2019 Pricing Consultation

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

SUMMARY OF SUBMISSIONS There was widespread support for the business transformation programme, however both Air NZ and BARNZ expressed disappointment in the lack of benefits delivered to date, and clearly stated their expectation that cost savings be delivered from FY23. Qantas Group and Virgin both said that costs should only be passed on to customers when benefits start to be realised. NZ Airports highlighted service issues at Napier, and said “it is alarming there is a lack of resilience at an airport level” and that the cost of disruption while in contingency operations cannot be over-estimated. One GA submitter did not agree with centralising staff, saying that Airways need locally based people in all areas. AIRWAYS’ RESPONSE Airways acknowledges the support for the business transformation programme and will continue to progress the initiatives proposed. This includes balancing the current en-route functions delivered from Airways’ Christchurch operational centre, between new Importance Level 4 (IL4) locations at Christchurch and Auckland. Airways understands customers’ concerns about the timing of benefits being delivered by the transformation programme. We remain committed to delivering the programme which will provide benefits in future pricing periods. Airways will continue to report on progress through the Scorecard to assure customers that the programme is on track. The business transformation programme is focused on the en-route and approach functions currently being delivered from a single operational centre in Christchurch. While the recent service disruptions at Napier have been caused by an unprecedented and rare set of staffing issues, Airways does share NZ Airports’ concerns about resilience at an airport level. These issues are being addressed as part of Airways’ Future Aerodrome Services initiative discussed in section 1.A.

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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