Open aviation market licences for Single Aviation Market airlines

Scheduled international air service operators can apply for an open aviation market licence for SAM airlines.

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.

You must be eligible under the SAM provisions of the Australia–New Zealand Air Services Agreement. You can find the agreement on the New Zealand Legal Information Institute website.

Australia–New Zealand Air Services Agreement

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

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

Proof of ownership and control

You must show you are eligible under the SAM provisions of the Australia–New Zealand Air Services Agreement, by including affidavits in your application with details showing:

that the airline’s head office and operational base are in Australia or New Zealand
that Australian and New Zealand nationals:
- own a majority 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 at least two-thirds of the positions on the board, including that of chairperson
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. You do not need a certificate if you intend to code-share, and not operate your own aircraft.

If you require an air operator certificate, we can only grant your licence after the certificate has been issued.

To apply for a certificate you 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 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

Proof of insurance

Before you start 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 you at any time to supply proof that your insurance is current.

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

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

If your application meets all the requirements, a decision is normally made within 1 week of us receiving your application.

International agreements

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

to the Australia–New Zealand Air Services Agreement or
any other international agreement, convention or arrangement New Zealand is a party to.

You must:

meet the requirements of the relevant Australian authorities
file a statement of the nature of your scheduled services between New Zealand and Australia for each IATA schedule period, and update the statement if there are changes
file periodic retrospective returns for additional non-scheduled (charter) flights operated between New Zealand and Australia – 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

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

A licence takes effect from the date stated in the licence.

For foreign international airlines, the licence is normally of indefinite duration but, in some circumstances, may be granted for a specified period.

For New Zealand international airlines, a licence is normally granted for a specified period.

Your airline’s status, whether New Zealand or foreign, is determined by the location of your airline’s operational base.

Continued ownership and control

To continue operating the services, you must continue to:

be substantially owned and effectively controlled by Australian or New Zealand nationals, or
have been jointly approved as a SAM airline by Australian and New Zealand ministers responsible for civil aviation.

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.

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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