Tariff hike reports premature: Acsa

Jun 01 2011 18:02

Johannesburg - Kulula.com's announcement on Wednesday that it was rising tariffs by 35% was "jumping the gun", the Airports Company of SA said.

"Their comment is based on a letter whose validity is in question," Acsa spokesperson Solomon Makgale said.

Kulula.com had complained about the increase, saying it came at a time when average airfares were declining and fuel prices increasing.

"Budget-sensitive travellers will be the hardest hit, as half of airfares will now go towards Acsa's airport charges", Kulula.com said.

However, Makgale said they had not increased their tariffs since last year after they challenged the percentage increase granted by the airports regulating committee for 2010/11.

They had been granted a 40.7% increase last year, but said it was less than the 132% they needed, so they took the matter to court. The court set aside the tariffs and ordered a regulating committee to submit the tariff adjustment to the minister of transport for consideration and approval.

The minister set up a task team to independently asses the proposed permission they required and advise him. The minister then asked the regulating committee to consider concerns raised by the task team and resubmit a revised permission by the end of February 2011.

After that, Acsa received a letter on May 20, 2011 on the adjusted tariffs. They asked whether the regulating committee had submitted a new permission to the minister for approval.

"We were made to believe that the Regulating Committee has not."

In the meantime, any increase was still on "hold" and Acsa still charging last year's fees.

Current charges are: for domestic R57.02, regional (Botswana, Lesotho, Namibia, Swaziland), R117.54, other international centres R155.26, all excluding VAT.

Makgale said the statement by Kulula.com was an attempt to obscure the fact that airlines had considerable costs, "disguised as so-called 'airport charges', hidden in their overall ticket price". 

acsa  |  kulula



Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Are you participating in #BackFriday sales?

Previous results · Suggest a vote