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Civil Aviation Act 2023

International aviation - International air carriage competition

199: Minister may authorise international carriage by air

You could also call this:

"The Minister can let airlines work together on international flights if it helps the public."

The Minister can allow airlines to work together on international flights. You can think of this as airlines co-operating with each other to carry people or things by air. The Minister can say yes to this if the airlines are working together on a specific activity.

The Minister will only say yes if they think it will help achieve the main goals of the Civil Aviation Act 2023. They also need to think that the public will benefit from the airlines working together, even if it means there is less competition. The Minister must decide how long the permission will last and what conditions the airlines must follow.

When the Minister says what a "specified activity" is, they mean things like planning flight schedules or setting prices for tickets. It can also include things like loyalty schemes that reward frequent flyers, or special services like lounge access. The Minister's decision is based on the application and the rules of the Civil Aviation Act 2023, which you can find on the New Zealand legislation website.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS175880.

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Part 6International aviation
International air carriage competition

199Minister may authorise international carriage by air

  1. The Minister may, in relation to an application for an authorisation under this subpart, authorise a provision or provisions of a contract, an arrangement, or an understanding where—

  2. all parties to the contract, arrangement, or understanding are conducting international carriage by air in co-operation with each other; and
    1. the provision or provisions relate to—
      1. a specified activity carried out for the purposes of the co-operation; or
        1. an activity that is ancillary to a specified activity and that is reasonably necessary for the purpose of the co-operation.

        2. The Minister may grant an authorisation if the Minister is satisfied that—

        3. granting the authorisation will contribute to the main purpose or any of the additional purposes of this Act; and
          1. giving effect to the provisions of the contract, arrangement, or understanding to which the application relates will in all the circumstances result, or be likely to result, in a benefit to the public that would outweigh any lessening in competition that would result, or would be likely to result, from those provisions.

            1. When granting an authorisation, the Minister must—

            2. specify the duration of the authorisation:
              1. specify any conditions that apply to the authorisation.

                1. In subsection (1), specified activity means—

                2. the scheduling, capacity, or frequency of services:
                  1. the fixing of tariffs:
                    1. the conditions and benefits associated with tariffs:
                      1. frequent flyer schemes:
                        1. lounge access and other preferential services:
                          1. revenue sharing or profit sharing, or both.

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