Qantas furious after Jetstar hit with Government safety charge

Photo / Greg Bowker

Qantas has attacked a New Zealand Government decision to impose a Civil Aviation Authority levy on passengers flying with its subsidiary Jetstar here.

Transport Minister Steven Joyce says the charge from December 4 will correct "an anomaly" that allowed Jetstar to fly domestic sectors exempted from the charge, an extra $1.66 a head.

That is 83 per cent of the normal levy and reflected the fact that Australian authorities, as well as the CAA, are responsible for direct regulatory oversight of other airlines.

But Jetstar has said the $12 million it pays to the CAA's equivalent in Australia covers all safety oversight work done in New Zealand.

Qantas Group government and corporate affairs head David Epstein last night said that the charge could affect airline growth.

"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."

Jetstar began flying domestic routes in June this year and is assessing expansion to its network.

Epstein said he was disappointed with the announcement, which would affect the transtasman working arrangement set out in the Australia New Zealand Aviation Mutual Recognition Principle.

Joyce said the levy would create "a level playing field" by ensuring all airlines contribute to domestic aviation safety.

Officials are still deciding if transtasman flights will be affected.