Airways gives airlines a break with cheaper prices, small operators face price hike

Friday 27th May 2016

Airways Corp, the government-owned entity in charge of air traffic control, will give airlines a break with cheaper prices, while hiking them for smaller operators.

From July, the Wellington-based state-owned enterprise will cut its air traffic management fees for airlines by 4.7 percent over the three years of its pricing period, with the bulk of the reduction coming in the first year. At the same time, general aviation prices will rise by 1.6 percent to keep in line with inflation.

"Providing a price decrease reflects the current growth of New Zealand's aviation sector as well as Airways' commitment to enabling further airline investments in modernisation and expansion," chief executive Ed Sims said in a statement. "The prices provide us with the funding to continue to provide safe, reliable, predictable and innovative services."

Airways had previously planned to raise prices for airlines by 3.6 percent over the three-year period at an annual average pace of 1.2 percent.

The move comes after a "robust" consultation period, which Sims said recognised the importance of airlines to New Zealand's business, trade and tourism.

Airways reviews its services and pricing every three years in consultation with its customers.

BusinessDesk.co.nz

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