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Speaker 1: More cost plus accounting, this time from the airways. Now

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Speaker 1: airways are the people responsible for air traffic management in

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Speaker 1: this country. They're putting the flees up seventeen point seven

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Speaker 1: percent over the next three years, so that's seven point

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Speaker 1: eight and year one six point five and year two

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Speaker 1: two point five and year three. Katherine Bryan's executive director

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Speaker 1: of the Border Airline representative Xanders with us Kath morning,

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Speaker 1: Good morning mate. Do you get any say in this?

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Speaker 2: Yeah, look we do, and you know, to be fair

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Speaker 2: to airways, we have had some consultation with them over

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Speaker 2: the last three while and they have moderated their price increases.

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Speaker 2: So instead of seeing you know, fourteen percent in year one,

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Speaker 2: which we did originally see, we're now saying, you know,

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Speaker 2: I set that seven point percent, as you say, so,

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Speaker 2: so it's less bad than it and it could have

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Speaker 2: been we.

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Speaker 1: Gained it or played do they go instead of seven

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Speaker 1: point eight, they go, well, it's going to be thirteen

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Speaker 1: point two and you go no, no, and they go

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Speaker 1: all right seven point eight.

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Speaker 2: Yeah. Look, I mean who knows, right, But certainly it's

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Speaker 2: been a detailed consultation process that has taken a long

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Speaker 2: time and longer than usual so you know, I'd like

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Speaker 2: to think that we're all playing with a straight back here,

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Speaker 2: but you know, here we are another cost for airlines.

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Speaker 2: You know, on and on it goes, and I think

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Speaker 2: we're really started seeing the effects of that. I heard

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Speaker 2: drained from air chats on the on the air this morning.

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Speaker 1: Do you get anything for it?

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Speaker 2: Well, we get a safe and secure sky.

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Speaker 1: Yeah, but you got that already. I mean, do you

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Speaker 1: get a more safe and secure sky? Do you get

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Speaker 1: a Christmas present? I mean, does anything change or pay more?

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Speaker 2: There's not a free set of staatenes, but I think

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Speaker 2: we do. We do get, you know, the ongoing investment

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Speaker 2: in the in the aviation system, and it's and it's

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Speaker 2: provision of their services. So you know that's important. And

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Speaker 2: it's not for airlines to say no, air traffic control

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Speaker 2: is not importantt L No, we shouldn't continue to invest.

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Speaker 2: Of course we want that. But in New Zealand airlines

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Speaker 2: pay for everything. We pay for the air traffic control,

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Speaker 2: we pay for the Civil Aviation Authority all of it.

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Speaker 2: We pay for every single airport building that's ever built,

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Speaker 2: and actually and lots of other countries there's state investment

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Speaker 2: in some of those things. And in New Zealand, we're

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Speaker 2: passing all of those costs onto airlines and that is

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Speaker 2: starting to become a very heavy burden.

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Speaker 1: And then it'll go straight to the ticket one air.

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Speaker 2: Looks for sure, and it will, you know, for the

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Speaker 2: smaller carriers if you add you know, the sixty percent

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Speaker 2: increase in Klin airport charges between twenty twenty three and

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Speaker 2: twenty twenty four for regionals, or you add this one

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Speaker 2: hundred and forty five percent increase in civil aviation costs

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Speaker 2: as from one July this year for smaller airlines. This

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Speaker 2: is really starting to become a problem and we're seeing

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Speaker 2: that with a decision from Sounds. And you know, we're

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Speaker 2: also seeing New Zealand struggle to recover its international air connectivity,

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Speaker 2: so airlines are not returning to this market in a

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Speaker 2: way that's different from the rest of the world, and

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Speaker 2: that is a concern.

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Speaker 1: That's a very good point you, Mike Well and Kath

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Speaker 1: appreciate it, Kath O'Brien, who's executive director, Board of Airline Representative.

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