SECTOR WELCOMES CHARGES DROP
Acsa’s tariff cut to lower flight prices
Shareholders worry a drop in airport charges will significantly decrease Acsa’s revenue base
The South African aviation sector has welcomed an announcement by the Airports Company SA (Acsa) that airport charges would drop 35.5% from April 2017, saying they expected some of this reduction to be passed on to passengers. Acsa CEO Bongani Maseko said the announcement was in line with Acsa’s expectation. However, the company told investors on Wednesday it would put the issue of a response to its board amid calls from minority shareholders considering a legal challenge. The shareholders are worried such a drop will significantly decrease Acsa’s revenue base and could increase its risk of repaying its R11bn debt. Acsa requires higher tariffs to repay the R17bn incurred during its aggressive infrastructure drive to upgrade airports ahead of the 2010 World Cup.
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