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Pressure over airport tariff hike

Jan 20 2010 08:50 James-Brent Styan

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Johannesburg - The independent economic regulator of the Airports Company of South Africa (Acsa) will announce its decision on the company's proposed tariff increase by end-January.

Acsa wants the regulator to approve tariff increases of up to 132.9% this year, and 24.4% next year.

The Airports Company applies for tariff increases every five years, and it is not asking for any increase over the three financial years up to 2015.

The regulator is under great pressure from Acsa's major clients, the airlines, not to accede to the application.

The International Air Traffic Association (Iata) has put Acsa at the top of its "wall of shame" because of the latest request.

Iata director-general Giovanni Bisignani has previously rebuked Acsa for alleged abuse of its South African monopoly.

He has also berated the company for its decision to introduce the planned increases just in time for the World Cup soccer tournament.

The increase would come into effect on June 1 this year, and World Cup soccer tournament starts on June 11.

If the 132.9% hike is approved, international visitors will have to pay R271 in airport tax from June 1 compared with the current R118. This means a R153 increase.

Instead of the current R42 (VAT excluded) inland travellers will possibly have to pay as much as R99.

Acsa was also castigated by various airlines, including Comair, for its alleged unnecessary expenditure on infrastructure projects like the new KwaZulu-Natal airport.

- Fin24.com

For more business news in Afrikaans, go to Sake24.com.

 
 
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