2019 Pricing Consultation

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

In the longer term, Airways’ vision is to safely integrate UAVs into the existing aviation system. To achieve integration Airways will continue to work closely with government agencies to progress the necessary legislation and regulatory framework to support safe UAV operations. In parallel, Airways will work on developing a future funding model that fairly shares the costs of UAV integration. Airways proposed an average of $2.5m p.a. for UAV management to improve the safety of aircraft operating in and around controlled airspace while working towards a longer term solution for UAV integration. SUMMARY OF SUBMISSIONS Airlines generally supported Airways’ initiatives to improve safety, however all airlines felt that the funding should be shared to some extent with the regulator, government and the UAV industry. Aviation NZ questioned whether Airways’ proposed funding of $0.2m p.a. for education is enough. They submitted that we need more proactive education, for example banners at international airports and multi-language leaflets for international tourists. NZ Airports noted that airports also have a role in managing UAVs around airports and are equally concerned that a transparent approach for recovering costs has not yet been developed. AIRWAYS’ RESPONSE Airways’ prime focus over the 2019 - 2022 period is to enhance safety in and around controlled aerodromes. Airways feels it is appropriate for airlines to fund these activities because they have a direct benefit for airlines and their passengers. Education and regulation - There has been a significant increase in UAV incursions into controlled airspace as well as safety-related incidents with aircraft outside of controlled airspace. Airways has a new dedicated employee to engage proactively with the broader UAV community, including recreational, commercial and industrial users. The focus of this new dedicated employee will be to help educate and inform UAV operators of the rules, as well as to engage on future policy, operating model and infrastructure requirements to enable safe integration of UAVs into the existing aviation system. Future funding models - Airways’ investment for the 2019-2022 period will focus on airspace management and improved situational awareness for all aviation participants. Airways is developing tools that will deliver value to the broader UAV community. Once developed, Airways anticipates introducing charges for UAV users.

Figure 10 outlines the funding required in the 2019-2022 period to enhance safety.

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