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Wellington, March 19, 2020
Transport Minister Phil Twyford has outlined the first tranche of the $600 million aviation sector relief package announced earlier this week as part of the Government’s $12.1 billion COVID-19 economic response.
The initial part of the aviation package aims to secure the operators of New Zealand’s aviation security system, and includes:
Support to airlines
Financial support to airlines to pay passenger-based government charges for the next six months ($163 million) and to cover Airways related fees for the next six months ($37 million),
Any fee rises or pricing reviews from agencies that charge fees at the border (Ministry for Primary Industries, Civil Aviation Authority, Aviation Security Service, Customs, Airways) are put on hold for 12 months. Financial support for Airways with in the face of declining revenue ($70 million).
Mr Twyford said that the government recognises airlines and airports are being hit hard by the global COVID-19 pandemic and the package is about helping to keep money in their pocket.
“We are moving quickly to help by stepping in to fund things like traffic control and security screening that the aviation industry normally pay themselves and stopping any increases to fees for the next year. This package will see the Government temporarily fund these services while airlines experience customer decline,” he said.
Mr Twyford said that these first steps are designed to ensure that the essentials of the aviation system continue to run, help keep airlines in New Zealand and encourage them to increase services faster during the eventual recovery.
Eliminating red tape
“We are also committing to working with the sector and the CAA to ensure there is no red tape stopping airlines ramping services back up when international conditions improve. I have been speaking with industry leaders frequently and will continue to be in regular contact to make sure they have the support they need,” he said.
Mr Twyford said that the package is the first of its type and that further initiatives will be developed with the sector to keep critical air freight flowing and our airports open.
About Airways Corporation
Airways Corporation of New Zealand is the sole provider of air traffic services in New Zealand.
Passenger-based government charges include the domestic and international CAA and Aviation Security Service charges, the Customs and Excise Border Processing Levy and the Biosecurity Border Processing Levy.
The International Visitor Levy is not included as it is paid directly by passengers.
Source: Ministry of Transport, Government of New Zealand
