Australian ANZA airlines to pay New Zealand domestic safety levy

On 3 November 2009 the New Zealand Minister of Transport, Steven Joyce, announced that Australian airlines exercising ANZA privileges (they do not have to hold a separate New Zealand safety certificate and the direct oversight of their airline operations is carried out by the Australian Civil Aviation Safety Authority (CASA)) would have to make a contribution to the costs of running the Civil Aviation Authority of New Zealand (CAA) through a domestic levy of $1.66 per passenger sector when providing cabotage services. The CAA released a statement on 4 November 2009. This will mainly affect Jetstar (see previous post).

In similar circumstances when operating within Australia, New Zealand airlines, such as Airwork and Vincent Aviation, exercising ANZA privileges are already paying a fuel excise.

Earlier the CAA had issued a consultation paper and released a summary of submissions.

This follows the introduction of an Arrangement providing for mutual recognition of safety certification between Australia and New Zealand. This was originally envisaged when the Single Aviation Market was negotiated in 1996.

The ANZA mutual recognition provisions are in Part 1A of the Civil Aviation Act 1990 while the relevant levy-making provisions are in Part 4. The relevant Order in Council (the amended version is not yet available on the web) is the Civil Aviation (Safety) Levies Order 2002.

Media coverage included stories by the Australian correspondent for The Independent and Business Day, Denise McNabb on 23 October 2009 and 2 November 2009, and a story in the NZ Herald on 5 November 2009 which reported that Qantas was "furious".