NZ skies open further for overseas airlines

The government is seeking more overseas involvement in the aviation industry to help develop the economy and increase business and travel opportunities for New Zealanders.

A discussion document on New Zealand’s International Air Transport Policy proposes removing limits on foreign ownership of New Zealand airlines – currently 25% ownership by any one foreign airline or 35% by foreign airlines in total.

However, Air New Zealand will be exempted from this policy. The government will retain a 51% shareholding after a proposed selldown.

Transport Minister Gerry Brownlee says, “Although good progress has been made in removing barriers to New Zealand’s international air services, it is 14 years since the policy was last reviewed and much has changed in this dynamic sector during this time.”

Under the proposed policy, international airlines would continue to be given opportunities to provide their customers with better access to New Zealand’s key passenger and goods markets, and to global supply chains.

New Zealand would continue to pursue reciprocal open skies agreements, except where it is not in its best interests. It would recognise the benefit to the country of new or additional services by foreign airlines, while ensuring New Zealand airlines have a fair and equal opportunity to compete.

“It is important to note that changes to the ownership of Air New Zealand are not being considered as part of this review,” Mr Brownlee says.

“The government remains committed to holding a majority share in the company and the Kiwi-share controls in Air New Zealand’s constitution will continue to take precedence over any changes to general policy.”

Immediate priorities for negotiating new air services agreements will focus on East Asia and South America. Successful negotiations have already been completed this year with Japan and China, and are currently underway with Brazil and French Polynesia.

“Over time, as new airlines enter the New Zealand market, this is likely to lead to more services and cheaper airfares,” he says.

Submissions on the policy review discussion document are due by Monday June 18.