International air services licences for NZ airlines

New Zealand international airlines can apply for an international air services licence.

A New Zealand international airline is a New Zealand air transport enterprise that offers or operates a scheduled international air service or intends to offer or operate one.

A scheduled international air service is a series of flights that transport passengers, cargo or mail between New Zealand and one or more points in any other country or territory. The flights must be:

regular or frequent enough to be considered a systematic service, even without a published timetable, and
open to use by members of the public.

Airlines planning to fly only between New Zealand and Brunei, Chile, the Cook Islands, Luxembourg, Malaysia, Samoa, Singapore, Tonga, United Arab Emirates, United States of America may do so under an open aviation market licence. Note that for flights to and from Australia, separate criteria apply to airlines that operate under the Single Aviation Market.

Open aviation market licences for New Zealand airlines

Open aviation market licences for Single Aviation Markets

Contact us before you apply to discuss the availability of air traffic rights and other relevant matters.

Send 2 copies of your application to:

Courier:
The Ministry of Transport
Economic Regulation Team
3 Queens Wharf
Wellington
New Zealand

Post:
The Ministry of Transport
PO Box 3175
Wellington 6140
New Zealand

Email: airservices@transport.govt.nz

Telephone: +64 4 439 9000

Some air services agreements specify the number of flights and routes that can be operated.

If there is no air services agreement between New Zealand and the country concerned or there is no unallocated capacity under an existing agreement, you can make a formal request to the Ministry, with supporting information, for New Zealand to negotiate the rights.

These licensing requirements reference the Civil Aviation Act 1990.

The Civil Aviation Act 1990

There is currently no fee or application form for an international air services licence.

Your application must include information for each service you plan to operate, including:

the route you will follow, including all places to be served by your route
the type of aircraft you will operate and, for passenger services, its seating configuration
how often the service will fly every week
details of any code-share arrangements
the airline code and flight numbers to be used on each route
the date you intend to start the service
a schedule of full passenger fares, and
any required safety and security certification.

Proof of ownership and control

You must show that the airline is substantially owned and effectively controlled by New Zealand nationals. Include affidavits in your application showing that:

the airline is incorporated, and its head office and operational base are in New Zealand
New Zealand nationals:
own at least 51% of the paid-up capital of the airline, and that, for passenger airlines, the total paid-up capital is equal with the scale of the operation proposed, and
have effective control of the airline by holding a majority of the positions on the board, including that of chairperson — in addition, if services are to be provided to Australia, at least two-thirds of the board positions must be held by Australian or New Zealand nationals
no more than 25% of the airline is owned by a foreign airline, or foreign airline interest
no more than 35% in total is owned by foreign airlines or foreign airline interests.

If arrangements relating to the operation of the service would, in effect, give control of the airline to a foreign interest you must declare this in the affidavit.

Proof of safety and security certification

In order to meet aviation safety and security requirements, you may need to hold an air operator certificate. Airlines that intend to code-share, and not operate their own aircraft, do not need a certificate.

To apply for a certificate you can contact the Manager Flight Operations — Airlines at the Civil Aviation Authority (CAA).

Fill out an application form and send it together with the fee to the Director of Civil Aviation.

Part 119 Air Operator Certification

How to contact the CAA

Courier:

Civil Aviation Authority
Level 15, Asteron Centre
55 Featherston Street
Wellington 6011
New Zealand

Post:

PO Box 3555
Wellington 6140
New Zealand

Email: info@caa.govt.nz
Fax: + 64 4 560 9452
Telephone: +64 4 560 9400

If you must have an air operator certificate, we can only grant an international air services licence after the certificate has been issued.

Proof of insurance

Before you start services you must give us proof of insurance. The insurance must cover any liability that may arise from or in connection with the operation of the services in respect of death or bodily injury, or of property damage.

We can ask airlines at any time to supply proof that their insurance is current.

Financial ability and experience

The licensing authority must be assured you have the financial ability to carry out the proposed service and be likely to do so satisfactorily.

With your application, include:

a business plan for the airline that sets out its objectives and the resources available to achieve them, including the airline’s:
- total amount of paid-up capital at the time it is expected to start services
- any banking accommodation arranged, and
- any planned capital-raising programmes
a budgeted statement of the airline’s financial performance for the first year of operation in table format showing income and expenditure levels itemised by major items, together with a schedule that sets out the key assumptions made to get those figures, for example, flight frequency, load factors, fares and rates to be charged
a statement of financial position that shows the airline’s different forms of assets and liabilities immediately before the application date and as predicted over the airline’s first year of operation
a cash flow analysis on a month-by-month basis for the airline’s first year of operation, and information on the financial arrangements to deal with any months with negative cash flow
a list of commitments and guarantees given by the airline or its directors and management team, together with contingent liabilities, and
a summary of airline senior management’s relevant qualifications and work experience— you do not need to include technical and operational personnel assessed by the CAA.

Competing claims for air traffic rights

Under a number of New Zealand’s bilateral air services agreements there is restricted capacity that can be allocated to New Zealand international airlines. Under some agreements each country can only designate 1 airline.

If this is the case, it is possible for the available air traffic rights to be subject to competing bids from New Zealand airlines. Applications for international air service licences must include to what extent:

the proposed services would contribute to the development of a competitive environment on the routes concerned
an airline’s proposed services would facilitate increased inbound tourism, and trade and investment — the level of promotion, market development and investment the airline proposes
an airline has the ability to satisfy consumer interests in terms of:
- degree of choice, for example frequency, aircraft type, product range generally
- efficiency, for example in lower tariffs and improved standards of service, and
- consumer service innovation
where a dedicated freight service is proposed, such a service would contribute to trade development, in particular, export markets, and, where relevant, the economic benefit relative to a combination passenger and freight service.

