Airport tax to soar

Johannesburg - The International Air Transport Association (Iata) says if the application by the Airports Company of South Africa (Acsa) for a 132.9% hike in airport tariffs is approved, it could have a major impact on the South African economy.

In a statement Iata declares that the planned increases will mean that the average airport tax that an international traveller to South Africa has to pay will rise from R221 in 2009/10 to R640 in 2011/12.

The possible loss of visitors in 2010/11 could cost the domestic economy as much as R1.58bn.

Jeff Poole, Iata's director for operating costs, fuel and taxes, says the reason for the tariff hikes is unacceptable.

He says that not only is Acsa building unnecessary airports, but it also has no control over its operating costs.

According to its tariff application, Acsa expects to exceed its total operating expenditure budget for the period between 2007/08 and 2011/12 by R1.8bn, says Poole.

This budget was drawn up at the time of Acsa's previous tariff application.

It is evident, he says, that Acsa cannot control its expenses. Personnel costs will, for instance, now be 31% more than budgeted for during the previous tariff determination.

In 2011/12 this figure will be about 53% over budget.

In a statement Acsa simply told Sake24.com that it did not believe that passenger transport volumes would be significantly affected by the tariff increases.

It claimed that a small number of people would be discouraged, as had been seen in 2008 when the oil price sent costs sky-high.

Acsa wants a 132.9% increase in its 2010/11 financial year, and a further 24.4% in 2011/12. This would mean that the airport tax per domestic passenger would rise to R185.

If one accepts that low-cost airlines charge an average of R500 for an air ticket between Johannesburg and Cape Town, the tariffs that Acsa is demanding would amount to 37% of the total cost of a ticket.

- Sake24.com

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