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Massive cut in airport fees from April 2017

Massive cut in airport fees from April 2017

Airports Company South Africa has confirmed that it will be reducing airport charges by a massive 35.5% from April 2017.

The confirmation follows the announcement on Wednesday that it was reviewing the impact of such a reduction, while seeking approval from stakeholders.

According to ACSA, the new permission will take effect on 1 April 2017, and sets out aircraft landing fees, aircraft parking fees and the passenger service charges that Airports Company South Africa can levy.

The permission was determined by the independent industry Regulating Committee.

The new tariff decision will see a reduction in airport charges of 35.5% for the 2017/18 financial year. These charges will then rise by 5.8% in the 2018/19 financial year and 7.4% in the 2019/20 financial year.

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

  • Passenger service charge per departing domestic passenger: R82 (down from R127);
  • Passenger service charge per departing passenger for an airport within Botswana, Lesotho, Namibia or Swaziland: R169 (down from R263); and
  • Passenger service charge per departing international passenger: R223 (down from R346).

The company noted that, outside the aforementioned price changes, other fees like aircraft landing fees and aircraft parking fees will also be impacted, but these vary according to the maximum take-off weight of an aircraft and length of stay.

Both of these sets of charges vary further according to whether the flight originated within South Africa, Namibia, Lesotho, Botswana or Swaziland or outside of South Africa, the group said.

While these 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.

Airport taxes are typically bolted on (and overlooked) charges attached to air tickets. While the passenger service charge is the main cost directly carried over to consumers, airlines may or may not filter any of its other duties as part of the ticket price.


Read: Flights in South Africa could get cheaper in 2017


BusinessTech's Staff Writer is directly plugged into the South African Internet backbone, and spits out press releases and other news as they receive it. They are believed to be cl...
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  • Madimetsha

    will airline tickets be slashed by 35% also?

    • Why should they when flights are full and returns are well below acceptable levels globally?

      • Skerminkel

        Competition

        • Competition has already lowered the real cost of flight tickets by 63% over the past two decades.

          • zerohero

            Maybe in the USA as your quote suggests dollar prices. Here in South Africa we pay rand boet.

          • This is a global IATA report hence in dollars that is the universal operating denomination. Weakening Rand is not an airline issue but a country one and therefore not relevant to the sector.

          • Skerminkel

            Indeed, but competition will also force operators to pass the savings on to passengers.

          • Mohamed Patel

            You also need to consider technological advancements, increased scale, etc.

            these probably had as much, if not more of an effect on pricing than competition

          • Skerminkel

            Competition will force operators to pass the savings on to consumers. That is separate from the reasons for the reduction in airport fees. The reasons you state might well contribute, but then the reduction should have been gradual. To me it sounds like they have been profiting unduly for a number of years and are only forced to reduce rates now.

    • Literally Mario

      “While these 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[s]…”

    • The reality: “The average return fare
      (before surcharges and tax) of $351 in 2017 is forecast to be
      63% lower than 22 years earlier, after adjusting for inflation.”

  • Don

    It’s cheaper to park a plane at the airport than my car!

    • Paul Dickson

      Exactly. Long stay parking at OR tambo is R75 for 24 hours. If you could park on the air side, and if your car’s “maximum take off weight” is 2 000kgs or less, it would cost you R48.11 (according to the table above).

      • Lindo

        Its cheaper for the same reason as buying in bulk

  • Skerminkel

    The story begs the question: How were they allowed to charge so much, if they can absorb a 35% cut?

    • Paul Dickson

      They had to jack up fees to service the debt taken on to fund the airport upgrades for the 2010 world cup. If memory serves, there was a huge outcry at the time (about six / seven years ago). now the Regulator is forcing fees down again. Would be good to have that kind of Regulator for other things.

      • Skerminkel

        Aah, thanks.
        Sadly we have many regulators, like ICASA, but very much toothless.

      • brz

        Wonder why this was not mentioned in the article? It’s such an obvious question.

  • Runnin Bare

    Parking charges are long over due. Flights often delayed so parking costs more than a cup of coffee if flight half an hour late. Restaurants lose out.
    Australia have a waiting area outside the airport with flight arrivals displayed so one can drive and pick up on a phone call or message. Massive pick up parking in Cape Town, never seen it more than 20% full. Doesn’t make economic sense.

  • Willie

    1 April 2017? April fools day?

  • aknit

    Lol. Let’s just see how sustainable this is…..

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