\u201cAs far as I know, it\u2019s unprecedented,\u201d CAA board chairman Mark Darrow said of the proposed levy cuts.<\/p>\n
The CAA has suggested the domestic passenger security levy drop from $10.91 to $10.36 per passenger.<\/p>\n
International levies would go from $22.30 to $21.19. The figures exclude GST.<\/p>\n
Air New Zealand in the last financial year carried 5.962 million international and 10.048 million domestic passengers.<\/p>\n
The proposed cuts, if applied to those volumes, would save the airline $14.43 million a year.<\/p>\n
Airlines have repeatedly complained about aviation system costs, which include airport and air traffic control charges and the CAA levies.<\/p>\n
The CAA estimated the proposed cuts would reduce levy collections by $70.935m by the 2032\/33 financial year.<\/p>\n
The levies are paid per passenger, regardless of flight distance or duration. <\/p>\n
They are collected for the CAA\u2019s Aviation Security Service (AvSec), which operates security screening at airports.<\/p>\n
Darrow told the Herald levies did not increase for several years around the Covid era, when aviation activity drastically slowed down.<\/p>\n
\u201cSo we had a big catch-up 12 to 18 months ago.\u201d<\/p>\n
He said better technology and rostering had since delivered savings.<\/p>\n
The breakthrough included new scanning technology, which Darrow said \u201chad a profound effect\u201d.<\/p>\n
The days of removing laptops from bags before screening appear to be numbered.<\/p>\n
Better 3D technology allowed AvSec staff to view scans and tell if an object was a legitimate piece of technology or a suspicious object.<\/p>\n
The technology could potentially allow security staff to work remotely.<\/p>\n
\u201cSo far we\u2019ve taken it into nearby offices.\u201d<\/p>\n
Darrow said a smarter rostering system had cut overtime costs too.<\/p>\n
The CAA said an average of 97% of passengers were screened in less than 10 minutes.<\/p>\n
That 10 minutes was from the point a passenger joined the queue to the point they were cleared by security to proceed to the gate.<\/p>\n
Darrow said the CAA had made no recent layoffs or staff cuts to save money. <\/p>\n
\u201cThere\u2019s natural attrition but we\u2019re just making rosters better.\u201d<\/p>\n
Lidar (light detection and ranging) technology had also improved queue processing times, Darrow said.<\/p>\n
The system was effective for foot traffic management as it detected customer movement and could show AvSec when it was time to open more screening capacity.<\/p>\n
The consultation starting today is only on domestic and international passenger security levies.<\/p>\n
Other CAA safety and security fees, charges and levies will be considered separately through a different review, with broader public consultation expected in mid-2027.<\/p>\n
Darrow said those other fees and charges included certifications for airlines, pilots and airports.<\/p>\n
Associate Transport Minister James Meager said the Government had committed to reduce levies once the CAA stabilised after Covid.<\/p>\n
He said the CAA\u2019s cash reserves had recovered faster than expected.<\/p>\n
\u201cIt is now in the position to charge airlines less while continuing to meet aviation security expectations and performance targets,\u201d he said.<\/p>\n
\u201cAt an individual passenger level, the amount may feel modest, but when considered collectively the benefit to airlines of being able to invest that money elsewhere will be significant.\u201d<\/p>\n
Kane Patena, director of Civil Aviation and CAA chief executive, said the proposal showed the authority was focused on delivering good safety and security in a cost-effective way.<\/p>\n
\u201cAviation is facing real cost pressure. We cannot control every cost in the system, but where CAA can sustainably charge less while continuing to deliver strong security services, we will.<\/p>\n
\u201cWe have also strengthened our financial position, rebuilt appropriate reserves, and updated passenger forecasts also give us greater confidence in future revenue.\u201d<\/p>\n
Patena said those factors meant the CAA was confident now was the right time to test a 5% reduction in passenger security levies. <\/p>\n
The CAA said proposed cuts would not impact its ability to meet performance targets for aviation security services.<\/p>\n
It planned to start targeted consultation with parties including Air New Zealand, Jetstar and the Airports Association, today.<\/p>\n
That consultation would continue until noon on October 14. <\/p>\n
Aviation Industry Association (AIANZ) chief executive Simon Wallace welcomed the move.<\/p>\n
He said it provided an opportunity for airlines to pass on savings to travellers, but he said passenger security levies were only part of the story.<\/p>\n
\u201cAirports must be subject to greater scrutiny of their charges as they directly benefit from any increase in passenger numbers.\u201d <\/p>\n
Wallace also said Airways, responsible for air traffic control, should be assessing its levies.<\/p>\n
He said the industry wanted next year\u2019s funding review to assess other CAA charges and levies.<\/p>\n
\u201cFurther savings must be made to provide relief to an industry that has been challenged by astronomical increases in fuel costs this year\u201d.<\/p>\n