Airservices Australia will reduce aviation charges for the first time from July 1 as the organisation seeks to minimise operational costs for the airline industry and light aircraft operators.
Aviation charges will be cut by two per cent next month following a price freeze in 2015 and the consolidation of an efficiency program at Airservices for the non-operational divisions of the organisation.
The program, which quarantined air traffic control and aviation rescue and fire-fighting services, delivered savings of more than $170 million, creating the headroom to reduce charges for the first time. The price cut will result in multi-million dollar savings for Australia’s airlines and aviation industry.
Airservices Chief Executive Officer Jason Harfield said, “We are passing on these savings to the aviation sector while not compromising operational safety and continuing to improve service delivery and invest in new technology to help the industry grow.
“Without the prize freeze and changes introduced under our efficiency program, customers were facing price increases of 15 per cent from 2016, costing the aviation sector an extra $380 million over the period to 2020.
“I am very proud of the fact that Airservices is in a position to support the aviation sector in Australia, both through operational excellence and now through lower costs,” Mr Harfield concluded.
Deputy Prime Minister and Minister for Infrastructure, Transport and Regional Development Michael McCormack said, “These price reductions will go some way to help keep the cost of operating aircraft in Australian airspace as low as possible. Air travel for millions of Australians is not optional and the Liberal and Nationals Government is committed to doing its part to keep aviation costs down.
“It’s a credit to Airservices for providing a world-class service to Australian aviation at the highest safety and operational standards whilst reducing costs,” Mr McCormack added.
Airservices is Australia’s air navigation service provider. It provides safe, secure, efficient and environmentally-responsible air traffic control, air navigation and aviation rescue fire-fighting services.