Airways NZ loses its golden glow as airlines baulk at big price increases

Airways NZ was once held up as a model monopoly by its airline customers for its open approach to negotiate prices while ensuring an appropriate commercial return to its government shareholder.

But steep price increases implemented from 01-Jul-2013 for the next three years coming on top of an 18% increase over the previous four years has truly taken the shine off the IATA Golden Eagle Award bestowed in 2008 recognising Airways NZ's outstanding performance in customer satisfaction, cost efficiency and continuous improvement. The corporation had not increased charges for the past 10 years.

Today the ANS provider which manages some 30 million square kilometres of airspace stands accused by its airline customers of profiteering. But Airways NZ says the price increase is necessary to fund NZD97 million (USD76 million) capital expenditure on essential infrastructure planned for the next three years, most of which had been approved by airlines. In addition the corporation had worked with airlines during the global financial crisis by suspending non-vital infrastructure investments to keep prices down.