What is ‘airport tax’?
The term ‘airport taxes’ is often used for all charges, costs, and taxes recovered through the air ticket, thus creating an impression that ‘airport taxes’ accrue to Airports Company South Africa. The passenger service charges are but one of the charges collected through the air ticket. These charges are required by National Treasury to be split between taxes, regulated charges, non-regulated charges and airline costs.
- Value added tax
- International departure tax
- Airports Company South Africa passenger service charge
- SA Civil Aviation Authority safety charge
- Air Traffic and Navigation Services charge
- ACS passenger charge (ACS is a company owned jointly by the airline associations)
*Fuel surcharge is the biggest component of the ‘airport taxes’.
GDP growth as the driver for traffic volume growth
The airline industry often states that airport tariffs have a material negative impact on traffic volume growth. There is no empirical evidence for such statements. Studies have shown that airport tariffs have very limited impact, if any, on traffic volume growth. This is primarily because as a proportion of overall airline operating costs, airport tariffs are miniscule.
What are the different categories of Airports Company South Africa tariffs?
Airports Company South Africa charges users for the use of its facilities, in accordance with these regulatory provisions. The categories of airport charges are:
Landing fees vary according to the origin of the aircraft and the aircraft weight, and fall into three categories, namely: domestic, regional and international.
For aircraft parking fees, the combination of the weight of the aircraft and the duration parked (to the extent that it exceeds four hours) and the parking stand utilised are considered in determining the parking charges.
Passenger Service Charges (PSC) are charged on departures only, categorised into domestic, regional and international.