2019 Pricing Consultation

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

Appendix 1 – Pricing Tables and Examples

Airways’ required revenue is allocated to specific services and locations based on the cost of providing the services. This is done using the methodologies and cost policies set out in the Pricing Framework. Revenue for specific services and locations will be influenced by the: X X Underlying cost of each service and location. X X General price adjustments to reflect factors such as inflation and volume changes. X X Location-specific capital expenditure. The pricing formula set out in the Pricing Framework charges based on the weight of your aircraft; the heavier the aircraft the higher the price. Specific unit prices are set at a level that will collect the required revenue, using the expected volume forecast. The unit prices are detailed in Appendix 1.1 and are supported by the following resources that you can use to calculate the impact of the proposed changes on your own prices: X X Example price tables (refer to Appendix 1.2). X X An online price calculator to calculate the price of a journey using several of Airways’ services is available at: www.airways.co.nz/products-and-services/air- navigation-services/new-zealand-service-framework/current-public-consultation The table below shows the required revenue for specific services and locations and commentary to explain the change in required revenue.

CONSULTATION PROCESS

EXECUTIVE SUMMARY

PART A AIRLINES

PART B GENERAL AVIATION

APPENDIX 1 PRICING TABLES AND EXAMPLES

APPENDIX 2 SUPPORTING INFORMATION

Required revenue by service and location

$m

FY19 7

FY20 FY21

FY22 Comments

Aerodrome services Auckland

12.5

16.3

20.8 24.0 FCR and Digital Tower

8.4

Christchurch

8.9

9.2

8.9 Recent ILS replacement and inflation adjustment 11.0 Recent new tower and inflation adjustment

9.0

Wellington

11.0 12.2

4.9

Queenstown

4.3

4.3

4.1 No recent significant investment

2.2

Nelson

2.5

2.9

2.6 Recent new tower

1.9

Hamilton

2.1

2.2

2.2 Inflation adjustment

1.4

Napier

1.2

1.2

1.2 Current staffing issues and change in staffing mix

1.6

Dunedin

1.4

1.6

1.6 Inflation adjustment

1.6

Tauranga

1.8

1.8

1.8 Inflation adjustment

1.7

Palmerston North

1.7

1.8

1.8 Inflation adjustment

1.2

New Plymouth

1.2

1.3

1.3 Inflation adjustment

7. This was the required revenue set during the 2016-2019 pricing consultation.

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