Consultation on Airways’ Pricing Framework begins

Airways started consultation today on the company’s Pricing Framework.

The Pricing Framework which defines the methodologies used by Airways to price services set out in the Service Framework, which was consulted on earlier this year.

“The Pricing Framework was last reviewed in 2012 so a review is neededto ensure it remainsfit for purpose,” says Graeme Sumner, Airways CEO.

“Ourprices are set against the Framework on a three-yearly cycle, with the next cycle running from 1 July 2022 to 30 June 2025.

“Before we set our prices for that period, weare seeking feedback on the Framework itself and a proposed change to the treatmentof ‘works-in-progress’ that will more closely align our approach to that of the Commerce Commission when calculating the capital charge,” he said.

A number ofminor areasin Airways’ Standard Terms and Conditionsthat require updating to comply with changes to legislation or reflect current practice have also been identified.

“With time and good planning, New Zealand and the aviation sector will bounce back from COVID-19. Airways’ primary focus is on supporting the long-term recovery of New Zealand’s aviation industry and its services to New Zealand by matching our services and pricing to the reality of the aviation sector now and into the future while, as always, maintaining aviation safety,” Mr Sumner says.

Consultation will close on Wednesday 1 December and will be followed by a two-week period where cross submissions can be made by Wednesday 15 December. All submissions will be made available on the Airways website.

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