On June 6, the New Zealand government announced an independent review of the country's air navigation system. However, the announcement gives little insight into the review's terms of reference or what, if any, problem it is setting out to solve.

One year in, and the review is set to start

Nearly a year ago, this review was first announced by New Zealand's transport minister, Michael Wood. The initial focus was on 'Scoping the Air Navigation System Review,' with a call for submissions from industry stakeholders and interested parties. The air navigation service provider (ANSP) is Airways NZ, a state-owned enterprise that has to balance its commercial viability with service delivery and national interest obligations. Other significant stakeholders are Air New Zealand, Jetstar, Qantas and the major airports in Auckland, Wellington and Christchurch.

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New Zealand Airports Association is very interested in how air navigation services may change after the government review is completed. Photo: Getty Images

New Zealand Airports Association (NZAA) is the industry body representing 42 airports across the country, and it welcomed the review of the air navigation system. In July 2021, CEO Kevin Ward said: "We think there are some areas of mismatch between the needs of a safe, efficient and reliable national air transport network and how it is set up and funded at the moment." He added, "There is significant tension between the requirements of Airways NZ to operate on a fully commercial basis and the need for ongoing services in parts of the network that have lower traffic levels and less ability to pay directly for local services."

Simple Flying spoke with Ward today, and he confirmed that yesterday's announcement was part of the same process that has taken nearly a year to get to the actual review phase. From an airport perspective, he says that "it needs to be a review of the way airspace has been used for the last 30 years, covering everything from air navigation to the beacons that allow you to fly around the country." He added, "there are some cracks in the system that highlight that the previous, very commercial model may not be fit for purpose."

"As a state-owned enterprise, Airways might be withdrawing from some services on a commercial basis when those services are required in the national interest. There are areas where re-investment is required that may not fit in a purely commercial model."

Need to balance both commercial and public obligation interests

Air Traffic Control
Photo: Getty Images

Since July, policymakers have focused on identifying the core components of the air navigation and air traffic control system, the providers of those components, the users, who benefits from the system and how is it regulated. A review board has now been appointed, and Wood says he is confident the panel will work with all stakeholders to understand where the gaps are, where improvements can be made, and what needs to be done to ensure a strong air navigation system. Wood said:

"Since the current system was implemented in 2012, we have seen advancements in technology, the security environment, and changing demands and expectations. therefore it's time we look at all parts of the system to make sure it continues to serve us well into the future."

New Zealand is a sparsely populated country where communities are widely dispersed with challenging terrain. Aviation plays a vital role in keeping the country connected, and providing air navigation services in this environment will not always pass the user-pays principle. It will be interesting to see if remote tower technology finds its way into the landscape, as it is already doing in Europe and the US.

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