ACSA is in the process of approving a 35.5% decrease to airport charges in the 2017/2018 season, according to a recent announcement made to shareholders.
If approved, the large decrease could be applied to the charges that make up a significant portion of the total cost to fly in South Africa.
Airport charges are an additional (and sometimes overlooked) charge that is coupled on to the total cost of an air ticket – it’s the cost to use the airports themselves, on top of the cost to travel with your selected airline.
The airport charges include (but are not limited to) a passenger service charge, a Civil Aviation Authority (CAA) charge, an Aviation Co-Ordination Services charge an air passenger tax, an airline aviation insurance premium, an aviation fuel surcharge, and VAT.
If implemented, the decrease would follow a 0% increase in levies during the 2015/2016 and 2016/2017 financial years – but would then be followed by relatively small increases of 5.8% in 2018/2019 and 7.4% in 2019/2020.
Before these changes can be fully implemented, however, ACSA plans to “assess the implications” of the changes, in order to continue maintaining a “prudent financial profile”, it said.
“The company will engage with investors and rating agencies once the details of the response to the final determination are approved by the company’s Board of Directors,” it said.
While these proposed price changes will not affect the actual ticket pricing (which are determined by the various airlines and sellers), any reduction in the fee will mean cheaper flight costs travelers arriving and departing from South African airports in 2017.
As an added bonus, a recent comparison done by Cheapflights, showed that South Africans are getting a better deal for air travel when compared to last year this time.