Airways Corporation of New Zealand Limited Pricing for the 2019-2022 Period
AIRWAYS’ RESPONSE
CONSULTATION PROCESS
Airways addresses the comments and concerns for each item raised in submissions:
1. ILS at Dunedin and Wellington – The useful lives of the ILS assets at Dunedin and Wellington have already been extended to the point where if they are not replaced they will need to be decommissioned (April 2021 for Dunedin and April 2022 for Wellington). The decision to replace the ILS ultimately rests with the aerodrome operator, and NZ Airports (on behalf of Wellington and Dunedin airports) supports the replacement of ILS. Airways will continue to engage with stakeholders prior to the scheduled ILS replacements to investigate alternatives. However, given the airports’ current position it is appropriate to retain the ILS replacements in the capital plan. If an alternative solution can be found prior to the scheduled ILS replacements the resulting change in depreciation and capital charge will be reflected in future pricing periods. 2. Non-cooperative surveillance – There appears to be some confusion about the relationship between non-cooperative surveillance and the proposed UAV detection and management initiative, and the technology solution that Airways will invest in. This investment will replace the current PSR network with a new technology that will deliver the functionality of the current PSR network and provide a surveillance feed into the UAV management system to enhance UAV detection. 3. Main-trunk contingency network – This capital item represents the contingent surveillance network prescribed by the industry led forum, New Southern Sky (NSS). Airways will replace the existing Secondary Surveillance Radar (SSR) technology with the most cost-effective solution that meets the NSS requirements. Multilat is one of the technology options that Airways is considering. 4. Physical control towers – Airways agrees with Virgin’s comments that investments in physical towers should be restricted to critical safety and maintenance. The capital programme follows this approach. 5. Physical Navaids – The MON requirements have been determined by industry through the NSS forum. Airways’ capital plan for Navaids reflects the NSS directives. In response to NZ Airports’ request for Airways to delay the NDB withdrawal programme, Airways is committed to withdrawing NDBs and has challenged CAA’s requirements for technical alternates. Airways expects a favourable response from the CAA to be confirmed soon. 6. Wellington office fit-out – Airways’ decision to relocate from its Wellington office was made after the pricing proposal was prepared. This item has been removed from the capital expenditure plan.
EXECUTIVE SUMMARY
PART A AIRLINES
PART B GENERAL AVIATION
APPENDIX 1 PRICING TABLES AND EXAMPLES
APPENDIX 2 SUPPORTING INFORMATION
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