Airport fee hikes excessive - airlines
Association hopes state will get Acsa to reduce 133% rise
October 27, 2009
All South African airlines, and the others flying into this country, are hoping that the government will limit the extent of tariff increases by Airports Company South Africa (Acsa) and air traffic controlling company ATNS, which could send the cost of air travel soaring at a time when the industry is struggling.
Acsa is investing R15 billion on improving and enlarging the country's nine state-controlled airports, with much of the work due to be completed in time for the soccer World Cup next June, when thousands of fans will arrive from all over the world. It intends passing most of the costs on to airport users, particularly the airlines.
Increases of 132.9 percent for Acsa and 33 percent for ATNS have been proposed in year one, with smaller increases in succeeding years,
Chris Zweigenthal, the chief executive of the Airlines Association of Southern Africa, (AASA), said at the association's annual conference at the weekend that it was common knowledge that the proposed increases were "unacceptable to the airlines both within and outside South Africa".
"Such increases place Acsa and ATNS in an almost ideal financial position very quickly, contrary to the positions of airline stakeholders. We believe the shareholder (the government) has a responsible role to play, especially in the case of Acsa, where significant dividends have over the past years been paid to the shareholder."
Noting that the R7bn new airport of La Mercy at Durban was being constructed without consulting the airlines - many of which say they do not plan to fly into it although they are expected to pay towards it - Zweigenthal said AASA believed its building had been "accelerated ahead of its time to meet the opening of the World Cup", due to pressure on Acsa.
"I believe that had consultation commenced even before the airline community was brought into the process, Acsa could potentially have achieved a far higher buy-in to the new airport and we could have found ways to assist in finding a more cost effective construction."
Pointing out that the Association of European Airlines called for a freeze on tariff increases while negative growth hindered the industry, Zweigenthal said times were tough for all South African stakeholders "and Acsa and ATNS need to share the airlines' pain".
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