Stuff: ‘Unfair’: Proposed new fire and emergency levies could lead to higher airfares, aviation sector says

(Originally published by Stuff on May 21, 2024.)

Stuff: A new proposal to introduce fire and emergency levies on domestic aircraft would be “a major blow” to the aviation industry at a challenging time and likely lead to higher airfares and reduced services, the Aviation Industry Association (AIANZ) says.

Fire and Emergency New Zealand (FENZ) has proposed levying all domestic aircraft operating in New Zealand at 11.5 cents per $100 insured with an unlimited cap.

This means an aircraft valued at about $10 million would pay about $11,500 and a jet plane potentially more than $100,000, AIANZ said. Rescue helicopters would pay about $9000.

The association said the FENZ proposal, for which public consultation closed on May 17, came as a complete surprise.

The association said it was “disappointing” that the Department of Internal Affairs (DIA), which oversees FENZ, did not consult with the industry before a document on the proposal was publicly released.

Air New Zealand chief operational integrity and safety officer, Captain David Morgan, said the airline is concerned about the proposal. 

Air Chathams chief operating officer Duane Emeny said the proposed levies were “ludicrous” given the fees airlines are already paying for fire and emergency services.

Read the full article by Lorna Thornber here.

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