Airways New Zealand and Rotorua Airport reach commercial agreement

Rotorua Airport air traffic control tower. Photo / File

Airways New Zealand and Rotorua Airport have reached an agreement which will see existing aerodrome control services retained at Rotorua Airport until May 2021.

In May, Airways confirmed its decision to withdraw services from seven airports, including Rotorua, resulting in the loss of up to 38 jobs in the six months following.

However, Rotorua Airport chief executive Mark Gibb said "we will fight this until the end" and the airport launched legal action against Airways, hoping to keep the airport services if planned legal discussions leaned in its favour.

Now, the two organisations have come to an agreement which ends the arbitration process they had entered into.

The airport is currently carrying out an aeronautical study for the Civil Aviation Authority to determine what aerodrome control services are required for Rotorua.

Depending on the outcome of the study, Airways and the airport may enter new commercial negotiations to determine if Airways will provide a future service and how it will be funded.

Gibb said a key objective of arbitration was to allow the Airport to undertake an aeronautical study to fully understand the requirements for air control services in Rotorua, to inform future decisions.

"We are pleased to be able to move forward with Airways," he said.

"This is the right outcome for everyone involved and will ensure the safety of our travellers."

Rotorua Airport chief executive Mark Gibb. Photo / File

Airways chief executive Graeme Sumner said: "We're glad we have been able to reach an agreement that provides certainty for the airport and our people as we move through the process to determine what the future of our services provided at Rotorua Airport will be."

The agreement ends the arbitration process Airways and Rotorua Airport entered into
when Airways announced its intention to change services. Legal restrictions and
commercial sensitivities mean further detail about the agreement cannot be shared at this
time.

Rotorua mayor Steve Chadwick said the news of an agreement was great for Rotorua.

"This is really good news for our district and will provide the time needed to assess and determine what happens in future.

"Our airport has a key role to play in our economic recovery, and I thank Airways for listening to Rotorua's concerns, and for enabling us the time to work this through to ensure we get the right outcome for our district."