Many other countries, including Australia, already publish similar reports. The ministry intends to publish the first performance report in early September.
Air New Zealand publishes OTP data on its own website (which earlier this year showed performance was slipping) but only quarterly. Jetstar also publishes figures on its own website - using a monthly time frame which makes comparisons difficult - and said it would welcome greater transparency across the country’s aviation sector.
Air NZ’s chief operating officer, Alex Marren, the airline welcomed Brown’s commitment to a thriving aviation sector.
‘‘Getting our customers safely where they need to be and when they need to be there is our priority. We know that being on-time is important to our customers and we strive to deliver on this expectation every flight.’'
She said regulatory settings for airports also needed to be reviewed.
The Herald in May called for more data to be released through official channels and other measures to enhance passengers’ rights.
Brown said that in addition to on-time performance data, officials are exploring options to introduce public reporting on airfares.
“This would further enhance transparency in the sector, empowering consumers with the information they need to make informed decisions and encouraging greater competition within the market.”
Brown said there would be a renewed focus on the CAA.
“To that end, I recently announced a refresh of the CAA board. This new leadership is dedicated to delivering better outcomes for the industry, including reducing processing times for certifications, particularly in the rapidly evolving area of emerging aviation technologies.”
Today, the CAA is opening consultation on changes to its fees, levies and charges.
These changes include a $2.34 increase to passenger safety levies, a $4.36 increase to the domestic passenger security levy, a $9.42 increase to the international passenger security levy and a 47% increase to other levies, fees and charges.
“While I fully recognise the essential role the CAA plays in maintaining the safety and security of our skies, I want to make one thing very clear – these proposed increases to fees, levies, and charged must be fully justified and paired with demonstrated accountability,” Brown said.
The minister said he had requested a detailed review of the evidence to support these changes.
“It is imperative that we explore every possible avenue for cost savings and efficiencies before passing additional costs on to the industry and travellers. However, it is also crucial that the CAA transitions away from relying on taxpayer-funded liquidity facilities.”
Since 2020, the Government has provided nearly $500 million of funding to the CAA to maintain service levels, due to a sudden loss of revenue from passenger levies because of the pandemic.
These levies haven’t changed since 2017 for the CAA and 2019 for the Aviation Security Service.
Brown acknowledged levies would rise because of inflation, changing security standards, and other cost pressures.
Airport reaction
The NZ Airports Association has welcomed the moves as potential gamechangers for travellers.
“Under the minister’s leadership we are seeing action on two issues airports have been raising for many years,” NZ Airports Chief Executive Billie Moore says.
There had been a constructive relationship with AvSec on dealing with security screening queues over the past 18 months, but this experience has reinforced airports’ longstanding view that there has got to be a better way to deliver screening services around the country.
“Airports want to be part of the solution. This consultation process will allow us to assess whether airports could deliver some screening services more flexibly and at lower cost,’' said Moore.
By establishing a monthly performance report for airlines, the minister was finally giving New Zealand consumers access to information other countries have had since the 1990s.
‘‘The commitment to explore airfare monitoring is hugely welcome and a critical next step for dealing with the lack of competition in the domestic network. These initiatives could be gamechangers for our system. We look forward to supporting them in any way we can,” she said.
Air NZ’s Marren said the Government should also take a closer look at airports.
‘‘One of the major costs for consumers going forward relates to airport charges which airlines have very limited ability to influence due to the current regulatory settings which are not working. Air New Zealand considers regulatory change is urgently needed to manage further cost increases for Kiwis and visitors to New Zealand.’'
Grant Bradley has been working at the Herald since 1993. He is the Business Herald’s deputy editor and covers aviation and tourism.
