Acsa Gets Lower Tariff Hike Than Requested by Transport Department

The Airports Company South Africa (Acsa) has received a lower tariff increase than it had requested from the Department of Transport, starting from April 1. The tariff hike, which will affect the fees charged to airlines and passengers, is part of Acsa’s plans to expand and upgrade South Africa’s airports. The Department of Transport and the regulator for Acsa have approved a staggered tariff increase that will take effect at the end of each of Acsa’s financial years as follows: 4.5% in 2023/24, 10.3% in 2024/25, 6.51% in 2025/26, 6.16% in 2026/27, and 4.45% in 2027/28.

Acsa’s Tariff Request: Why Did It Ask for a Higher Increase?

Acsa had initially requested a 17.5% tariff hike, which it said was necessary to recover the losses incurred due to the COVID-19 pandemic, which had severely affected the aviation and tourism sectors. Acsa said that it had suffered a revenue decline of 62% in 2020/21, and that it had implemented various cost-cutting and cash preservation measures to survive the crisis.

Acsa also said that it needed the higher tariff increase to fund its capital expenditure program, which aims to expand and upgrade South Africa’s airports, especially the OR Tambo International Airport in Johannesburg, which is the busiest airport in Africa. Acsa said that it planned to invest R17.9 billion ($1.2 billion) over the next five years to increase the capacity, efficiency, and safety of the airports, and to improve the customer experience.

Acsa’s Tariff Approval: How Did the Department of Transport and the Regulator Decide?

The Department of Transport and the regulator for Acsa, which is the Regulating Committee, have approved a lower tariff increase than Acsa had requested, after considering various factors and inputs from various stakeholders, such as airlines, passengers, and the public. The Department of Transport and the Regulating Committee said that they had balanced the interests of Acsa, the airlines, and the passengers, and that they had taken into account the impact of the COVID-19 pandemic on the aviation and tourism sectors.

The Department of Transport and the Regulating Committee said that the lower tariff increase would enable Acsa to recover its costs and earn a reasonable return, while also ensuring that the tariffs remain affordable and competitive for the airlines and the passengers. The Department of Transport and the Regulating Committee also said that the lower tariff increase would support the growth and recovery of the aviation and tourism sectors, which are vital for the economic and social development of the country.

Acsa’s Tariff Impact: What Will It Mean for the Airlines and the Passengers?

The tariff hike, which will take effect from April 1, will affect the fees that Acsa charges to the airlines and the passengers for using its airports. These fees include the landing and parking fees for the aircraft, the passenger service charge for the passengers, and the fuel levy for the fuel suppliers. The tariff hike will vary depending on the type and size of the aircraft, the distance and destination of the flight, and the category and class of the passenger.

The tariff hike will result in an increase in the operating costs for the airlines, which could affect their profitability and sustainability. The tariff hike could also result in an increase in the ticket prices for the passengers, which could affect their travel demand and affordability. However, the tariff hike could also result in an improvement in the quality and efficiency of the airport services and facilities, which could enhance the customer satisfaction and loyalty.

Acsa’s Future Plans: What Else Is in Store for the Company?

Acsa said that it welcomed the tariff approval, and that it was grateful for the support and cooperation of the Department of Transport, the Regulating Committee, and the other stakeholders. Acsa said that it would continue to implement its recovery plan and its capital expenditure program, and that it would strive to deliver world-class airport services and facilities to its customers.

Acsa also said that it would launch new products and services, such as plant-based and organic food, ready-to-eat and ready-to-cook meals, and online and home delivery services. Acsa also said that it would invest in its staff, technology, and sustainability, as well as in its quality, safety, and environmental standards.

Acsa’s CEO, Mpumi Mpofu, said: “We are confident that we have a solid foundation and a clear direction for the future of Acsa. We are committed to creating value for our shareholders, customers, employees, and the society at large.”