ACSA tariff increase denied

ACSA, like Eskom, recently applied for a massive tarrif increase of around 132% to airport tax. This increase was required, said ACSA, due to their need to payback their large expansion and maintenance plans and to insure that they are able to give a good return to their shareholder(s).
The airlines have been up in arms about the proposed increase as they have stated, rightly so, that it would have a large negative impact of passenger numbers. Although they agree and are greatfull for the improvements and upgrades that have taken place, and are taking place, at airports around the country, there have been a few contentious issues. The main one relates to the new La Mercy airport in Durban that ACSA have insisted on building. Not only was the current airport sufficient for the next 15 years, but the original cost estimates for it have shot up to almost R7 billion. Along with this, ACSA have stated that they will not be letting other airlines buy and fly from the old Durban airport as they “don’t want the competition”.
However, for some good news, the regulating committee of ACSA has denied the application for the 132% increase. ACSA are re-applying though…so lets just wait and see what they have up their sleeve.