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.