Plain language law

New Zealand law explained for everyone

Civil Aviation Act 2023

Airports - Airport operators

231: Airport operators must consult concerning capital expenditure plans

You could also call this:

"Airport operators must discuss big spending plans with important customers before starting projects."

Illustration for Civil Aviation Act 2023

If you are an airport operator and you want to spend money on big projects, you need to talk to your important customers first. You must do this before you approve the project. This is so you can discuss the project with them. You do not have to talk to a customer if they have said in writing that they do not want to be consulted. If you are a certain type of airport company, as defined in section 56A of the Commerce Act 1986, and you have already talked to your customers about some services for another reason, you can count that as talking to them about the project. If you do not follow this rule, it does not affect any agreements or contracts you have made. Some words in this section have special meanings, such as following 5-year period, identified capital expenditure, related capital expenditure, and relevant amount, which are explained in the section.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS352497.

Topics:
Transport and travel > Air travel
Previous

230: Airport operators may set charges, or

"Airports can charge you for using their services, but they must follow rules when setting these charges."

Next

232: Airport operators must consult concerning spatial plans, or

"Airport owners must discuss their future plans with important people before making decisions."

Part 7Airports
Airport operators

231Airport operators must consult concerning capital expenditure plans

  1. This section applies if—

  2. an airport operator proposes an item or a programme of identified capital expenditure; and
    1. the total of any expenditure for the item or under the programme, and any related capital expenditure, that will or is likely to be incurred by the airport operator by the end of the following 5-year period exceeds the relevant amount.

      1. The airport operator must consult all of its substantial customers about the proposed item or programme of identified capital expenditure before approving it.

      2. Despite subsection (2), the airport operator need not consult a substantial customer under this section if the substantial customer has consented in writing to not being consulted (and has not withdrawn that consent).

      3. If the airport operator is a specified airport company as defined in section 56A of the Commerce Act 1986 and specified airport services of the operator are subject to negotiate/arbitrate regulation or price-quality regulation under Part 4 of that Act, consultation about those specified airport services that has occurred or will occur, whether by the airport operator or otherwise, with the substantial customer for the purposes of that Act may be treated as consultation for the purpose of this section.

      4. A failure by an airport operator to comply with this section does not affect the validity or enforceability of any deed, agreement, right, or obligation entered into, obtained, or incurred by the airport operator.

      5. In this section,—

        following 5-year period, in relation to an item or a programme of identified capital expenditure, means the period beginning with the date on which the airport operator approves the item or programme and ending with the date on which 5 accounting periods have been completed following that approval date

          identified capital expenditure means capital expenditure relating to identified aerodrome activities

            related capital expenditure, in relation to an item or a programme of identified capital expenditure, means capital expenditure connected with the identified capital expenditure

              relevant amount, in relation to a proposal by an airport operator with annual passenger movements (during the most recently ended accounting period preceding the proposal) that are specified in the first column of the following table, means the amount specified for those passenger movements in the second column of the table:

              Compare