ACSA to drop airport taxes by 35,5%

As from 1 April 2017, a 35,5% reduction in airport taxes will come into effect at Airports Company South Africa airports. These include aircraft landing fees, aircraft parking fees and the passenger service charges that Airports Company South Africa (ACSA) can levy.

The new permission to levy airport charges at ACSA airports was promulgated on 23 December 2016 with the results subsequently published in the Government Gazette on 29 December 2016, having been determined by the independent industry Regulating Committee.

“We would like to thank the Regulating Committee for all its hard work. We are happy that this process has finally concluded, and all role players in the industry can now have regulatory certainty,” Bongani Maseko, the Chief Executive of Airports Company South Africa, commented.

The 35,5% reduction will run for the 2017/2018 financial year. In 2018/2019 financial year, these will increase by 5,8% and 7,4% in the 2019/20 financial year.

The new passenger service charges (with prior year passenger service fees) are as follows:

  1. Passenger service charge per departing domestic passenger: R82 (R127) incl. VAT;
  2. Passenger service charge per departing passenger for an airport within Botswana, Lesotho, Namibia or Swaziland: R169 (R263); and
  3. Passenger service charge per departing international passenger: R223 (R346).

“It is important to note that the Final Permission is in line with Airports Company South Africa’s expectations and what was proposed to the Regulating Committee. We anticipated this outcome for some time, and factored it into our financial and business planning,” shared Maseko.

While the reduction has been largely welcomed by travellers, some airlines have raised their concerns, stating that the reduction is not enough. In a fin.24 article, Erik Venter is said to have stated that while the relief is welcome, it “does not go far enough.”

 

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