Hon Harry Duynhoven: The Guild Contribution

Address to the Annual Dinner of the Guild of Air Pilots and Air Navigators

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Good evening everyone and thank you for inviting me to address your annual dinner. A very special welcome to New Zealand to the Master of the Guild, Group Captain, Roger Gault.

Your organisation is a very special one as the title 'Guild' suggests. It is an organisation dedicated to promoting safety and good airmanship among pilots and navigators. While you are not a lobby group, I acknowledge the contribution that the Guild makes both internationally and within New Zealand in fostering professional standards and assisting with policy development.

For members of your Guild this is quite a special year. It is just on 60 years ago since National Airways Corporation or NAC began commercial operations. While there were other commercial air passenger services before World War II, the creation of NAC is seen as the official beginning of major commercial air operations in New Zealand.

I find the history of New Zealand aviation fascinating. Early pioneers such as the Walsh brothers in Auckland set the scene for the development of the aviation sector even before the First World War. Following that, local aviation plays an increasing role in linking cities and towns. We also see the great flights to link continents such as Sir Charles Kingsford Smith's epic crossing of the Tasman Sea in 1928.

World War II saw significant developments in aircraft technology and many of these developments were quickly picked up by commercial airlines. Perhaps the most famous aircraft was the DC-3 or "gooney bird" as it was nicknamed by the Americans.

I understand that the first flight of this aircraft in New Zealand was made by the legendary Fred or "Popeye" Lucas here in Auckland in 1943. The DC-3 later went on to become the backbone of the fledgling NAC along with the Loadstars and Electras before the turbo prop and jet aircraft entered service.

The book published to celebrate the official history of NAC from 1947 to 1978 is quite an amazing piece of work. It shows the true kiwi pioneering spirit and how quickly New Zealanders realised the potential of aviation. The aircraft, was, and is, a great way of conquering and, dare I say it, exploiting our mountainous terrain. Harry Wigley's early entrepreneurial flair saw the development of a whole new genre of aviation.

I am not here tonight to give you a history lesson but I do want to stress the valuable contribution that aviation and people, such as yourselves, have made and continue to make to New Zealand.

Environmental issues are a top priority for world leaders. We saw this at the recent APEC summit in Sydney and at the 36th Assembly of the International Civil Aviation Organization (ICAO) in Montreal a month ago, where climate change was a key topic for discussion. It is also a high priority for the New Zealand government.

International aviation makes up 2% of the total world's carbon dioxide emissions, but has been increasing at 3.4% per year since 1990. Aviation's contribution to climate change therefore is becoming an increasingly important issue internationally.

Greenhouse gas emissions from "international aviation" are not currently allocated to countries and are not part of the Kyoto Protocol obligations. Generally ICAO is recognised as the principal forum for dealing with international aviation emissions up to 2012.

New Zealand supports ICAO's initiatives to address international aviation greenhouse gas emissions, with New Zealand government officials recently attending ICAO's 36th Assembly in Montréal. ICAO's response to concerns about aviation's impact on climate change and the policy initiatives of different countries were key matters of discussion.

One particular issue that raised debate within the ICAO Assembly was the European draft legislation proposing the inclusion of international civil aviation emissions in the existing European Union's emission trading scheme.

There are potential implications for New Zealand as the draft directive could cover all flights arriving and departing from the EU from as early as 2011. Aircraft operators, including carriers that service New Zealand-Europe routes, would be required to account for CO2 emissions produced during the first and final leg of flights into and out of EU airports.

At ICAO, I understand there was clear disagreement over the way the EU was proposing to implement this proposal. The final Assembly resolution recognised the non-reconcilable views, with the majority of States seeking that emissions trading schemes not be imposed on international aviation without first obtaining agreement from other affected states.

Notwithstanding this position, the draft directive is currently being considered by the European Parliament and European Union member states. Its final shape is likely to be clearer by the first half of 2008. The Government has been engaging with the European Commission and EU Member States on this draft directive.

Action to address aviation emissions is also being discussed within regional forums, such as APEC. A public-private sector APEC Strategic Seminar was held earlier this year in Singapore on measures to address aviation emissions. New Zealand government officials, along with Air New Zealand and Airways, attended this session.

A second public-private sector APEC Strategic Seminar is now planned for early 2008 to advance work in key areas such as air traffic management systems, aircraft design and alternative fuels.

Looking closer to home, domestic aviation was responsible for 7 percent of transport emissions in 2005 - that's 31 per cent higher than 1990 levels. This growth in greenhouse gas emissions from aircraft reflects the growing economy and increased travel/exports from more aircraft trips.

In September, the New Zealand Government announced a broad range of polices designed to combat climate change. These include its in-principle decisions on the design of an emissions trading scheme. It is intended that the scheme, which is currently being consulted on, will be phased in from next year, beginning with the forestry industry, and including all sectors and gases over time.

The transport sector will join the emissions trading scheme from the 1st January 2009, making it the first emissions trading scheme internationally to include transport fuels. The proposed scheme will cover liquid fossil fuels used in New Zealand namely - petrol, diesel, aviation gasoline, jet kerosene, light fuel oil, and heavy fuel oil. The scheme will apply to liquid fossil fuels as far up the supply chain as possible - in other words, when refined oil products leave the refinery or are imported.

Emissions from fuel used for international aviation and marine transport will be exempted from the scheme which is consistent with the Kyoto Protocol.

A comprehensive engagement process with stakeholders is currently being undertaken. One item of discussion, related to the aviation industry, is the option for large users of jet fuel to participate voluntarily in the scheme.

