Airways Corporation of New Zealand Limited Pricing for the 2019-2022 Period
AIRWAYS’ RESPONSE Airways will continue to apply circuit charges to each circuit flown. Airways’ circuit charges were introduced in 2013 to reflect the contribution of this activity to controller workload. It is important to signal, in prices to customers, the approximate cost to Airways of providing each service. This allows customers to decide whether or not to use the service. ADS-B
AIRWAYS PROPOSED
Airways’ proposal did not discuss the impact of ADS-B installation on the GA community.
SUMMARY OF SUBMISSIONS Aviation NZ’s submission referred to an Ernst Young report that identified Airways would avoid $20m of capital costs from the installation of ADS-B technology. Aviation NZ felt that Airways should partner with the CAA and Ministry of Transport to absorb ADS-B costs incurred by GA. Flying New Zealand also endorsed the view that Airways should subsidise the cost of GA ADS-B installation. One GA submitter said ADS-B should be compulsory for all airspace with a rebate for non-commercial aircraft. AIRWAYS’ RESPONSE The decision to mandate ADS-B transponders within controlled airspace rests with the MoT and CAA. Airways’ role is to provide the ADS-B surveillance infrastructure. In September 2017, Ernst Young released an analysis of ADS-B implementation which was commissioned by the CAA. The analysis identified that Airways’ would benefit from avoided capital expenditure because ADS-B surveillance technology is less expensive to implement than traditional radar surveillance. Airways’ capital expenditure programme, including the implementation of ADS-B surveillance, is being funded entirely by airline prices. It is appropriate that any offsetting capital expenditure savings are also reflected in airline prices. Airways will retain some radars for system security and resilience purposes, these will also be funded by airline prices.
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