No respite for the tourism industry. Just when will someone listen?
The Airlines Association of Southern Africa (AASA) has again raised concerns over Airports Company South Africa’s (ACSA) decision to increase airport tariffs. AASA believes that the increase will negatively impact air travel for local and international travellers.
ACSA’s tariff hike, which will become effective on October 1 2011, will increase passenger service, landing and aircraft parking charges by almost 70% so that ACSA can recover a revenue shortfall. This year’s increase arises from a 34,8% increase approved by the ACSA Regulator effective April 1, but delayed for implementation until October 1 following the issuing of final permission by the Regulator in May this year. It also comes on the back of a 33% increase on April 1 2010, and will be followed by an increase of a further 5% in 2012, 5,6% in 2013 and 5,5% in 2014, resulting in a cumulative increase of 161% increase by ACSA over a five year period.
“Our greatest concern is the ultimate impact on the local travelling public. Prevailing competitive pressure, against a backdrop of an already weak state of the industry, makes it highly unlikely that airlines will be able to continue absorbing the costs from their already small margins. They will have to recover the costs from passengers by increasing airfares for both domestic and international customers,” says Chris Zweigenthal, ceo of AASA.
AASA continued to say that adding to the industry’s concern is the one-sided manner in which these increases have been proposed. “Other than one meeting with the appointed ministerial task team we have had no insight into the process. Nor have we, or any other representatives from the local airline industry, been invited to take part in discussions around proposed airport charges increases and the possible impact thereof on the industry,” continues Zweigenthal.
“The regulatory processes over the past few years, which have resulted in this unacceptable situation, have been acknowledged by all parties including the Airline industry, ACSA, the Regulator and the Department of Transport as being unacceptable. All parties have therefore committed to working together over the next six months to review the current regulatory process and its full impact on the industry to create a sustainable regulatory model in the future and protect the interests of air travellers in South Africa,” concludes Zweigenthal.
The Airlines Association of Southern Africa (AASA) has again raised concerns over Airports Company South Africa’s (ACSA) decision to increase airport tariffs. AASA believes that the increase will negatively impact air travel for local and international travellers.
ACSA’s tariff hike, which will become effective on October 1 2011, will increase passenger service, landing and aircraft parking charges by almost 70% so that ACSA can recover a revenue shortfall. This year’s increase arises from a 34,8% increase approved by the ACSA Regulator effective April 1, but delayed for implementation until October 1 following the issuing of final permission by the Regulator in May this year. It also comes on the back of a 33% increase on April 1 2010, and will be followed by an increase of a further 5% in 2012, 5,6% in 2013 and 5,5% in 2014, resulting in a cumulative increase of 161% increase by ACSA over a five year period.
“Our greatest concern is the ultimate impact on the local travelling public. Prevailing competitive pressure, against a backdrop of an already weak state of the industry, makes it highly unlikely that airlines will be able to continue absorbing the costs from their already small margins. They will have to recover the costs from passengers by increasing airfares for both domestic and international customers,” says Chris Zweigenthal, ceo of AASA.
AASA continued to say that adding to the industry’s concern is the one-sided manner in which these increases have been proposed. “Other than one meeting with the appointed ministerial task team we have had no insight into the process. Nor have we, or any other representatives from the local airline industry, been invited to take part in discussions around proposed airport charges increases and the possible impact thereof on the industry,” continues Zweigenthal.
“The regulatory processes over the past few years, which have resulted in this unacceptable situation, have been acknowledged by all parties including the Airline industry, ACSA, the Regulator and the Department of Transport as being unacceptable. All parties have therefore committed to working together over the next six months to review the current regulatory process and its full impact on the industry to create a sustainable regulatory model in the future and protect the interests of air travellers in South Africa,” concludes Zweigenthal.
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