissions from airline customers were supportive of the implementation of digital tower services in Invercargill and Auckland. Airways will now focus on implementing the programme. Airways would also like to reassure customers that in parallel with the implementation of digital services at Invercargill and Auckland, Airways will be continuing to develop fit-for-purpose aerodrome solutions at regional locations. This includes progressing more cost effective solutions, such as Aerodrome Flight Information Services (AFIS), with stakeholders and the regulator. Airways remains committed to presenting a business case for future digital tower investment at suitable locations in the next pricing consultation. This is a realistic timeframe that will allow Airways to implement and learn from the Invercargill and Auckland digital towers. Figure 6 outlines Airways’ plan to implement digital towers, with the financial summary presented in figure 7.

CONSULTATION PROCESS

EXECUTIVE SUMMARY

PART A AIRLINES

PART B GENERAL AVIATION

APPENDIX 1 PRICING TABLES AND EXAMPLES

APPENDIX 2 SUPPORTING INFORMATION

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