Ms Wilkinson said the Department of Conservation's "arbitrary cap" was a "blunt instrument that unfortunately could have put air operators out of business, without actually addressing the impacts of the activity on the environment".
It was also "unnecessary, as the weather acts as a natural cap".
The concept was introduced under the Fiordland National Park Management Plan in 2007, as a means of managing the accumulative adverse effects of aircraft activity in the area, primarily to limit air traffic noise.
Using the limit established in the plan, Doc ran a competitively contested allocation process for those wanting to land at Milford.
In 2008 the Otago Daily Times reported 36 companies applied for 23 packets of 9496 yearly landings.
The 10-year concessions allowed operators to regularly land at, and take off from, the Milford aerodrome between 8.30am and 6pm.
Several operators which had used Milford Aerodrome regularly missed out on concessions, including Wanaka Helicopters, which had been operating at Milford since 1995.
Its owner and chief executive, Simon Spencer-Bower, told the ODT from Wellington yesterday "democracy finally prevails".
The company applied for concessions and was advised to apply based on historical landing numbers.
"For example, we [applied for] 36 and we probably would have liked 86, but it was advised not to apply for someone else's allocation, because if everyone applied for their own allocation, the process would go ahead all right.
"Outside operators came in and said `why can't we apply for some?' ... and that's where the process fell down. There were more applications than allocations and someone else ... got mine.
"It was a completely flawed process by the Department of Conservation ... that's why the Government took it up."
Mr Spencer-Bower said the 2007 decision had a "significant" financial impact on his company, along with others who missed out.
Ms Wilkinson said by removing the cap, Doc could reconsider applications, allowing all aircraft activity to be properly managed, with a focus on mitigating effects. Flight landings had not reached 9000 in nine years as weather restricted flying to 250 days a year.
"Doc will now work with the tourism and local aviation industry on the best ways to reduce noise levels, including developing a code of management and monitoring regime," she said.
Milford Users Group chairman Hank Sproull, representing between 25 and 30 operators, said reviewing the cap was what the group wanted. "It's a difficult business to survive in. It's flat out when the weather's fine and then you have weeks like today. We probably won't even see Milford this week.
Mr Sproull said eachcompany would have to apply for a concession, a process to be worked through with Doc. However, the department needed to be aware of the importance of Milford Sound for the tourism industry.
"It needs to be promulgated - when people go to Milford Sound, it's not going to be a completely serene environment.
You have boats and buses and helicopters and planes.
