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Cape Town - The Airports Company of South Africa (Acsa) and the independent regulator which awards Acsa's tariff increases may soon butt heads.
This is in the wake of Tuesday's promulgation of lower-than-expected tariff increases for the next three years. But some players reckon these increases are still excessive.
From July 1 Acsa may raise the airport tariffs it charges airlines by 40.7%.
For 2011/12 and 2012/13 the increases will be 25.6% and 16%, respectively. Acsa initially requested a 132.9% hike.
These price increases represent a rap over the knuckles for Acsa. They are less than the draft 59.9% the independent regulator proposed in January - because Acsa neglected to declare a revenue windfall of R540m to the regulator.
The company earned this income through a rental transaction that had been converted to a sale.
Regulator chairperson Mohammed Sizwe said the effect had been applied to the formula to determine the increase.
Sizwe pointed out that the regulator had discussed the latest increases with Minister of Transport Sibusiso Ndebele - who represents government as the Acsa shareholder - once it became clear that Acsa was dissatisfied with the regulator's decision.
The minister supported the final decision, he said. By the time of publication Acsa was still studying the regulator's decision. The company has nevertheless indicated that it finds even the draft 59.9% unacceptable.
Sizwe said he would meet Acsa to discuss the decision, but that the regulator was satisfied with the process and would stand by it.
Erik Venter, joint CEO of Comair, which operates kulula.com, said while Acsa's smaller-than-expected increases are welcome news, the percentages are still too high.
The point, he says, is that the shareholder still contributes nothing, while it has for years been taking cash from Acsa. One would expect the shareholder to put equity back into its companies rather than allowing these types of hikes.
On Wednesday the regulator will meet representatives of the airline industry to discuss the impact of the increases.
- Sake24.com
For business news in Afrikaans, go to Sake24.com.
