2019 Pricing Consultation

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

3.  Capital to maintain current services AIRWAYS PROPOSED

To maintain the current level of service, Airways proposed a $92.9m capital programme. The programme was summarised by location and service with full details of the programme outlined in the appendices of the Consultation Document.

SUMMARY OF SUBMISSIONS

There was general support for the capital programme with the following exceptions:

1. Instrument Landing System (ILS) at Dunedin and Wellington – Air NZ, Virgin, BARNZ and IATA all submitted that the ILS should not be replaced. NZ Airports was the only submitter to explicitly support the replacement of ILS to address resilience, allow for operators that have not adopted newer technologies and allow time for the performance of new technologies to be proven. 2. Non-cooperative surveillance – Air NZ questioned whether the non-cooperative surveillance was a double up when considering the proposed spend on UAV detection and management. IATA does not support ongoing investment in Primary Surveillance Radar (PSR) in lieu of other superior alternatives. 3. Main trunk contingency network – Air NZ questioned whether the main trunk contingency network could be deferred to allow for alternative technology solutions such as multilat. 4. Physical control towers – Virgin does not support any investment in physical control tower assets beyond spend for critical safety and maintenance. This includes the Auckland tower where its view is that the life of the physical tower should be extended until a digital service will be implemented. 5. Physical Navaids – Virgin does not support the replacement of physical Navaids beyond the Minimum Operating Network (MON). Virgin has also encouraged Airways to consult with industry to review the MON. IATA also supported this view, and specifically commented on the DVOR/DME replacements. NZ Airports have submitted that Airways’ Non-Directional Beacon (NDB) withdrawal programme should be delayed until the Civil Aviation Authority (CAA) has finalised the rules for aircraft operating under Global Navigation Satellite Systems (GNSS). 6. Wellington Office Fitout – Virgin does not support the Wellington office fitout. 7. Vehicle fleet – Virgin requested more detail about what this includes to ensure the vehicle fleet is fit-for-purpose. 8. Resource planning system upgrade and a rostering solution – Virgin requested that Airways explain the difference between the two projects.

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