New Airways Contract

On 26 October CDF signed the new NZDF/ Airways Corporation Contract for Airways' provision of air traffic services to RNZAF aircraft operating in Whenuapai's and Ohakea's air space to 30 June 2010.

The business analysis and negotiation process leading up to this amongst other things required our air operations and flying training units to critically review current required air traffic service levels in light of significant increases in the prices for these specialised services provided by Airways.

This review concluded with recommendations by those units that reduced service level options be selected in light of the benefits versus the costs. These recommendations were wholly agreed and adopted by RNZAF Command in its negotiations with Airways, ultimately resulting in a price for the new contract that was sustainable within the RNZAF's funding envelope and significantly lower than if service levels had been maintained.

Our air operations and flying training personnel that carried out the service level review were therefore key to this positive result, and the benefit has been recognised and appreciated at the highest level in the NZDF. CDF and members of the NZDF Major Tenders Board approving the new contract complimented the RNZAF on its achievement, which is a direct contribution to NZDF Strategic Goal 3: Business Management: To Continuously Eliminate Waste in the Way We Work.

I would like to thank and congratulate all who took part in the process of establishing our new contract with Airways, particularly the air operations and flying training personnel that took part in the service level review that was key to the successful outcome.