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Airport tariff hike capped at 37%

Jul 07 2011 16:34
Pretoria - Airport tariffs will increase by not more than 37% in the coming three years, the regulator said on Thursday.

"There is no exact nominal amount... As regulator, we just discharge specific increases that need to be implemented by Acsa (Airports Company South Africa)," said Regulating Committee member Unathi Mntonintshi.

"But in terms of the grouping of passengers, the groupings of the size of the planes and the different prices to be charged, Acsa will have that detailed information."

Tariffs in the current financial year were at 35% and would increase to 37% in the next financial year, said Mntonintshi.

"It will come down again in the third financial year," he said, without giving more details.

He said what would come out of the increase was not linked to global standards.

When pressed for numbers, transport director general George Mahlalela said it was "almost impossible" to tell how much more a passenger would have to pay (per destination)".

The briefing followed a meeting between the department, regulators, Acsa and other industry representatives.

Mahlalela said they would review Acsa's economic regulatory framework to facilitate predictable, transparent and balanced tariff determinations in the future.

He said his department, together with industry players, will have an intensive and accelerated programme in the next six months to address some of the gaps in the economic regulatory framework for airline industries.

"Moving forward, it is also important to put in place new funding models for airports," he said.




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