Last month, the government also announced a goal to reduce per capita emissions from the transport sector by half by 2040. The aviation industry has its part to play in contributing to this goal and ensuring that New Zealand's transport sector is sustainable. Ways to improve fuel efficiency in domestic air travel include adopting the most modern, environmentally-friendly aircraft technology, improving air traffic management and minimising flight times.

Air New Zealand is already proactively working to improve its emissions and modernize its fleet. New Zealand's Airways Corporation is also providing a range of measures to help airlines improve efficiency and reduce greenhouse gas emissions as they fly into and over our airspace.

Airways New Zealand has been working with Air New Zealand and Qantas to conduct an Optimised Arrival Trial which allows landing aircraft to follow continuous descent approach procedures into Auckland airport.

The 'optimised descents' have been flown with aircraft engines set at idle, thereby significantly reducing fuel burn and greenhouse gas emissions. The government will continue to work with the New Zealand-based aviation industry, to encourage further progress in this area.

I know that I have spent a lot of time discussing environmental issues, but they are a key factor in the future of world aviation.

In today's aviation security environment it is important that New Zealand's security measures are appropriate for our circumstances and that we are not out of step with the international community.

Just over a year ago, British Police foiled an alleged attempt by terrorists to blow up a number of airliners using liquid explosives.

It immediately sparked a whole new wave of security precautions across Europe and in the US, and as a result all New Zealand international flights to the US were required to comply with the tough new measures. In December 2006, ICAO recommended that states adopt security measures to address the threat posed by liquid explosives. That same month, Australia announced that it was going to implement the new security requirements on all flights in and out of that country by 31 March 2007. This had immediate implications for New Zealand and consequently the New Zealand Government decided to implement these measures on all international flights departing New Zealand from 31 March 2007.

While the threat level in New Zealand may be lower than in some other parts of the world, New Zealand is part of an international aviation system. We must accept that other countries may have higher security requirements than we do, and that the price of accessing international markets is meeting international aviation security requirements.

The recent passage of Aviation Security legislation will contribute to our ongoing compliance with ICAO standards and other international requirements.

I am confident this legislation provides an appropriate balance between the rights of New Zealanders to travel to destinations of their choice and ensuring that our aviation security measures meet international requirements. The legislation clarifies existing security provisions, adds in some new provisions and provides some measure of 'future proofing' our laws so that New Zealand can act quickly and effectively to address new security threats in the future.

I do not need to tell members of the Guild that we are now going through an exciting time with respect to airliner technology. The huge double-decked Airbus A380 is about to make its delayed entry into service with the first operations between Singapore and Sydney - Auckland. Auckland Airport has already geared up to handle these aircraft.

Boeing is stretching its B747 and we are about to see the Boeing B787, an aircraft made with lighter and stronger materials that have to date been more in the realm of yacht and grand prix racing than aviation.

Progress in areas of importance to aviation's environmental performance also continues to be achieved. Jet airliners are now quieter and burn less fuel than they ever have. We can and should expect to see these improvements continue.

One of the key consequences of these developments for New Zealand is that airliners are being developed with significantly greater range. In retrospect it is not surprising that Air New Zealand was the second airline in the world to order these B787 aircraft. It will clearly offer a leap in performance well beyond that of the existing Boeing 767 fleet.

The B787 will open up a whole new range of possible non-stop air routes to and from New Zealand.

Non-stop services between Auckland and airports in the mid-west of the United States, China, India and South America all become possible; indeed, not only possible, but more commercially viable.

The government has also made great progress in making sure that the necessary traffic rights have been exchanged to make such scheduled air services a reality in the years ahead.

Some of the airliner technology changes are less obvious to the travelling public. We are also seeing advances in avionics - computer-technology - that is helping air services become safer and more reliable. There is no better illustration of this than the work done by both Air New Zealand and Qantas to use this new technology to provide more reliable services into Queenstown in bad weather.

In the early 1990's New Zealand was one of the first countries to implement safety legislation based on the management system approach. As a result, the concept of operator management systems is well established in the New Zealand civil aviation system.

New Zealand is working towards implementing Safety Management System (or SMS) requirements with the view that it should apply to a wide range of certificated organisations in the civil aviation system and not just to organisations covered by ICAO Annexes 6, 11 and 14, relating to aircraft operation, air traffic services and aerodromes.

SMS fits well with New Zealand's existing approach to safety regulation, and more accurately reflects safety performance goals compared with existing quality assurance requirements.

SMS is not intended to, nor does it need to, revolutionise New Zealand's civil aviation regulatory framework.

Rather, it seeks to expand the internal quality assurance and exposition concepts to more fully address and encompass all safety related responsibilities of certificated organisations.

To aid the long term implementation of SMS, certificated organisations will be encouraged to adopt SMS voluntarily in the lead-up to mandated rules. A number of organisations have already adopted SMS, particularly in the international arena.

I was privileged to be present when the Hon Annette King officiated with other dignitaries at the turning of the sod for Auckland Airport's second runway two weeks ago. Auckland is undisputed as our gateway to the nation, and as an integral part of New Zealand's air transport network, and is now to undertake an historic step towards accommodating future air transport growth.

A comprehensive air transport network provides many opportunities for airports and the regions they service.

The value of Auckland Airport to the country as a whole, and to our economy, should never be underestimated. The airport's performance as the nation's welcome-mat is vital to our country's success, and a vital part of what I call the "first impressions group", which includes a whole raft of organisations who interface with tourists when they first arrive in the country or a region.

Aviation, domestically and internationally, is heading into some challenging times - especially in respect of environmental issues. New Zealand has managed to deal with challenges like this in the past and should do so in the future. But government and its officials can only do so much, and we rely on organisations such as yours to utilise your contacts and to work with us to achieve good outcomes. I know that you will do this.

Again, thank you for inviting me here tonight and I wish your organisation well in the future.

ENDS

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