The Airports Company SA (Acsa) property precinct at OR Tambo International Airport is part of the company’s efforts to broaden its revenue stream. The airport’s 8.5ha Western Precinct development will house offices, retailers, a hotel and conference facilities and transit-related services. It will also provide a significant boost to Acsa’s non-airline-related revenue, which includes property, retail, parking, advertising and car rental. This revenue stream, called the non-aeronautical revenue, is becoming a major driver for airport-management companies around the world, said aviation industry expert Linden Birns. The companies are making this shift because heavy regulations make it difficult for them to increase aviation-related revenue. “It’s a hedge in their business model,” said Birns. Acsa’s non-aeronautical revenue accounted for 49% (R3.3bn) of total revenue in its 2018 financial year, compared to 37% in 2017. In contrast, lower airport charges mandated by its regulator, the r...

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