South Africa’s Airports Company (ACSA) says it received permission to reduce airport charges by a massive 35.5% from April 2017.
The company confirmed this on Wednesday saying it took permission from the independent industry Regulating Committee to drastically reduce airport prices.
The confirmation follows the announcement on Wednesday that it was reviewing the impact of such a reduction, while seeking approval from stakeholders.
According to a report from Businesstech, ACSA confirmed that its newly reduced charges will kick-start by April 1, 2017 and as it has also set out aircraft landing fees, aircraft parking fees and the passenger service charges that Airports Company South Africa can levy.
These new charges which stand at 35.5% for the 2017/18 financial year, will, however, rise by 5.8% in the 2018/19 financial year and 7.4% in the 2019/20 financial year.
Passengers will therefore be charged the following:
- Passenger service charge per departing domestic passenger: R82 (down from R127);
- Passenger service charge per departing passenger for an airport within Botswana, Lesotho, Namibia or Swaziland: R169 (down from R263); and
- Passenger service charge per departing international passenger: R223 (down from R346).
Note: All these include passenger’s prior service fees and Value-added Tax (VAT).
ACSA also noted that, aside the aforementioned changes in price, other fees like aircraft landing fees and aircraft parking fees will also be impacted, but these vary according to the maximum take-off weight of an aircraft and length of stay.
The charges will also be determined by whether the flight originated within South Africa, Namibia, Lesotho, Botswana or Swaziland or outside of South Africa, the group said.
Businesstech reported the ACSA saying that while these price changes will not affect the actual ticket pricing (which are determined by the various airlines and sellers), any reduction in the fee will mean cheaper flight costs travellers arriving and departing from South African airports in 2017.
Airport taxes are typically bolted on (and overlooked) charges attached to air tickets. While the passenger service charge is the main cost directly carried over to consumers, airlines may or may not filter any of its other duties as part of the ticket price.