ACSA

A I R P O R T S C O M PA N Y SOUTH AFRICA

George Airport (c) ACSA

AIRPORTS COMPANY SOUTH AFRICA

Award-Winning ACSA

Dominates SA Skies PRODUCTION: Manelesi Dumasi

The aviation industry in Africa is set to unlock major economic opportunity and in South Africa, Airports Company SA is preparing its three major international hubs for consistent growth in numbers over the coming years. www.enterprise-africa.net / 3

INDUSTRY FOCUS: INFRASTRUCTURE

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Everyone knows that the opportunities for growth in South Africa are immense. So many unexplored opportunities remain, and the lure for local and international investors is strong – especially after the election of Cyril Ramaphosa to the country’s top job. His cleaning up of government and state-owned enterprises has gone a long way, helping South Africa to emerge from recession in 2018’s third quarter.

Traditionally, South Africa has been known for its mineral resources – buried deep underground – but major prospects also exist high above the surface, in the sky. Currently, Africa is the second largest continent by population but levels of domestic air travel are still low. Africa’s aviation industry represents just 2% of the global market. Growth potential is enormous - passenger traffic comes mainly from 10 African countries, that’s around 600 million. Just a 1% traffic

increase from the other half of the African population, there will be an increase of around six to seven million passengers every year. most commentators agree that the key to development in the African skies is inclusive government policies and robust state support.

In South Africa, one of the few trusted, well-run and profitable government businesses is Airports Company South Africa (ACSA), and its support for the aviation industry is, and has always been, resolute. This award-winning business exists to own and operate the nine principal South African airports, including the three main international gateways of O.R. Tambo, Cape Town and King Shaka International Airports.

With tourism one of the key focus industries for job creation and economic development, an effective on-the-ground infrastructure is necessary to facilitate an efficient operation in the skies.

// BEING NAMED AFRICA’S LEADING AIRPORT FOR THE SECOND YEAR IS EXTREMELY GRATIFYING AND REINFORCES THE HARD WORK AND COMMITMENT TO EXCELLENCE DEMONSTRATED AT THIS AIRPORT IN THE PAST 12 MONTHS // ACSA has been preparing for a strong future by investing heavily in its infrastructure, picking up a number of industry awards, and solidifying international relations.

AWARD-WINNING Through October and November, ACSA airports picked up a number of awards for various specialisms. Cape Town International was named, at the 25th World Travel Awards Africa & Indian Ocean Gala Ceremony, as ‘Africa’s Leading Airport’ for the second consecutive year.

Industry professionals from across the continent were on hand to witness the win for CTIA. The independently assessed awards are some of the most sought-after across the sector.

Deidre Davids, CTIA Senior Manager: Corporate Affairs said: “Cape Town International Airport is honoured to once again receive this very important accolade. Being named Africa’s Leading Airport for the second year is extremely gratifying and reinforces the hard work and commitment to excellence demonstrated at this airport in the past 12 months.”

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AWESOME AFRICA, NOW MORE ACCESSIBLE With our expanding network we provide seamless air freight solutions from South Africa to the world, via our global hub in Dubai. Business is booming across the African continent and Emirates SkyCargo, in association with our airline partnerships, connects African business with the rest of the world. From precious metals to the finest foods, we’ve got you covered.

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INDUSTRY FOCUS: INFRASTRUCTURE

Kimberley Airport (c) ACSA

CTIA is a vital entry point for South Africa, growing by 5.3% in passenger numbers in 2017.

There was also success in Durban for King Shaka International Airport which was given an award for Aviation Security. The inaugural Civil Aviation Industry Awards were introduced by the South African Civil Aviation Authority to recognise excellence across the industry.

KSIA’s Security Awareness Campaign was lauded for its impact on the airport community and the focus on ensuring safety and security.

Terence Delomoney, KSIA General Manager, said on receipt of the award at a ceremony in Johannesburg: “The recognition is a testament to the hard work and dedication from our staff members and volunteers and the partnership with our stakeholders in delivering on excellence.

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“We are committed to mirroring government’s ongoing agenda, as aviation is integral part and an economic driver to the growth and success of the aviation industry.”

KSIA Senior Security Manger, Claudia Daniels said: “We see our involvement to continuously improve our safety and security services as a fundamental collaboration with our airport community in order to advance our aviation industry.”

Displaying commitment to the country’s environmental targets, ACSA was given ISO certification and Level 1 carbon accreditation in November, further reinforcing the company’s position as an industry leader.

All nine airports under the company’s management have been certified as compliant with the mostrecognised international standard for

environmental management systems, ISO14001: 2015. Four airports received Level 1 carbon accreditation and three are building solar energy plants.

ACSA Chief Operating Officer, Fundi Sithebe, said: “The ISO certification is used worldwide for companies to map out a framework that they can follow in setting up an effective environmental management system.

“Our certification involved significant aspects for the environmental performance improvement of our nine airports such as fuel handling, waste disposal from both terminals, aeroplanes and engineering. We are very proud of this ISO certification as it affirms Airports Company South Africa’s commitment to operating our airports in an environmentally responsible and sustainable manner.”

