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DA calls for privatisation of smaller airports

20 Nov 2013

Small state-owned airports should be privatised‚ Democratic Alliance (DA) transport spokesman Ian Ollis insisted on Tuesday (19 November).

Municipalities accused of over-charging for jet fuel at private airports. Image: Tshwane Council

He said that he intended write to Transport Minister Dipuo Peters to call for the privatisation of small municipal-owned airports where this was feasible. This would introduce greater competition and better efficiencies in the operation of the small airports‚ by making them more market-driven.

Ollis said the huge costs related to the use of small state-owned municipal airports was making them inaccessible to low-cost airlines. This deprived commuters of the opportunity to move around the country easily and cheaply.

"The DA has learned that the last available Jet A1 fuel price at Wonderboom Airport, which is owned by the City of Tshwane, was R14.91 a litre‚ almost 40% more than the price of Jet A1 fuel at OR Tambo where it cost R10.87‚" Ollis said.

"This appears to be as result of a monopoly on supply of Jet A1 fuel by a single company appointed by the Tshwane council. Jet A1 fuel at Rand Airport‚ where the Ekurhuleni Metro Council has a significant ownership stake‚ is charged at R15.25 a litrem" he added.

Ollis said the Airports Company of SA (Acsa) told members of Parliament's transport portfolio committee during an oversight visit in September that its airports were not suited for low-cost airlines and that such airlines should rather make use of smaller non-Acsa airports to remain financially viable.

"Exorbitant fuel prices at smaller airports‚ as a result of state appointed monopolies‚ are preventing progress in this regard‚" Ollis said.

"Private sector competition‚ through multiple fuel suppliers for instance‚ will be a welcome first-step towards opening up new destinations for domestic travel at affordable prices. The DA believes that everyone in SA should be able to travel freely and at the lowest possible fares. Increasing accessibility at more city and regional airports for viable and sustainable low-cost airline operations will allow people to do that," he said.

Source: I-Net Bridge

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