Airport upgrades gather pace
15 August 2008
Airports Company South Africa has spent over R5-billion on improving facilities at airports around the country, and remains committed to delivering "quality aviation infrastructure" to meet the country's needs for the 2010 Fifa World Cup and beyond.
Presenting the company's financial results in Johannesburg this week, Acsa chairman Franklin Sonn said the company had also started a five-year, R22-billion capital expenditure programme to cater for future growth in air travel.
Of this amount, he said, about 62% would be spent in the first three years leading up to the World Cup.
Also at the presentation was Transport Minister Jeff Radebe, who said the government would work closely with the airports operator. "We will stay close to Acsa to ensure business sustainability and timely delivery of the critical infrastructure necessary for the biggest marketing opportunity for our country, the 2010 Fifa world cup," he said.
Highlighting some of the key features of the financial year under review, Radebe said Acsa nearly tripled the previous year's investment infrastructure developments by spending R5.2-billion.
This sum included upgrades and new developments worth R1.7-billion on OR Tambo International Airport outside Johannesburg, R603-million on the Cape Town International Airport and R298-million on smaller domestic airports countrywide.
In addition, R1.9-billion was allocated for both upgrades at Durban International Airport, as well as the greenfields international airport development at La Mercy, to the north of Durban.
"We trust that you will continue focusing on efficiency in revenue and cost, while keeping your eyes on 2010 deliverables," he said, commending the airports company for delivering good financial results despite the challenging economic environment.
Non-aeronautical revenue growth
Acsa MD Monhla Hlahla pointed out that infrastructure investment had increased by 215% to R5.2-billion, while revenue had increased by 9% to R2.797-billion.
"Departing passenger volumes increased by 106% to R18.2-million [and] commercial and other non-aeronautical revenue increased by 20.2% to R1.4-billion," she said.
The robust growth in non-aeronautical revenue was mainly attributable to increases from activities such as property, core retail, car hire, as well as advertising.
Acsa said that it continued to experience strong growth in traffic and non-aeronautical revenues due to strong positive growth in passenger numbers against a backdrop of positive economic growth, particularly in the first nine months of the financial year.
"These results are good and reflective of the difficult operating and economic regulatory climate," Hlahla said. "We will continue to focus on being efficient and deliver excellent service to our customers."