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Speaker 1: Speaking of cost plus accounting, Airways, which is our air

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Speaker 1: traffic management provider, is suggesting they might like to increase

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Speaker 1: their fees by seven point seven percent as of July.

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Speaker 1: Thank you very much. That's up to two dollars eighty

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Speaker 1: your seat, every seat every time you fly in. Of course,

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Speaker 1: you know who pays for that. Executive director at the

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Speaker 1: Border Airline Representatives Cathe Brian's Begler, This's cath Morning.

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Speaker 2: Good morning mate.

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Speaker 1: I take it you're not a fan.

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Speaker 2: Not a fan. I mean over the three years, we're

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Speaker 2: actually looking at twenty two point eight percent increase and

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Speaker 2: fourteen point four percent in the first year, so it's

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Speaker 2: front loaded, right up front, effect of one July twenty

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Speaker 2: twenty five checks notes. That's actually just in a few

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Speaker 2: months once we get through, of course, the price consultation.

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Speaker 1: Do it. Well, that was I'll come to that in

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Speaker 1: the moment. Do the airways have an argument as to

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Speaker 1: why this is so necessary?

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Speaker 2: Look, they have a number of things that they need

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Speaker 2: to invest in, and lots of those things are really important.

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Speaker 2: Don't get me wrong. We need to have the air

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Speaker 2: traffic controllers, we need to have so sky it's important.

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Speaker 2: But what the sort of bigger problem here is that

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Speaker 2: this is the latest and a long round of price

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Speaker 2: increases for airlines flying to New Zealand, which is not

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Speaker 2: taking us in the direction we want to when it

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Speaker 2: comes to tourism.

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Speaker 1: No, because I thought we'd dealt with this this business is.

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Speaker 1: You know that the inflation was under control, so clearly

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Speaker 1: it's not in these particular cases. Where is the regulation

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Speaker 1: that can they just say that's the number or not?

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Speaker 2: Yeah, they essentially can say that's the number. Much like airports.

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Speaker 2: They can. They can set prices and indeed they target

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Speaker 2: like a profit because their ways is an soe, they

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Speaker 2: have to target a commercial return. So in these prices

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Speaker 2: there is a commercial return proposal of eight point zero

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Speaker 2: eight percent, So that's the thing that we're having to

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Speaker 2: pay for. Yeah how much? Right? You heard me? Eight

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Speaker 2: point zero eight percent target return.

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Speaker 1: So that would involve the government at that point to

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Speaker 1: maybe put some pressure on them at that end of

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Speaker 1: the scenario, and that will get passed on like airport's

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Speaker 1: passed on. So I'm going to end up paying for it.

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Speaker 2: Aren't I? Yeah? Look look here you are, and you

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Speaker 2: know the trouble that New Zealand's got at the moment

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Speaker 2: is we've got Aukland the airport where prices are rising.

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Speaker 2: Every single year, We've had the Civil Aviation Authority increase

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Speaker 2: its levees for large airlines by one hundred and forty

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Speaker 2: three percent. Was it also effect of one July twenty

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Speaker 2: twenty five and now we have airways fourteen point four

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Speaker 2: percent as the first tranch of this in one July

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Speaker 2: twenty twenty five. All of these things are hitting foreign

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Speaker 2: airlines in a commercial profit view of their.

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Speaker 1: Route, which of first then brings us to tourism. And

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Speaker 1: when they say we're expensive.

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Speaker 2: We are, we really are. And that's ignoring the international

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Speaker 2: visital levy at one hundred god dollars per person plus

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Speaker 2: the visa charges that went out last year. So New

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Speaker 2: Zealand really is pricing itself out of the market when

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Speaker 2: it comes to aviation hopeless.

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Speaker 1: Kath, nice to talk to you. Appreciate it, Katha, Brian

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Speaker 1: Border Airlines representatives. I was slightly confused there for a

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Speaker 1: moment because what she was suggesting, I don't know if

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Speaker 1: you picked it up, is that when somebody puts their

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Speaker 1: prices up, that price gets passed on. But I was

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Speaker 1: listening to Donald yesterday in America who was saying that

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Speaker 1: when you put your prices up, the prices go down.

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Speaker 2: So for more from the Mike Asking Breakfast, listen live

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Speaker 2: to news talks.

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Speaker 1: It'd be from six am weekdays, or follow the podcast

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Speaker 1: on iHeartRadio