CAA Review of Fees, Levies and Charges (01 July 2025 to 30 June 2027)
3 February 2025
To recap, these are the new fees, levies and charges.
- Passenger safety levy $3.92.
- Domestic passenger security levy $10.91.
- International passenger security levy $22.30.
- All other levies, fees and charges increase by 10%.
Good for some, not so good for others.
The AIANZ is pleased the Minister of Transport and CAA have heeded the calls of the commercial aviation industry and decided that fees, levies and charges for many operators will increase by no more than 10% compared to the initial 43% that had been originally proposed in the consultation document in October 2024. This is good news for parts of our membership and a ‘win’ off the back of the advocacy led by AIANZ and its member divisions.
The increases for the passenger safety levy, the domestic passenger security levy and the international passenger security levy are significant and unchanged from the original consultation proposal with increases of more than 100%. This is not so good for others in our membership, particularly scheduled airlines, many of whom operate in regional parts of the country.
It is these routes to regional New Zealand that are under threat because the increase in passenger levies. It is another hit on top of airport and landing charges, the cost of parts and general costs relating to maintenance and overhaul that all our members are feeling. Only so many cost increases can be passed on to customers before they walk, quite literally, and stop flying.
For all these reasons, the AIANZ has taken special interest in the CAA’s comments that “Cabinet has approved the pricing rates as maximums and allowed flexibility for reductions, should further opportunities for efficiency be identified over the next two years. Any reductions to the levels being implemented will be notified no later than 30 days ahead of them coming into effect, on 01 July 2025”.
This suggests to us that Ministers are signalling to the CAA, they expect further savings to be found. The AIANZ will be monitoring this situation and using every opportunity to push for further savings.
The AIANZ is pleased that work will commence shortly on a First Principles Funding Review that will replace the current regime by 1 July 2027. It is essential that a thorough analysis is done of the way fees, levies and charges are set and the Association welcomes involvement in this work as soon as possible.
In the meantime, the team at the CAA has kindly provided a translation of the new fees, levies and charges as they apply across our membership. These are set out here.
Please note:
- Parts 141 and 102 also rise 10% – they are covered through hourly charges under Part 5 in the third table
- The standard hourly rate (increased by 10%) of $312.40 including GST does covers all categories in the third table on page 3
You can also read the former Minister of Transport Simeon Brown’s statement here and the CAA Director Keith Manch’s statement here.
Read AIANZ lodges detailed submission to CAA Pricing Review opposing all options here.
End.