Is South Africa using the World Cup as an excuse to fleece the aviation industry?

The Airports Company South Africa (ACSA) has requested a 241% hike in charges, prompting IATA to suggest it may be using the World Cup as an excuse to rob the aviation industry by inflating infrastructure charges.
With nine cities in South Africa hosting the FIFA World Cup in June, long-haul operations are expected to bring about 350,000 visitors to the country, and domestic services will also be needed to cover the 1,000-plus miles between host cities.

Along with issues including regional challenges for the industry, infrastructure charges, liberalisation, safety, security and the environment, the hottest topic is the proposed 130% increase in charges by the South African Regulating Committee. While this is somewhat less than ACSA’s request for a 241% increase over a five-year period, the hikes are still enormous.

Unacceptable

"The charge increases are totally unacceptable," says Jeff Poole, IATA director of Industry Charges, Fuel & Taxation. "IATA is very concerned that the proposed increases might allow inefficiencies and scope changes that ACSA has built in during recent years."

IATA also has concerns over the charge proposals presented by ATNS, the air navigation service provider. "As an industry, we cannot accept a situation where airports or ANSPs are rewarded for inefficiency," says Poole. "Given the unprecedented industry crisis, it is impossible for airlines to comprehend the proposed charge increases both for ACSA and ATNS."

"South Africa must not use the World Cup as an excuse to rob the industry by inflating infrastructure charges," says Giovanni Bisignani, IATA director general & CEO. "Proposals for a 59.9% increase in airport charges and a 42.6% increase in air traffic control charges are divorced from reality and completely unacceptable. When airlines are fighting for survival, such proposals are an embarrassment that must be resolved before the world comes to visit in June."

Overkill

The price increases are primarily the result of the many upgrades undertaken by ACSA in preparation for the World Cup, most notably the new King Shaka International Airport at La Mercy in Durban.  While the old airport was undoubtedly past its sell-by date, the new one is a perfect example of overkill.

With a capacity of 7.5 million passengers a year and the potential to expand to 45 million passengers, it’s about ten years ahead of its time according to capacity projections.

Airlines claim there was little consultation on the new airport project, which now offers them something they don’t need in Durban.

Furthermore, the new fees involve a high degree of cross-subsidisation, with fee increases at Cape Town to partially finance the building of Durban’s new airport.  Thus many airlines flying into South Africa will be paying for the Durban airport, whether they use it or not.

Apart from regulations requiring ACSA to pre-fund all development, only recouping the money when the infrastructure comes online, severe cost over-runs have also impacted the whole project.

Cost over-runs

Compared with the original guestimate of ZAR3.1 billion (approx. US$409m), the latest estimates are in the region of ZAR6.8 billion (approx. US$900m).

Capacity at Johannesburg and Cape Town International Airports has also been increased, and improvements in the pipeline are valued at ZAR12.6 billion (approx. US$1,7 billion) up to 2015 alone. IATA fears that ACSA may be tempted to pursue developments at the two airports despite declining passenger traffic, which will result in significant fee increases.

Air traffic management in the region has improved, and so have air navigation charges, with ATNS wanting to increase staff and related costs by 83% by 2015.

According to Chris Zweigenthal, CEO of the Airlines Association of Southern Africa, (AASA), there is some doubt as to whether the new airport at La Mercy was even necessary in the first place.

While it would have been required at some point in the future, it appears that its construction was driven by government directives and the need for a new airport to cope with FIFA World Cup traffic.

However, AASA believes that, with minimal investment, the life of the old Durban International Airport could have been extended by another five years.

Quelle: eyefortransport
Portal:  www.logistik-express.com 

Schreibe einen Kommentar

Translate »