Johannesburg - The International Air Transport Association (Iata) says not only is the King Shaka Airport near Durban unnecessary, but airlines and passengers who will not use the airport are expected to subsidise it.
This is because Acsa hopes to increase its tariffs by 133% at all its South African airports from April 2010 - inter alia to pay for the construction of the airport.
Jeff Poole, Iata director for operating expenditure, fuel and taxes, says airlines had not asked for the new airport at La Mercy, 50km from Durban.
Moreover, he points out, only one or two international airlines fly to Durban. Now all those flying to South Africa have to help pay for the new airport they won't even use.
Poole reckons had there been a healthy business plan for the airport, it would not have been necessary to hike airport tariffs to such a degree.
"But a proper business plan has never been drawn up to show that La Mercy makes financial sense. If there is one, we have certainly never seen it."
Moreover, he continues, if Acsa claims it is building the airport because volumes are increasing, then costs should come down. Or, he comments, perhaps he misunderstands the principle of economies of scale.
Poole says the real cost of the new airport, which would originally have been R3.1bn, is closer to R7bn.
Acsa acknowledges that expenditure on the airport has risen, but says the initial R3.1bn to which Poole refers was a very provisional estimate.
The cost of the project, once the details became clearer, was R5.8bn.
Further, Acsa says that it had consulted with all players, including airlines and the Airlines Association of Southern Africa (AASA).
Everyone, the company says, had agreed on the anticipated future air-traffic volumes, as well as the infrastructure requirements for South African airports.
Government pressure
AASA CEO Chris Zweigenthal says airlines were indeed consulted and had agreed with Acsa on the future outlook for passenger volumes, but this was not entirely so with regard to Acsa's capital construction programme.
He says that the airports company had been to a large extent pressurised by government to make hasty decisions, such as on the construction of the new airport, without proper consultation with the airlines. As a result the airlines had, for instance, not been consulted about the proposed design for the new airport.
Poole agrees, and says this basically means that the airport was built without asking airlines what they needed.
As a result, according to Zweigenthal, the new airport had a number of design faults, which could restrict international use of the airport.
There is currently sufficient parking space beside the airport building for only two widebody aircraft such as the Airbus A350 or the Boeing 747 - the types used on international flights to South Africa.
Zweigenthal says Acsa was pressurised by government to undertake simultaneously three large capital-intensive projects which are now putting strain on its balance sheet.
"Acsa was told to make sure that La Mercy, OR Tambo and the Cape Town airport would be ready in time for the Fifa 2010 World Cup soccer tournament." This put great pressure on the company, which had performed "wonderfully" by indeed completing the project in time, but now the passengers and airlines have to help foot the bill.
Acsa says the tough schedule was the main reason for the cost escalation.
Poole says Acsa's shareholder - government - should instead put equity into the company to support Acsa financially.
Airlines, he says, are experiencing the most difficult economic conditions in their lifetime, having lost $11bn this year. Now they are being hit by these ridiculous tariff increases in South Africa. If politicians want to erect such momentous symbols, they should not expect the industry to pay for them.
- Sake24.com
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