Johannesburg, 1 April 2014 – Airports Company South Africa has increased its
tariffs by 5, 6% effective 1 April 2014. The increase, which was approved by the
Regulating Committee, was implemented in consultation with the relevant industry
stakeholders. The tariff increase was published in the government gazette dated
20 December 2013 (Notice 1228 of 2013) as required by the Airports Company Act
No. 44 of 1993. Airports Company South Africa Financial Director, Maureen Manyama-Matome
said, “The airport charges are one of the revenue sources for the company. This
practice is not peculiar to South Africa’s aviation industry as it is standard
practice globally. The increase is CPI-linked and took into account the sluggish
economic conditions and the impact of high fuel prices on the operational
viability of the aviation industry.” The tariff increases represent the period whereby the company continues to
recoup the R17 billion-investment made during the period 2007 to 2010. “This is not an imposition from Airports Company South Africa but a
Regulating Committee undertaking dating back to 2007. The company could only
start levying tariffs, at the insistence of stakeholders, once infrastructural
developments were completed and in use. Moreover, the industry was informed that
the resultant levies of the five-year cycle would be substantial”, elaborated
Manyama-Matome. According to Airports Company South Africa, the aviation industry has
experienced very low tariffs, whilst the company was using its balance sheet to
borrow funds for funding the aforementioned R17 billion-investment. This tariff
increases represents the last cycle of the 2011 – 2015 permission cycle. In addressing industry concerns pertaining to increases, Airports Company
South Africa has proposed a review of the current economic regulatory framework
to ensure that there is transparency, predictability and balance between risk
and rewards. The tariff increase covers airport charges that consist of landing charges,
parking charges and a passenger service charge. As of 1 April 2014, the Passenger Service Charge (including VAT) in South
Africa will be as follows: Category | 2014 | Domestic | R127.00 | Regional (Botswana, Lesotho, Namibia and
Swaziland) | R263.00 | International | R346.00 |
Summary of the tariff increases applied for by Airports Company South Africa
and the Regulating Committee’s response: PERMISSION PERIOD | Regulator’s Final Tariffs Increase Notification (May
2011) | Airports Company South Africa’s Permission Application (September
2009) | 2010/2011 | 33.0% | 132.9% | 2011/2012 | 34.8% | 24.4% | 2012/2013 | 30.6% | 0% | 2013/2014 | 5.5% | 0% | 2014/2015 | 5.6% | 0% | |
For more information, please contact Unathi Batyashe-Fillis Manager:
Communications and Brand Management O.R. Tambo International
Airport Direct: +27 (0) 11 921 6087 Cell: +27 (0) 79 882 7307 Email: unathi.batyashe-fillis@airports.co.za Page |