2019 Pricing Consultation

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

Enhanced services Airways is investing in new technologies and infrastructure that will support the new realities of air traffic management. The new investments will provide additional safety, resilience and flexibility benefits. These investments include: X X The implementation of a full digital tower service at Invercargill and a digital tower service at Auckland. This was strongly supported by customers. Airways will continue to investigate the viability of deploying this technology at other regional locations in future price periods. X X Supporting Auckland International Airport Limited’s (AIAL’s) implementation of a Flexible Contingent Runway (FCR). Airways has listened to customer submissions on the need for an FCR. If AIAL decides not to proceed with this project, Airways will review the associated capital expenditure and make an adjustment to prices in FY21 and FY22. X X Detection and management of UAVs to enhance the safety of controlled airspace around aerodromes. This has a direct benefit for airlines and their passengers. Airways understands customers‘ concerns that funding should be shared with other industry participants and will continue to work towards developing alternative funding methods for future pricing periods. Business transformation, including ATM platform replacement Airways is committed to the implementation of the transformation programme presented in the 2016 Pricing Consultation document. The transformation programme will improve the safety, resilience and flexibility of services delivered. The business transformation focuses on the people, technology and buildings required to deliver interoperable services from Auckland and Christchurch. Submissions indicated that customers support the initiatives but note that the programme benefits have been delayed. Airways is committed to delivering the programme benefits from FY23. Capital to maintain current services Airways has a mature approach to asset management, which focuses on preventative maintenance and performance monitoring to maximise the useful life of assets. Airways proposed $92.9 million of capital projects to ensure the current target service levels are maintained. There was general support for the capital programme with a few exceptions about individual capital items. Following customer submissions, Airways has had discussions with stakeholders and is satisfied that the proposed capital programme is required.

CONSULTATION PROCESS

EXECUTIVE SUMMARY

PART A AIRLINES

PART B GENERAL AVIATION

APPENDIX 1 PRICING TABLES AND EXAMPLES

APPENDIX 2 SUPPORTING INFORMATION

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