Shock hike in airport costs

Johannesburg - From July 1 airlines operating in South Africa will have to pay considerably more for the use of airports, as well as for the services of the South Africa's Air Traffic & Navigation Services (ATNS).

Tariffs at the state-controlled ATNS, which provides traffic and navigation services at South Africa's airports, could rise 43% this year.

The proposed price increase has been announced by ATNS's independent economic regulating committee.

This regulatory body, which also regulates the Airports Company of South Africa (Acsa), previously announced a proposed price increase for Acsa, in terms of which Acsa will hike its tariffs 60%-odd this year.

The regulator's chairperson, Mohammed Sizwe, says he does not expect the proposed increases announced at the end of January to change materially.

He declared that parties have until February 19 to make representations about the regulator's decision, but that it would take considerable persuasion to have the proposed tariff increases changed.

The airlines, which are Acsa's most important clients, are extremely worried about the increases.

Chris Zweigenthal, chief executive of the Airlines Association of South Africa (AASA), says the impact will be for the airline industry to stomach.

ATNS's tariffs will have risen 50% within two years, while Acsa's landing and parking rates will double. Airlines and consumers cannot afford this.

The International Air Travel Association (Iata) also expressed unhappiness with the regulator's draft proposals.

Jeff Poole, Iata director for industry charges, fuel and taxation, says the regulator's proposed increases are unconscionable.

- Sake24.com

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