Airservices Australia cutting costs for carriers

Airlines have praised a reduction in charges for air traffic control operations, but say the cuts will not mean lower fares.

Air traffic controllers in the main control room at Brisbane Airport. Picture: Lyndon Mechielsen

Airlines have praised an unprecedented reduction in charges by Airservices Australia for air traffic control operations, but admit the cuts will not mean lower fares.

The $20 million decrease comes after Airservices made $170m in savings during an ­efficiency drive that carved 700 jobs out of the agency.

Airservices CEO Jason Harfield said the price cut being passed on to operators would generate “multi-million-dollar savings to airlines”.

“Without the changes introduced under our efficiency program, customers were facing price increases of 15 per cent, costing the aviation sector an extra $380m over the period to 2020,” Mr Harfield said.

Deputy Prime Minister Michael McCormack said it was up to airlines what they charged for fares, but it was the government’s intention to reduce costs and red tape wherever possible.

A Regional Express spokeswoman said the reduction in charges would equate to roughly 10c per passenger.

“On the other hand, the rise in fuel prices as well as the huge additional costs incurred by the weak Australian dollar would translate to several dollars per passenger,” she said.

“It’s easy to do the maths in this case.”