Airports Company SA MD, Bongani Maseko, has called for meaningful partnerships between airlines, airports and air traffic navigation service providers in Africa.
Speaking during a panel discussion at the recent Iata AGM on how airports can provide more cost-effective infrastructure to allow airlines to grow more profitably, he challenged IATA, the Airports Council International (ACI) and the Civil Air Navigation Services Organisation (CANSO) to play a leadership role in fostering such partnerships.
Maseko said in SA the role-players (ACSA, the airlines and ATNS) have learned to work together. This after ACSA, IATA and local airlines through the Airline Association of Southern Africa (Aasa) were at loggerheads in recent years over government regulator approved airport tariff hikes aimed at funding ACSA’s R17bn airport infrastructure development and upgrades done ahead of the 2010 FIFA World Cup. After consultation, the parties agreed to review the regulatory process, funding model and legislation. “Airlines look for predictability and stability and infrastructure at the lowest cost. We have recognised the necessity to consult more effectively. We’ve learnt that we cannot leave it to the regulator. We rather find a solution than wait for the regulator to find a solution for us,” Maseko said.
However, Dubai Airport CEO, Paul Griffiths, contradicted this view, saying the most cost-effective airport model normally ends up with the lowest user charges negating the need for regulators, whose function is to fix airport models that don’t work. He said the regulatory model doesn’t incentivise airports to attract more airlines and so produce lower user charges. He said airports that are inefficient, not needed, too expensive or redundant should not be allowed to pass on their cost to airlines.
Citing the Dubai example, he said the government recognised that aviation was a key contributor to the country’s economy and encouraged capacity to enable economic growth. “Dubai aviation contributes US$22bn (R219bn) to the Dubai economy annually.” Yet user charges for landing a B777 at London Heathrow were 38% more before government taxes and 89% more after taxes compared to Dubai Airport, he pointed out.
Airports: Which model works best?
Airports: Which model works best?
14 Jun 2013 - by Hilka Birns
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