Low-cost airline 1time has reacted angrily to Airports Company South Africa's move to increase passenger service charges by 9,8 percent for the remainder of this year and then increase them by an average 11,4 percent per year for the next five years.
This will increase overall ticket prices dramatically.
The passenger service charges are the component of airport taxes that go to Acsa. The increase means all departing passengers will pay R47 to Acsa for domestic flights, R97 for all regional flights, and R128 for international flights.
The extra money generated by the passenger service charges will go towards the five-year improvement programme which is expected to cost R19,3-billion to improve airports around the country.
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'Acsa is the most profitable airports company in the world.' But airline operators are not impressed and Glenn Orsmond, CEO of 1time, feels increases could have been avoided.
He says Acsa should have been investing profits over the past five years to accommodate growth in the market, but instead gave it to shareholders.
"What really irritates the airlines is that Acsa is the most profitable airports company in the world.
"It makes operating profits at 50 percent of revenue compared to airlines which make approximately 6 percent."
Orsmond said the air travel market in South Africa had grown by 70 percent in the past five years and airport taxes should have fallen but instead have increased dramatically.
'Service standards at the airports are shocking' "Acsa make profits of close to R1 000-million a year. Instead of investing these profits in infrastructure over the past five years to accommodate this growth, they have paid this out to their shareholders.
"Now that their infrastructure is inadequate they squeeze the same passengers and airlines. Effectively, by not investing for the past five years, they are making the passenger pay twice," he said.
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