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Qantas Group Response to Passenger Safety Levy

Qantas Group Response to Passenger Safety Levy

SYDNEY, 4 November 2009: The Qantas Group today responded to the New Zealand Government’s intention to amend current legislation that would result in Australian airlines operating domestic services in New Zealand paying an additional levy to the New Zealand Government.

Qantas Group Executive Government and Corporate Affairs David Epstein said the Qantas Group was strongly opposed to the New Zealand Government’s intention to amend the long standing working arrangement as set out in the Australia New Zealand Aviation (ANZA) Mutual Recognition Principle.

“It has been claimed that the long standing arrangements of mutual recognition that have benefited both Australian and New Zealand operators now has an ‘anomaly’ in the regulations that govern such an arrangement,” Mr Epstein said.

“The Qantas Group has always adhered to the regulations of any country of which we operate in, but we strongly reject that the regulations have any such anomaly and are disappointed about statements made to this effect, and the proposal to impose an additional levy on our New Zealand based operations.

“We are opposed to the change in the regulations based on the principle that we believe the intent of the existing regulations was to offer carriers in both countries an operating environment where they were regulated by a single safety regulator and not both, which also includes paying all fees and charges to the regulatory authority of which they are governed by.

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“We believe that the changes proposed by the New Zealand Government will result in commercial inequities, and have adverse implications for both New Zealand and Australian operators seeking to invest in either market in the future.”

Mr Epstein said the proposed changes, to take effect from December 4, 2009, would mean that Jetstar would have to pay the New Zealand Government an additional NZD $1.66 per passenger (including GST), per domestic New Zealand sector.

ENDS

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