Airways New Zealand to reduce airline charges by 4.7 percent

Air navigation service provider Airways New Zealand confirmed it would be decreasing prices for airlines by 4.7 percent over the next three years.

Following a major industry consultation, Airways New Zealand will reduce charges for airlines by 4.7 percent from 2016 to 2019. The majority of the decrease will be realised in the first year with a 9.8 percent reduction.

Airways New Zealand: ‘The majority of the decrease will be realised in the first year’

This is a considerable decrease from the consultation proposal that suggested increasing fees by 3.6 percent over the next three years.

Commenting on the announcement, Airways chief executive Ed Sims said the new pricing recognises a robust consultation process and the importance of the aviation industry to New Zealand in underpinning business, trade, and tourism.

“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,” said Mr Sims.

By reinvesting the revenues available from aviation growth back into the aviation system, the state-owned enterprise says it is able to deliver airlines greater service reliability, better on time performance, and a reduced carbon footprint, while also reducing its prices.

It is expected that within the next 20 years some three billion journeys will touch down in the Asia Pacific region and tourist arrivals in New Zealand are projected to hit 4.5 million by 2022, up from 3.1 million in 2015.

“Airways is working collaboratively with airlines, airports and other infrastructure owners to ensure that New Zealand airspace remains one of the safest and most efficient places in the world to fly,” stressed Mr Sims.

Commenting on the announcement, Conrad Clifford, IATA’s Regional Vice President for Asia Pacific, said: “We welcome the announcement by Airways New Zealand to reduce charges by 4.7% for the 2016 to 2019 pricing period following consultations with the industry. This is a major improvement from the initial proposal in January of an overall 3.6% increase over the same period. In particular, the 9.8% decrease in 2016/2017 will go a long way to offset the increases in the subsequent two years.

“Airways’ efforts to engage the industry in effective consultations is commendable. The reduction shows that they have listened to and accepted the feedback from airlines during the consultation process. We recognise that over the last three years, Airways has done a lot to manage its costs, while maintaining a robust ATC system and at the same time planning ahead to prepare for future growth. 

“Airways has set a high benchmark for the airline-ANSP relationship. We urge other ANSPs in the region to take a similar approach in their relationship with their airline customers.”