NATIONAL ASSEMBLY
FOR WRITTEN REPLY
QUESTION NO 1596
DATE REPLY SUBMITTED: WEDNESDAY, 07 SEPTEMBER 2011
DATE OF PUBLICATION IN INTERNAL QUESTION PAPER: FRIDAY, 17 JUNE 2011
(INTERNAL QUESTION PAPER: NO 17 â 2011)
Mr S B Farrow (DA) asked the Minister of Transport:
(1) (a) On what dates were the service fees of the (i) Air Traffic and
Navigation Services Company Limited (ATNS) and (ii) the Airports
Company of SA (ACSA) last increased and (b) in each case, (i) by what
percentage were they increased, (ii) what was the fee (aa) before and
(bb) after the increase and (iii) how was each specified increase
calculated;
(2) whether any research has been conducted on the impact that the fee
increase at each institution would have on the industry; if not, why
not; if so, in each case, what (a) were the (i) findings and (ii)
recommendations of the research and (b) are the further relevant
details? NW1798E
REPLY:
The Minister of Transport:
(1) (a) (i) and (ii) and (b) (i), (ii) (aa) and (bb) and (iii)
Air Traffic and Navigation Services Company Limited (ATNS)
The ATNS received a tariff increase in March 2010 through the
permission by the Regulating Committee: Airports Company of South
Africa and ATNS.
The permission provides tariff increases for a five-year period and
increases were as follows:
⢠Financial year 2010/11: 35.8%
⢠Financial year 2011/12: 6.6%
⢠Financial year 2012/13: 5.7%
⢠Financial year 2013/14: 5.5%
⢠Financial year 2014/15: 5.6%
Fees have different cost components (variable, business sustainability
and fixed costs) and mass categories. For instance, a plane with a
mass category >15 000 kg would have paid R4,972.34 before the increase
and R6,693.98 after the increase in the 2010/11 financial year.
Airports Company South Africa Limited (ACSA)
The last increase for passenger service charges was on 01 April 2010.
The increase at the time was as per the schedule below:
Passenger service charges Before Increase After
Domestic R42.98 32.7% R57.02
Regional R89.47 31.4% R117.54
International R118.42 31.1% R155.26
Increases are calculated on a price cap formula as published within
permission by the Regulating Committee. The price cap formula
determines a maximum charges level in any particular year to provide a
commercial return on capital employed.
(2) (a) (i) and (ii) and (b)
ATNS
A research and a consultation process are done before the increases
are granted by the Regulating Committee. Inflation, affordability and
the impact are all considered in that process. Reputable research
institutions like the Bureau for Economic Research (BER) are used for
economic outlook indicators.
ACSA
Following ACSAâs permission application in 2009, the Regulating
Committee commissioned an independent study to provide insight into
the potential impact of ACSAâs proposed tariff increases on traffic
volume. No written feedback has been received. However, verbally the
consultants have indicated that even a 133% tariff increase for 2011
would have had a potential negative impact of 5% on traffic volume
growth for domestic traffic volume only. It would have had no impact
on regional or international traffic volumes.