AIRPORTS COMPANY SOUTH AFRICA

// THE ARRIVAL OF BRITISH AIRWAYS FOR THE DURBAN-TO-LONDON ROUTE WILL MAKE AN IMPORTANT CONTRIBUTION NOT ONLY TO GROWING PASSENGER NUMBERS BUT ALSO TO ENHANCING THE INTERNATIONAL STATUS OF KSIA AS A HUB FOR ECONOMIC GROWTH IN THE REGION // SKY-HIGH PARTNERSHIPS ACSA’s airports are responsible for 40 million arriving and departing passengers each year. but, with constant investment in tourism locally, and an appetite for visiting continent growing around the world, those figures look set to grow.

This was signified by a recent deal between British Airways and KSIA. The arrangement will see the flagship UK

airline travelling non-stop between Durban and London three times a week.

British Airways will fly the Boeing 787-8 Dreamliner all the way over the continent arriving in KwaZulu-Natal in just under 12 hours. The 100,000 people who make the trip each year are the targets for BA. Delomoney, who was present when the first London to Durban flight arrived, said: “King Shaka International

Airport is a strategic member of the air access partnership with the KZN Route Development Committee - DURBAN DIRECT which has enabled the province to significantly expand its tourism, business, and trade offers.

“The arrival of British Airways for the Durban-to-London route will make an important contribution not only to growing passenger numbers but also to enhancing the international status of KSIA as a hub for economic growth in the region. Our passenger numbers have risen steadily in recent years with an average increase of 8% a year over the last three years. KSIA handled some 5.6-million passengers during the 2017/2019 financial year, and we are forecasting that we will handle 5.9 million passengers by the end of the current financial year; we are confident that we will see more growth in the coming years.”

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INDUSTRY FOCUS: INFRASTRUCTURE

// WE ARE VERY PROUD OF THIS ISO CERTIFICATION AS IT AFFIRMS AIRPORTS COMPANY SOUTH AFRICA’S COMMITMENT TO OPERATING OUR AIRPORTS IN AN ENVIRONMENTALLY RESPONSIBLE AND SUSTAINABLE MANNER // Highlighting the impact of the deal on the local economy, and also praising the industry, Cllr Zanele Gumede, eThekwini Mayor said: “As the city of Durban, we wish to extend a warm welcome to British Airways, as they launch their inaugural flight connecting Durban directly to London.

This new route will enhance our global connectivity, further driving

Cape Town Airport

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growth in our tourism sector, by stimulating demand for our tourism product offering, and creating new opportunities to expand our tourism offerings for local operators.

“Furthermore, research has shown us that there is an emerging trend of travellers from the UK and the US markets, who tend to look for authentic travel experience when travelling

abroad, seeking out experiences that will allow them to interact with normal people leading their daily lives. This is a huge opportunity for aspiring entrepreneurs and tour operators, to provide this market with a growing inventory of new experiences, within and around our city, such as exploring our rich heritage trails, creating new experiences around township tours and city walks, in addition to letting visitors enjoy our warm beaches and cosmopolitan lifestyle in the city.”

Hamish Erskine, CEO of Dube TradePort Corporation – the SEZ company where the airport sits commented: “We see air connectivity is the catalyst to opening up new markets from both a passenger side and the movement of goods, which is critical to growing tourism and

AIRPORTS COMPANY SOUTH AFRICA

economic development in the region.

There has been a concerted effort to grow air services into Durban, an intergovernmental structure comprising the Airports Company South Africa, Department of Economic Development, Tourism & Environmental Affairs, Dube TradePort Corporation, Tourism KwaZulu-Natal, Trade and Investment KwaZulu-Natal, KwaZuluNatal Department of Transport and the Municipalities of eThekwini and Ilembe has been established to coordinate and promote international air services into King Shaka International Airport, under the umbrella of Durban Direct.”

HIGH FLYERS At the end of November, ACSA announced that Bongiwe Mbomvu would take the reins as Acting CEO following the completion of term by Bongani Maseko who was with the business for 18 years.

Mbomvu, who has been with ACSA since 2013, previously headed up the company’s Governance and Assurance department. A legal professional and attorney by training, she has held senior positions with various financial institutions and utilities. ACSA’s board has stated that the search for a permanent replacement for Maseko will continue.

Of course, the company remains extremely busy, catering for the needs of the biggest airports in the country, and completing work in Mozambique, Zambia, Ghana, Liberia and Brazil.

Financial reports for the year ending March 31 were released in September, showing revenue of R6.9 billion and EBITDA of R3 billion. The company said it was pleased with the results considering a 35.5% reduction in aeronautical charges.

“The company still maintains a very strong balance sheet as a result of conservative financial management practices. Interestbearing debt was reduced further

by R490-million during the year, reducing the company’s gearing ratio

to only 22%,” said ACSA. Commenting on movements through its airports, ACSA was positive: “Aircraft landing volumes grew by 1% for domestic flights and by 3% for international flights.

The Company reported a total of 20.2-million (2017: 19.3-million) departing passengers from the nine airports it owns and operates.

“Domestic passenger growth was 4% with good growth of 5% in international departing passengers.

This was largely due to the successes of the air access initiatives for Cape Town International Airport and King Shaka International Airport.”

Currently, ACSA is busy with upgrades and improvements at KSIA, spending R420 million on a taxiway extension and construction of two new remote aircraft stands. With

the new traffic from London as well as growth in traffic from regions in the Middle East and Indian Ocean Islands, it is vital that the airport is ready for expansion.

“King Shaka has had a compound annual growth of 8% in passengers over our last three financial years.

Capacity on the international side is coming under pressure‚ so we need additional stands to deal with both increased international traffic and any diverted flights from Joburg‚” said Delomoney

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