13 submissions on delay to competition in air traffic control
Published19 Feb 1997
The Commerce Commission has received 13 submissions after it released a draft determination stating that, on the information currently available to it, it would not authorise arrangements which would allow Airways Corporation of New Zealand Limited to delay the introduction of competition for air traffic control services.
Commission Deputy Chairman Peter Allport said the deadline for submissions was yesterday evening, but late submissions will be accepted. Airways' late submission is expected this evening.
Airways currently uses a pricing system which allows cross subsidising with profits from services in which it has a monopoly, to services which are contestable.
It intends to change to pricing which would reflect the cost of providing each service, but it has asked for authorisation to delay this change until March 1 next year.
It also wants to prevent airports and aircraft operators using competitors' services until that date.
Mr Allport said that the Commission has been asked to look at the proposed delay, and is not authorising or investigating the new pricing structure.
An authorisation, if granted, would give Airways legal protection against any person taking court action if they thought the delay in changing air traffic control pricing breached the Commerce Act.
To grant an authorisation, the Commission must be satisfied that public benefits from the delay outweigh its detriments to competition. If it is not satisfied it cannot grant an authorisation.
To date, submissions have been received from: an individual pilot, Mr J.W.Peek, Aircraft Owners' and Pilots' Association (New Zealand) Incorporated, Tauranga District Council, ATCANZ Airports Ltd, Geyserland Airways Ltd, Waikato Regional Airport Ltd, Aviation Industry Association of New Zealand (Inc), Taupo District Council, Hawkes Bay Airport Authority, Wellington International Airport Ltd, Nelson Regional Airport Authority, Ardmore Airport Ltd and Serco Aviation PTY Ltd.
Copies of submissions will be available from the Commission's Wellington office tomorrow (Thursday, February 20).
Timetable of Commission process:
by February 25 experts employed by Airways and interested parties to make submissions
March 11-13 conference in Wellington to give Airways and interested parties opportunity to provide further information and the Commission to ask questions
by the end of March Commission to release final decision
Media contact: Communications Officer Vincent Cholewa
