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Clarification: ACSA Tariffs media coverage
Wednesday, July 18, 2007 | 00:00

Over the past two days, there has been widespread media coverage regarding the tariffs charged by ACSA.

It should be noted that the charges are independently regulated in a manner that ensures passenger protection. Over the past five years to 2006, average passenger service charges were 4%. Over the same corresponding period to 2012, these charges will increase 11,4% on average.

These charges are often lumped together with other taxes and are called “airport taxes”, giving the impression that the entire airport tax is paid to ACSA. The truth is only the Passenger Service Charge component accrues to ACSA.

At present, the tariff is as follows (all figures mentioned are exclusive of VAT): R26,32 for domestic, R53,51 for regional (Botswana, Lesotho, Namibia and Swaziland) and R70,18 for international flights. As a result of the fact that ACSA will only start charging the new tariffs in October this year instead of at the beginning of the financial year (1 April 2007) as we normally do, the 2006/7 financial year tariffs were adjusted to R29,19; R61 and R79,85 in order to reflect this.

What the table below shows is that the increase for the current financial year is in fact 9,8% whilst the overall annual increase over the five year period is 11,4%. The individual annual percentage increase over the next four years is as reflected in the table.

Financial Year Domestic  % Increase Regional % Increase International  
(Adjusted) 2006/7 R29.19   R61   R79.85  
2007/8 R32.05 9.8% R66.98 9.8% R87.68 9.8%
2008/9 R34.94 9.0% R73.01 9.0% R95.57 9.0%
2009/10 R39.38 12.7% R82.13 12.5% R107.51 12.5%
2010/2011 R44.5 13.0% R92.81 13.0% R121.49 13.0%
2011/12 R50.06 12.50% R104.41 12.50% R136.68 12.50%
           

Average Annual Increase 11,4%

Furthermore, we work on “the user pays principle”. In other words, passengers only pay for the infrastructure that they are using. So, the average 11,4% increase in tariffs is a reflection of the new facilities that will be coming on stream over the five year period. We are, therefore, of the view that our tariffs are reasonable and compare with other international airports.

Towards this end, ACSA will spend about R20 billion over the next five years in upgrading and developing the network of its 10 airports. A component of this expenditure will come from the funding raised through the R12 billion bond programme that ACSA has been registered for.

For further enquiries, kindly contact Solomon Makgale on 082 781 8863    

 
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