Acsa to increase tariffs by 6,5%

It will also lift tariffs in line with inflation for the remaining two years of the five-year business cycle.

In the financial year to 31 March 2012 the company, which owns SA's major airport properties, reported a net profit of R188m. This was an improvement on the previous financial year, when it recorded a loss of R221m due to the dispute over airport tariffs when it was struggling to gain approval from the government-mandated Acsa regulating committee

The company generated revenue of R5,74bn, which was 23% up from the previous period.

In the past year alone Acsa was obligated to pay R2bn in financing costs against a R16bn debt on its recent major recapitalisation programme. In addition, in the period it has had to push back its capital expansion plans.

Acting MD Bongani Maseko says Acsa has not changed its long-term strategic plans but has slowed the pace of its long-term investments.

"The recent R16bn upgrades have provided all Acsa airports with additional capacity to meet the short-term forecasted demand," Maseko says. "With that said we have reviewed our future infrastructure requirements and decided to continue with the postponement of major new capacity infrastructure developments."

He says this decision was taken primarily because of the world economic downturn and the concomitant revision of passenger growth expectations.

A development cycle of 5-6 years is required for major infrastructure developments. Maseko says the company's ongoing planning process will enable it to respond to any changes in market conditions.

The next major infrastructure development projects will be at OR Tambo International Airport and a new runway at Cape Town International Airport

However Maseko was reluctant to give details on the timing or cost of these projects. He says the company's debt is all being paid on time and that it is in a strong position, with R2bn in cash on hand.

Source: Financial Mail via I-Net Bridge