Airservices Australia will cut airways charges by 2% from 1 July this year. It is the first time charges have been cut since they were frozen in 2015.
According to Airservices CEO Jason Harfield, the cut is possible because of operational efficiency that has been introduced to the air navigation service provider, saving $170 million over the past four years.
“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, he said.
“Without the prize freeze and changes introduced under our efficiency program, customers were facing price increases of 15% 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."
Deputy Prime Minister and Minister for Infrastructure Transport and Regional Development Michael McCormack said the cuts to charges would have benefits for all operators.
“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.”