Qantas rejects NZ passenger levy 

Qantas is opposing a proposed passenger levy for Australian-licensed airlines operating in the New Zealand domestic market.

Qantas Group executive David Epstein says the company is strongly opposed to the New Zealand government's intention to amend working arrangements as set out in the Australia New Zealand Aviation Mutual Recognition Principle.

The change, which is due to come into affect on December 4, 2009 would only affect JetStar at this stage.

The company will be charged an extra $1.66 per passenger - 83% of the normal levy.

The discount reflects the fact that New Zealand Civil Aviation Authority, who the levy goes to, is not solely responsible for direct regulatory oversight of other airlines.

However, Epstein says Qantas' opposotion is based on the principle that "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.

"We believe that the changes... will result in commercial inequities, and have adverse implications for both New Zealand and Australian operators".

Transport Minister Steven Joyce says the change is necessary to address a civil aviation law anomaly which had seen Australian operators exempted.

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