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Airlines get break as Airways hikes prices

NZN 26/05/2016

Airlines have been given a break with cheaper prices while smaller operators will pay more as the country's air traffic controller hikes its prices.

From July, government-owned Airways Corp will cut its air traffic management fees for airlines by 4.7 per cent 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 per cent to keep in line with inflation.

"The prices provide us with the funding to continue to provide safe, reliable, predictable and innovative services," chief executive Ed Sims said in a statement.

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

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

Airways reviews its services and pricing every three years.

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