New Zealand’s decision to increase air navigation charges (ANS) has been met with disappointment by the International Air Transport Association (IATA).
The country’s ANS provider Airways New Zealand raised charges by 12.7% at the start of July, with further increases set for 2020 and 2021.
Airlines will face a cumulative 21.4% increase in New Zealand’s ANS charges over the next three years.
At a time when airlines are facing a deteriorating business environment, every cost-saving opportunity matters
“Airways New Zealand needs to exercise cost management discipline and conduct a forensic analysis of their cost building blocks,” said Conrad Clifford, IATA’s Regional Vice President, Asia-Pacific.
“And then with input from stakeholders, including airlines, identify what is critically required, and what can be removed or deferred into future periods.”
Meanwhile, Clifford praised Australian efforts to help airlines reduce operating costs following the announcement that the state’s ANS provider, Airservices Australia, has reduced charges by 2%.
The move will see the airline industry save AU$20 (US$14) million annually. In June, IATA released revised figures that show the sector’s net profits will drop to $28 billion for 2019.
“At a time when airlines are facing a deteriorating business environment with rising fuel prices and a substantial weakening of world trade, every cost-saving opportunity matters,” Clifford said.
“Not only has Airservices Australia frozen the cost of air traffic control services since 2015, they have also been able to identify productivity improvements resulting in cost savings that will now be passed on to their airline customers.”