Airways New Zealand, the New Zealand air traffic controller, is consulting with airlines and others about the new prices it wants to set for the next three years, starting July 2019.

Airways wants to increase prices by 6.3% on average over those three years, but the increase will be front loaded.

This is to fund investments in digital towers, a new ATM system, UAV detection, the flexible contingent runway at Auckland and a business transformation programme.

Some of these initiatives should save costs in the long run and others are necessary investments, but the proposed increase will be a substantial burden on an airline sector already facing growing costs on multiple fronts.

BARNZ will work with Airways to try to find ways to mitigate the cost impact while still making sure that essential improvements are delivered.