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Jobs threat to SA's aviation sector
South Africa's aviation sector is facing major job cuts because of badly designed policies for aviation, tourism and related industries, according to a study by Oxford Economics.
Business Day reports that the study released by Oxford Economics says that inappropriate regulations hamper the effectiveness of vital infrastructure that will damage South Africa's prospect in aviation and tourism in the longer term.
South Africa is reviewing the regulatory framework of the aviation industry and came after the regulator was forced to grant a 161% increase in tariffs to the Airports Company of South Africa (Acsa) over a five-year period.
The aviation and tourism sectors provide jobs for 343 000 people in South Africa but the high spike in tariffs could lead to significant job losses in the years ahead as airline operators struggle to meet rising costs. Passengers are already paying about a combined total of R2,4-billion amassed through departure taxes imposed on tickets each time they fly.
Airline operators say they cannot absorb the costs of increased airport charges and would have to introduce cost saving measures, such as job cuts if the charges keep rising.
Read the full article on www.businessday.co.za.
