ACSA Trariff Reduction is Good News for Air Travel
2017 could be the year for cheaper air travel in South Africa.
April 2017 - The Airports Company South Africa (ACSA) has announced a 35.5% reduction in airport charges, which take effect on 1 April 2017.
The new tariff decision, determined by the Independent Industry Regulating Committee, will translate to a decrease in airline costs such as landing fees, aircraft parking fees, and passenger service charges for both domestic and international departures.
Said Kirby Gordan - Head of Sales and Distribution at FlySafair, "There's no doubt that the reduction in this tariff is excellent news for the industry and the consumer collectively.
Overall pricing of tickets is a complex issue where we need to consider several factors. Fuel alone can account for 40% of direct costs, so our exposure to the rising price of oil and a weakening Rand tends to have a stronger influence on fares. That said, the decrease in these tariffs is great and is a saving that we will most certainly seek to pass onto our customers."
The new ACSA passenger service charges are as follows (VAT included):
- • 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)
- • Passenger service charge per departing international passenger: R223 (down from R346)
Though ACSA's tariffs could translate into much needed reprieve for air travellers, they should keep in mind that these charges are set to increase again by 5.8% during the 2018/19 financial period, and by 7.4% in the 2019/20 financial period.