The Commerce Commission has received Airways Corporation of New Zealand's new timetable for introducing competition for air traffic control services by August 15.
Commission Chairman Dr Alan Bollard said that the Commission has been investigating Airways for alleged breaches of the Commerce Act. The investigation centred on Airways' pricing system which allows for cross subsidisation from air traffic control services over which it has a statutory monopoly, to services which are contestable.
Dr Bollard said that Airways is making progress to change its pricing system and, at the moment, the Commission does not intend to take enforcement action against it.
Airways had previously applied to the Commission for authorisation to delay the new pricing system until March 1 next year. An authorisation, if granted, protects a business practice from court action under the Act.
In January the Commission issued a draft determination stating that, on the information then available to it, it would not grant the authorisation. A draft determination is not a final decision, but gives the applicant and interested parties a clear indication of how the Commission views an issue, so that submissions can be made to provide further information and address areas of concern.
The final decision was to have been made in March, but, in February, Airways withdrew its application. The Commission then decided to continue its investigation of the delay as a possible breach of the Act.
The Commission's decision to monitor Airways' proposed new timetable is not an authorisation and does not provide legal protection.
The timetable for change is:
by April 30 Airways will have calculated the resources required for the provision of aerodrome services at each location.
by June 30 Airways will have completed consultation with aircraft operators regarding proposed changes to Airways' charges. It will also consult with other interested parties.
by mid-July Airways will publish revised charges for the provision of aerodrome control services on a location specific basis and the requisite one month's notice to aircraft operators will be given.
by August 15 Revised charges will take effect.
The specific charges for each service are a matter for Airways and its customers to determine. The Commission's involvement, through the Commerce Act, is to have any cross subsidies removed and for there to be the potential for competition.
Dr Bollard said that the Commission expects Airways to meet the timetable and will continue to closely watch Airways' progress towards the new system. If progress is not satisfactory, then the Commission will have the option of considering enforcement action against Airways.
