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Civil Aviation Amendment Act 1987

Public Act		1987 No 12
Date of assent		28 February 1987

	Title
1	Short Title and commencement
2	New sections substituted
	“29a	Authorisation of contracts, arrangements, and understandings relating to international carriage by air
	“29b	Minister may issue commission regimes
	“29c	Authorisation of tariffs by Minister
	“29d	Application of Commerce Act 1986
	Administrative information

An Act to amend the Civil Aviation Act 1964

BE IT ENACTED by the Parliament of New Zealand as follows:

1 Short Title and commencement

(1)

This Act may be cited as the Civil Aviation Amendment Act 1987, and shall be read together with and deemed part of the Civil Aviation Act 1964 (hereinafter referred to as the principal Act).

(2)

This Act shall come into force on the 1st day of March 1987.

2 New sections substituted

(1)

The principal Act is hereby amended by repealing section 29a, and substituting the following sections:

“29a Authorisation of contracts, arrangements, and understandings relating to international carriage by air

“(1)

In this section and in sections 29b to 29d of this Act, unless the context otherwise requires,—

“‘Capacity’ means a statement, expressed to apply to 1 or more specified airlines, or to all airlines other than 1 or more specified airlines, or to all airlines, specifying the number of flights to be undertaken between specified points in a period or successive periods by the airline or airlines, whether or not by reference to specified classes of aircraft or the number of seats or volume of cargo space to be provided:

“‘Commission regime’ means a statement, expressed to apply to any specified international carriage by air, specifying the rates and bases of calculation of agency commissions (including any benefit, whether in monetary form or otherwise, supplied to an agent) to be allowed, charged, disbursed, given, offered, paid, provided, or retained, in relation to the international carriage by air to which it is expressed to apply, and the circumstances and conditions under and subject to which any such commission is to be so allowed, charged, disbursed, given, offered, paid, provided, or retained; and different rates, bases, circumstances, and conditions may be specified in respect of all or any of the following:

“(a)

International carriage by air provided by different airlines:

“(b)

International carriage by air arranged by persons of different classes:

“(c)

International carriage by air provided for persons of different classes:

“‘International carriage by air’ means the carriage by air of persons, baggage, or cargo—

“(a)

Between New Zealand and any place outside New Zealand; or

“(b)

Where that carriage is purchased, sold, or arranged in New Zealand, between places outside New Zealand:

“‘Tariff means a statement, expressed to apply to 1 or more specified airlines, or to all airlines other than 1 or more specified airlines, or to all airlines, specifying—

“(a)

The fares, rates, and charges applicable to international carriage by air between specified points (whether direct or indirect, and whether or not including any stopovers) that may at any time be provided by the airlines to which it is expressed to apply; and

“(b)

Any conditions subject to which any such fares, rates, and charges, or any of them, are to apply to international carriage by air between those points; and

“(c)

Any conditions subject to which international carriage by air between those points is to be provided on such fares, rates, and charges.

“(2)

The Minister may from time to time specifically authorise all or any provisions of a contract, arrangement, or understanding made between 2 or more persons in respect of international carriage by air and related to such carriage so far as the provisions relate, whether directly or indirectly, to the fixing of tariffs, the application of tariffs, or the fixing of capacity, or any combination thereof.

“(3)

In considering whether to grant authorisation pursuant to subsection (2) of this section, the Minister shall—

“(a)

Have regard to policies on external aviation from time to time promulgated by the Government of New Zealand; and

“(b)

Ensure that the granting of such authorisation will not prejudice compliance with any relevant international convention, agreement, or arrangement to which the Government of New Zealand is a party.

“(4)

Subject to subsection (5) of this section, authorisation shall not be given under this section to any provision of any contract, arrangement, or understanding which—

“(a)

Provides that any party to it may directly or indirectly enforce it through any form of action by way of fines or market pressures against any person, whether or not the person is a party to the contract, arrangement, or understanding; or

“(b)

Has the purpose or effect of breaching the terms of a commission regime issued under section 29b of this Act; or

“(c)

Unjustifiably discriminates between consumers of international air services in the access they have to competitive tariffs; or

“(d)

So far as it relates to tariffs, has the effect of excluding any supplier of international carriage by air from participating in the market to which it relates; or

“(e)

Has the purpose or effect of preventing any party from seeking approval, in terms of section 29c of this Act, for the purpose of selling international carriage by air at any other tariff so approved; or

“(f)

Prevents any party from withdrawing without penalty on reasonable notice from the contract, arrangement, or understanding.

“(5)

Notwithstanding the provisions of subsection (4) of this section, the Minister may authorise any provision of any contract, arrangement, or understanding under this section if the Minister believes that to decline authorisation would have an undesirable effect on international comity between New Zealand and any other State.

“(6)

If the Minister declines to authorise any provision of any contract, arrangement, or understanding under this section the Minister shall give notice in the Gazette that authorisation has been declined.

“29b Minister may issue commission regimes

The Minister may from time to time, by notice in the Gazette,—

“(a)

Issue commission regimes:

“(b)

Amend or revoke any commission regime so issued.

“29c Authorisation of tariffs by Minister

“(1)

The Minister may from time to time specifically authorise any tariff in respect of international carriage by air where the relevant places of departure and destination are within the territories of 2 countries, one of which is New Zealand, whether or not there is to be a break in the carriage or a transhipment.

“(2)

In giving authorisation under this section the Minister shall have regard to the matters referred to in section 29a(3)(a) of this Act, and to—

“(a)

Whether the proposed tariff is excessive in terms of a reasonable return on investment by the supplier of the carriage; and

“(b)

Whether it is likely that supply of the relevant carriage can be carried on for a reasonable period at the level of tariff proposed; and

“(c)

Whether there is likely to be a substantial degree of benefit accruing to consumers generally, or to a significant group of consumers, as a result of the application of the proposed tariff—

and shall ensure that the granting of such authorisation will not prejudice compliance with any international convention, agreement, or arrangement to which the Government of New Zealand is a party.

“29d Application of Commerce Act 1986

“(1)

Nothing in sections 27 to 29 of the Commerce Act 1986 shall apply to or in respect of—

“(a)

The negotiation or conclusion of any contract, arrangement, or understanding so far as it contains a provision relating to international carriage by air, so long as that provision is not given effect to before its authorisation under section 29a of this Act:

“(b)

Any provision of a contract, arrangement, or understanding relating to international carriage by air so long as it is not given effect to before its authorisation under section 29a of this Act.

“(2)

Every authorisation by the Minister under section 29a or section 29c of this Act and every issue or amendment of a commission regime under section 29b of this Act is hereby declared to be a specific authorisation by an enactment for the purposes of section 43 of the Commerce Act 1986.”

(2)

Section 2(1) of the Civil Aviation Amendment Act 1982 is hereby consequentially repealed.

(3)

Section 111(3) and (4) of the Commerce Act 1986 are hereby repealed.

This Act is administered in the Ministry of Transport.

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Civil Aviation Amendment Act 1987