Big news for airlines

Australian carriers will save tens of millions of dollars a year, after Airservices Australia announced a first-ever reduction in aviation charges for airlines.

This is big news for Australian airlines that will hopefully translate to lower fares for passengers.

As of 1 July, AA reduced aviation charges by two per cent, thanks to productivity improvements and cost-saving measures at the national navigation service provider.

The two per cent reduction will be subtracted from aviation costs that have already been frozen since 2015.

“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,” said IATA Asia Pacific regional vice-president Conrad Clifford.

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.”

The annual savings for carriers should be around $20 million a year.

“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,” said Airservices chief Jason Harfield. 

Deputy Prime Minister Michael McCormack, who is also Minister for Infrastructure, Transport and Regional Development, said the price cuts would “go some way to help keep the cost of operating aircraft in Australian airspace as low as possible”.

“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,” he said.

Are you hopeful these savings will be passed on to passengers?

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Written by Leon Della Bosca

Publisher of YourLifeChoices – Australia's most-trusted and longest-running retirement website. A trusted voice on Australia's retirement landscape, including retirement income and planning, government entitlements, lifestyle and news and information relevant to Australians over 50. Leon has worked in publishing for more than 25 years and is also a travel writer and editor, graphic designer and photographer.

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