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Airways New Zealand has confirmed new prices for its air traffic management services for the next three-year pricing cycle.
Every three years, Airways consults with its customers and stakeholders on proposed operating and capital expenditure, target revenue and service prices for the provision of air traffic control services. Consultation commenced in April and closed in July.
Throughout the consultation process, Airways has acknowledged the ongoing challenges facing the New Zealand aviation industry as it grapples to recover from the impacts of the COVID-19 pandemic. In setting prices, Airways has balanced cost management in the current industry context with our obligations to provide a safe, efficient and reliable service now and into the future.
Airways has confirmed an average price increase of 17.7 per cent across three years for commercial airlines, which translates to an increase of 7.8 per cent in year one, 6.5 per cent in year two and 2.5 per cent in year three.
New pricing will come into effect from September 1, and Airways will not look to recover the cost increase from July 1 to August 31, 2025. This means the effective price increase for year one is 6.5 per cent.
In terms of how this translates to individual passengers, Airways calculates an indicative price per seat increase over the three-year period of $1.20 for a Sydney to Auckland flight, $1.44 for Auckland to Christchurch, $3.62 for a flight from Auckland to Napier and 36 cents for a flight from Wellington to Nelson.
For GA customers operating aircraft less than five tonnes, Airways will apply an inflationary price increase of 11 per cent over the FY26-28 period, which comprises a 6.8 per cent increase in year one, 2.3 per cent increase in year two and 1.9 per cent increase in year three.
“We are operating in the same environment as our customers and are acutely aware of the challenges to deliver services in an increasingly more expensive operating context,” says Airways chief executive James Young.
“Our pricing is based on the number of flights scheduled in and out of each airport. For Airways, we have the challenge of being required to maintain the agreed levels of service at a time when domestic flight volumes are at 90 per cent of levels seen in 2019.”
The final prices and Airways’ response to customer feedback are outlined in the consultation response and decision document. This document, as well as all customer submissions are published on the Airways website. Airways thanks all submitters for their constructive feedback on the proposals.
In addition to feedback on the pricing proposal, feedback was also received on the Pricing and Service Frameworks, which define the parameters for Airways’ delivery of services. Airways intends to review and seek further feedback on the frameworks to explore whether any changes are necessary.
