Airways Corporation of New Zealand Limited Pricing for the 2019-2022 Period
Submissions on other airline topics This section summarises and responds to submissions on topics that were not directly raised in the Pricing Proposal. Each topic summarises the submissions received and Airways’ response.
Pricing Framework topics
AIRWAYS PROPOSED
Airways’ proposed prices were calculated using the Pricing Framework that was implemented in 2012, following extensive consultation with stakeholders.
SUMMARY OF SUBMISSIONS Some submitters raised issues that would require changes to the Pricing Framework. Most of these submissions related to the timing of new charges, which are not consistent with the Economic Value Added (EVA) methodology outlined in the Pricing Framework. AIRWAYS’ RESPONSE The Pricing Framework has now been used as the basis for setting prices for three pricing periods. Airways acknowledges the submissions received and agrees that it is appropriate to review the Pricing Framework. Airways will undertake a project in the 2019-2022 pricing period to consider whether the Pricing Framework is still achieving the objectives and principles established in 2012. If there is merit in making changes to the Pricing Framework Airways intends to consult with stakeholders and apply the updated framework in the 2022-2025 pricing period.
Regional sustainability
AIRWAYS PROPOSED Airways’ proposed pricing for the 2019-2022 period included increases to charges at Kapiti and unattended locations. The proposed price increase at Kapiti was driven by declining volumes, while at unattended locations the price increase was driven by a combination of lower volumes and increasing costs.
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