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Aviation growth changes air traffic management prices

Aviation growth fuels changes to air traffic management prices

Airways New Zealand has today confirmed new prices for its air traffic management services to airlines, light aircraft and general aviation operators.

Following industry consultation, Airways will decrease prices for airlines by 4.7% over the three years of the pricing period. The majority of the decrease will be realised in the first year with a 9.8% reduction.

This is a substantial decrease from the consultation proposal that proposed to increase fees by 3.6% over the three years.

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

He says, “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.”

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.

“This pricing cements Airways’ commitment to managing unprecedented demand and prevent future air traffic congestion with well-planned supply of services, including a $129m investment in New Zealand’s aviation infrastructure,” says Mr Sims.

Within 20 years about half of the world’s air travel, 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,” says Mr Sims.

General aviation prices for the next three years have been kept in line with inflation and will increase by 1.6%.

Mr Sims explains that prices for general aviation operators are set at a level which balances affordability while still reflecting the underlying workload of delivering the service.

“The prices provide us with the funding to continue to provide safe, reliable, predictable and innovative services,” he says.

Every three years Airways consults with its customers and stakeholders on enhancements to services and associated service prices. Airways’ current pricing period expires 30 June 2016 and the new prices take effect on 1 July for a three-year period.

“The final pricing reflects the last three years of working with our customers and listening to their feedback. I would like to thank our airline and general aviation customers for participating in a robust consultation process, including making submissions and providing new information that has positively influenced the outcome we are delivering today,” says Mr Sims.

ENDS

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