SOuThERN AFRiCA’S TRAVEL NEWS WEEKLY
April 14 2010 I No. 2102
INSIDE
TRAVEL NEWS WEEKLY
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NEWS
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cruIsE E-tIcKEts No threat to agents
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CSA is going to the courts to squeeze its Regulating Committee for a higher tariff increase. This follows last week’s surprise announcement that the airports authority would only be allowed to increase its tariffs by 40,7% and not the 133% it had initially requested (see TNW April 7). Acsa’s proposed 133% tariff hike was aimed at prefunding its infrastructure development programme, which it maintains is “necessary and appropriate”. “Over the last three years, Acsa invested R16bn in infrastructure development, largely financed through debt,” says Acsa group executive: communications and brand management, Nicky Knapp. The investments, adds Nicky, were made on the basis that Acsa would be reimbursed through tariffs once the infrastructure was in operation. “Acsa warned the Regulating Committee and industry at the time, the ruling for Acsa to prefund would lead to significantly higher tariff increases when the assets came into operation.” And significant the proposed increases were, as Acsa’s passenger charges, landing
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How the job has changed over 40 years Page 2
fees and rentals (currently R81) were set to rise to over R185pp per single trip if Acsa had had its way. Refusing to accept the Regulating Committee’s ruling, Acsa is now taking its argument to the courts, challenging the increase it was given and attempting to force a withdrawal. Acsa alleges that there are inconsistencies in the way that the regulatory rules by which it is governed are interpreted and that the only way to “ensure improved certainty, transparency, fairness in risks and rewards and predictability going forward” is by going to the courts. But Acsa has enough funds to keep its facilities up to standard, say airline representatives. The number of projects undertaken by the airports authority, they claim, were unnecessary, especially the new airport in Durban (see KSIA story on page 20). Airlines feel the life of the current airport could have been extended at minimal cost. “There was no economic sense in building a brandnew airport,” said one airline representative, who believes the cost of KSIA accounts for nearly 50% of the tariff increase. Acsa, which built KSIA R4bn
A top destination for 2010
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Acsa brings tariff battle to the courts natalia thoMson
fEaTurE
EvOlutION OF thE trAv A El AgENt Av
over budget for an entry level of over 7m passengers (while only 4,3m currently use Durban International), is now faced with filling a significantly larger airport than airlines claim was required. Acsa had been asked to delay all essential building until a “consistent, prolonged and viable increase” in passenger numbers had been achieved, the airline representative told TNW. The extent of the projects, said airlines when the steep increases were proposed, was an “attempt to improve the visitor and media perception of the country through grand and impressive ports of entry and to provide capacity for a single event with a duration of one month at the expense of airlines, as the majority of the cost increases are in the form of increases to the airlines themselves”. Acsa alleges that airline associations, together with Iata, believe Acsa should not be remunerated at all for the R16bn invested but that these players have benefited from low tariffs in the past. “Tariffs have remained very low over the years in spite of the significant investment increases in infrastructure and customer service improvement.” n
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radisson Blu gautrain opens soon!
Opening on May 5, the new Radisson Blu Gautrain Hotel in Sandton will be only 12 minutes by Gautrain from OR Tambo. Offering 216 guest rooms, the hotel is located in a multi-purpose building with retail floors, offices and conference floors in addition to the new rooftop bar, ZAR. Book now on your GDS (code RD)! Getting cosy are, from left, Jorrit Van Lubek, financial controller, Bernard Thomas, front office manager, Salma Carrim, assistant financial controller and Pontsho Dikobe, assistant front office manager Photo: Tijana Huysamen
2010 collusion inquiry persists SOUTH African Airways and Mango are suspected of having withheld information about collusion on ticket pricing for the 2010 World Cup. The offices of the airlines, as well as those of the Airlines Association of Southern Africa, were recently raided and documents and
electronic data were seized as part of the Competition Commission’s investigation. The information, says the Commission, will be analysed together with other information gathered to “determine whether a contravention of the Competition Act has taken place”. n