New Zealand: Aviation industry believes pricing proposals are a ‘threat to airfares’ and operators

The aviation industry believes proposed pricing changes by the Civil Aviation Authority will be “detrimental” to the industry and put some operators at risk of going out of business. The CAA is undergoing a pricing review which proposes to increase aviation safety and security levies, fees and charges, to re-establish a sustainable funding model for the two years from July 2025. These changes include increasing passenger safety levies by $2.34, domestic passenger security levies by $4.36 and the international passenger security levy by $9.42. There would be a 47% increase to other levies, fees, and charges. The Aviation Industry Association (AIANZ) told Stuff Travel the proposal was the “single biggest threat to airfares”. Association CE Simon Wallace said, if the proposals go ahead, all domestic airlines will have no option but to pass on the increase to customers. “The CAA Pricing Review will also have a detrimental impact on other parts of New Zealand’s aviation industry.” The CAA’s funding model was last reviewed in 2017, with some passenger levies revised in 2019. A review of levies, fees and charges in 2020 was suspended due to the pandemic. Since then, the CAA has received extra Crown funding to meet shortfalls, but that will end on June 30, 2025.<br/>