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Civil Aviation Act 2023

Airports - Airport operators

226: Airport to be operated commercially

You could also call this:

"Airports must be run like a business, unless you're a council or special organisation."

When you run an airport, you must operate it like a business, unless you are a local authority or a council-controlled organisation with special rules. You can check what a local authority is in section 5(1) of the Local Government Act 2002. A council-controlled organisation has a special meaning, which you can find in section 6(1) and (4) of the Local Government Act 2002.

If you are a local authority, you do not have to run the airport like a business if you say so in your planning documents. You can also be a council-controlled organisation and not run the airport like a business if you say so in your rules and are not a specified airport company. A specified airport company has a special meaning, which you can find in section 56A of the Commerce Act 1986.

If you are a local authority and part of a council-controlled organisation, you do not have to run the airport like a business if the organisation says so in its rules and is not a specified airport company. This means you have to follow the rules that apply to your situation to decide how to operate the airport. You must understand what type of organisation you are to know how to run the airport.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS473360.

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Part 7Airports
Airport operators

226Airport to be operated commercially

  1. An airport operated by an airport operator must be operated as a commercial undertaking unless—

  2. the airport operator—
    1. is a local authority; and
      1. provides in its planning documents that the airport is not to be operated as a commercial undertaking; or
      2. the airport operator is a council-controlled organisation that—
        1. provides in its constitution, or any other rule or document constituting the council-controlled organisation or governing its activities, that the airport is not to be operated as a commercial undertaking; and
          1. is not a specified airport company; or
          2. the airport operator—
            1. is a local authority; and
              1. is a shareholder in, a member of, or otherwise forms part of a company or an entity that is a council-controlled organisation that—
                1. provides in its constitution, or any other rule or document constituting the council-controlled organisation or governing its activities, that the airport is not to be operated as a commercial undertaking; and
                  1. is not a specified airport company.

                2. In this section,—

                  council-controlled organisation has the meaning given in section 6(1) and (4) of the Local Government Act 2002

                    local authority has the meaning given in section 5(1) of the Local Government Act 2002

                      specified airport company has the meaning given in section 56A of the Commerce Act 1986.