A massive airport tariff hike imposed by Airports Company South Africa in October last year hindered the ability of airlines to increase ticket prices to recover an escalating fuel price, and was therefore a contributing factor in the demise of Velvet Sky and the application for business rescue by 1time.
This is the word from Comair ceo, Erik Venter, in reaction to Acsa’s announcement that it has returned to profitability largely on the back of a 67% hike in airport tariffs last year. Acsa reversed a 2011 loss of R221m into a R188m profit for year ending March 31, 2012.
Iata director of industry fuel, charges and taxation, Hemant Mistry, says Acsa’s tariff increases compounded the effects of the recession and ongoing high fuel costs for airlines, resulting in some airlines operating in South Africa having to axe destinations that became unprofitable.
To read the full article see TNW dated September 26.
