50 000 jobs: Acsa unveils new growth plan

Acsa owns and operates major local airports. File picture: Sibusiso Ndlovu

Acsa owns and operates major local airports. File picture: Sibusiso Ndlovu

Published Sep 26, 2016

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Johannesburg - The Airports Company South Africa (Acsa) says it plans to create 50 000 jobs in the next nine years as part of a new corporate strategy to grow the airport management company.

Acsa chief executive Bongani Maseko said the company had posted record profits for the year to March and had finalised its 2025 corporate strategy to help it develop its footprint inside and outside of South Africa.

Maseko said the company also wanted to improve efficiencies and customer experience, as well as developing airports using the aerotropolis concept, to stimulate economic activities in the areas in which airports are based as part of the strategy.

Maseko said the state-owned company, which manages nine airports, including OR Tambo Airport, Cape Town International and King Shaka International in Durban, created 23 505 job opportunities in the year under review.

He said the company had allocated R4.5 billion for 2017 to 2019.

“The job opportunities will be created from our capital expenditure without outside help,” Maseko said.

Chief financial officer Maureen Manyama said the company had continued with its de-leveraging strategy, and R1.5bn of debt was repaid in the financial year under review, which brought the total repaid over the past five years to R7bn. Total expenses declined by 1 percent to R4.4bn.

Acsa’s profits jumped 20.3 percent to R1.96bn, from R1.6bn in 2015, and revenue rose by 6.8 percent to R8.3bn in the year to March 2016, from R7.8bn in 2015, according to the financial results for the year to March released on Friday.

The company planned to cut R200 million in costs in the next year through improving its supply chain management.

It said current debt was R9.8bn and R2.9bn was due in the next three years.

Equity losses

A R343m dividend has been proposed for the year under review. However total equity losses were R690m, from R155m in 2015.

Manyama said Acsa had equity investment in the Guarulhos International Airport, Sao Paolo, Brazil and the Chhatrapati Shivaji International Airport, Mumbai, India.

About R622m of the costs were attributed to the company’s share in its concession in Brazil.

“The economic climate in Brazil is not conducive for business,” Manyama said.

Acsa’s loss from Mumbai was R85m. This was due to higher finance costs on borrowings and the higher depreciation of a new terminal building, being terminal two, she said.

Maseko said Acsa had a 20-year concession in Brazil and it was in its fourth year. It had a 30-year concession with Mumbai, with the option for it to be extended for another 30 years.

“We do not believe the downturn in Brazil would continue for 20 years. We see the Brazilian economy picking up. We believe that the market will grow,” Maseko said.

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