Open aviation market licences for NZ airlines

The licensing authority, in this case the Secretary for Transport, grants open aviation market licences for New Zealand international airlines proposing to operate a non-stop scheduled international air service between New Zealand and Brunei, Chile, the Cook Islands, Luxembourg, Malaysia, Samoa, Singapore, Tonga, United Arab Emirates, United States of America or Australia (except as an airline under the Single Aviation Market with Australia, as separate criteria apply).

Open Aviation Market Licences for Single Aviation Markets

New Zealand international airlines can apply for an open aviation market 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.

These licensing requirements reference the Civil Aviation Act 1990.

The Civil Aviation Act 1990

There is currently no fee or application form for an open aviation market 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 plan to start the service.

We may also ask you to submit a schedule of full passenger fares.

Proof of ownership and control

You must show you are substantially owned and effectively controlled by New Zealand nationals by including affidavits in your application showing:

that 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
that no more than 25% of the airline is owned by a foreign airline (or foreign airline interest), and no more than 35% in total is owned by foreign airlines (or foreign airline interests)
that the airline is incorporated in, and its head office and operational base are in, New Zealand, and
if arrangements relating to the operation of the proposed service would, in effect, give control of the airline to a foreign interest.

To assess if the total paid-up capital is equal with the scale of the operation proposed, these minimum capital levels apply.

For B737 and A320 aircraft, the capital per aircraft operated is NZD 2 million.

For B747, B777 and B787 aircraft the capital per aircraft operated is NZD 4 million.

Proof of safety and security certification

In order to meet aviation safety and security requirements, you may need to hold an air operator certificate.

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

Then 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
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

Note that if an airline requires an air operator certificate, we can only grant an open aviation market licence after the certificate has been issued.

Proof of insurance

Before you starts services you must give the licensing authority 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.

You must:

meet the requirements of the relevant authorities of the other countries concerned
file a statement of the nature of your scheduled services operated pursuant to that licence for each IATA schedule period, and update the statement if there are changes
file periodic retrospective returns for additional non-scheduled (charter) flights operated over any routes covered by an open aviation market licence – airlines don’t need prior approval for such flights
file quarterly returns of the non-scheduled international flights that have been operated.

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 licensing authority grants a licence, the Minister of Transport is 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.

How long you can hold a licence for

An open market aviation licence for a New Zealand airline takes effect from the date stated in the licence and is normally granted for a specified period.

Continued ownership and control

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

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.

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, and
where the licensee seeks approval for a change or addition in the routes to be operated or points to be served, the licensing authority must apply the same criteria relating to international agreements and safety or security certification that are applied at the time 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 at the time an application is made for a new licence.

The licence renewal starts from the day the previous licence expires. The licence may be renewed for an indefinite or specified 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:

the service authorised by the licence has not started on the date specified in the licence
the Minister is satisfied that the service authorised by the licence is not being carried out 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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