The Department of Transport has approved a staggered tariff increase for Acsa, starting April 1. This follows plans to expand South Africa’s airports.
After Acsa initially requested a 17,5% tariff hike, the Department of Transport and the regulatory body for the airports company granted an increase that will take effect at the end of each of Acsa’s financial years as follows:
- 4,5% in 2023/24,
- 10,3% in 2024/25,
- 6,51% in 2025/26,
- 6,16% in 2026/27,
- 4,45% in 2027/28.
“These final tariffs… have been determined in the aftermath of COVID-19 when the aviation sector in the country is gearing itself to restore economic activity and also return to pre-pandemic performance levels,” said Sindisiwe Chikunga, Minister of Transport, during a press briefing on Tuesday.
While there are concerns that the tariff increase could result in a slower return to profitability for Acsa, local airlines have responded positively to the news.
“The 17,5% increase that was tabled was very significant. Lower taxes mean lower costs for consumers. We, as an airline are obligated to pass this charge on to consumers, and all they see is a ticket price – they don’t see both sides of the story,” commented Kirby Gordon, Chief Marketing Officer for FlySafair.
In addition to the increase, the Minister also revealed that the Air Services Licensing and International Air Service Licensing Councils would be managed under the South African Civil Aviation Authority. The change came into effect from February 1.