The licensing authority considers the information airlines provide. They may:

refuse a licence application, or
grant it wholly or in part, and subject to such conditions as they see fit.

If an airline’s application meets all the requirements, a decision is normally made within 2 months of us receiving the application.

Public notice that an application has been received

When an application is received, we put a notice in the New Zealand Gazette and may send copies to interested parties.

The notice outlines the services proposed, including route, frequency, aircraft and any other relevant details. No confidential financial information is released. Anyone can make a submission about the variation to the licensing authority within 21 calendar days of the notice being published

Applicants are given the opportunity to comment on any submissions received. The licensing authority must take any submissions and the applicant’s responses into account when considering a variation.

New Zealand Gazette <link>

International agreements

The licensing authority must refuse to grant a licence if granting it would be contrary to:

the air services arrangements between New Zealand and any other countries involved, or
any other international agreement, convention or arrangement New Zealand is a party to.

Designation

We will consider designating and licensing airlines based in New Zealand that are primarily under the safety supervision of the New Zealand Civil Aviation Authority (CAA), but have more than 49% foreign ownership if:

you propose operating services as a New Zealand international airline, and:
all of your proposed services are offered in accordance with air service agreements with other countries that would:
- reasonably be expected to accept New Zealand’s designation of the airline, and
- issue an operating authorisation to such an airline.

You must:

meet the requirements of the relevant authorities of the other countries or territories concerned
file a statement of the nature of your services for each IATA schedule period, and update the statement if there are changes.

Public notice a licence has been granted

When a licence is granted, a notice is put in the New Zealand Gazette.

New Zealand Gazette

Notifying affected countries

Designation is the official procedure when a government advises its bilateral partners of an airline that can exercise the traffic rights negotiated between them.

If the Minister of Transport grants a licence, they are advised to designate the airline in accordance with the provisions of the relevant bilateral air services agreement. The government of each country concerned is then notified.

Border agency requirements

All airlines operating services to and from New Zealand must meet the requirements of the New Zealand border agencies.

New Zealand border process for airlines

You must start the services authorised by your licence within 12 months of the date the licence is granted.

If your services have not started within that time, we consider whether to withdraw the rights so they are available to allocate to other New Zealand airlines.

If you do not start the services authorised by the licence, we can revoke it.

How long you can hold a licence for

If you are granted a scheduled international air service licence, it takes effect from the date stated in the licence and is normally granted for a period of 5 years. However, in some circumstances a licence may be granted for a shorter term.

Continued ownership and control

To continue operating, you must continue to be substantially owned and effectively controlled by New Zealand nationals.

Reviewing licence entitlements

We review licence entitlements periodically and may withdraw rights that have not been used within the previous 12 months.

At any time, the licensing authority may amend, suspend or revoke any of the licence terms and conditions or add any new terms or conditions they think are necessary.

How to apply for an amendment to a licence

You can apply to the Secretary of Transport for a licence to be amended, however you may wish to contact us first to discuss the proposal. If there is no air services agreement between New Zealand and the country concerned, or there is no unallocated capacity under an existing agreement, you can send us formal request, with supporting information, for New Zealand to negotiate the rights.

Licence amendments are subject to these conditions:

where it is proposed that this power be exercised on the licensing authority’s own motion, the licensing authority must give an airline at least 21 calendar days’ notice in writing of this intention
an airline may seek a change or addition in the routes operated, or an increase in the capacity of the services provided, only if it intends to start services on the changed or additional routes or use the increased capacity within 12 months of the date its application is determined on
in addition, where any proposed variation involves a change or addition in the routes to be operated, or an increase in the capacity of the services provided, notice of the licensing authority’s intention to consider such a variation is given in the New Zealand Gazette – the notice also states the licensing authority will receive written representations relating to the proposed variation within 21 calendar days of the notice being published
the licensing authority must take any representations into account when considering a variation, and airlines are given the opportunity to comment on any representations received – responses are also taken into account by the licensing authority, and
the licensing authority must apply the same criteria relating to international agreements and safety or security certification that are applied when an application is made for a new licence.

When a licence’s terms or conditions have been varied, notice of the variation, including its terms, is given in the New Zealand Gazette.

How to renew a licence

If your licence has been granted for a specified term, you must apply to renew the licence at least 3 months before the licence expires.

The process is similar to applying for a new licence and must be lodged with the Secretary of Transport.

The renewal application must include the same information that is required when applying for a new licence. The licensing authority must apply the same criteria that are applied when an application is made for a new licence.

We put a notice of the licensing authority’s intention to consider renewal in the New Zealand Gazette – anyone can make a submission about the variation to the licensing authority within 21 calendar days of the notice being published

Applicants are given the opportunity to comment on any submissions received. The licensing authority must take any submissions and the airline’s responses into account when considering a variation.

The licence renewal starts from the day your previous licence expires. The licence may be renewed for 5 years or a shorter term.

When a licence may be suspended or revoked

The Minister of Transport may suspend your licence if they are satisfied you have breached any licence conditions. The Minister may suspend the licence for as long as they like.

The Minister may revoke a licence if:

you have not started the service authorised by the licence on the date specified in the licence
the Minister is satisfied that you are not carrying out the service authorised by the licence in a manner that meets the terms and conditions of the licence
the service authorised by the licence has been terminated
the licence was granted under or in accordance with a convention, agreement, or arrangement between the New Zealand Government and the Government of any other country and:
- that convention, agreement or arrangement has been terminated or has ceased to bind either government, or
- circumstances have occurred or a condition has been met that means the Minister, or the New Zealand Government, can revoke the licence.

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