kulula warns of excessive airport charges
Tags :
Africa,
kulula
(CAPA) kulula issued a warning on 17-Jul-07 that the future growth of air travel in South Africa would be significantly impacted by the excessive increases in airport charges in the country.
Airports Company of South Africa (ACSA) recently submitted proposals to spend over USD2.9 billion to upgrade airports in the country, a cost that kulula believes is in excess of what is required. ACSA is one of the most profitable companies in South Africa with a net return on turnover of over 40%.
Joint CEO of kulula’s parent, Comair Limited, Erik Venter, commented “We have worked hard over the past six years to get more South Africans travelling by air and in that time the market has doubled in size. Our customers are now faced with escalating airport charges that will make flying considerably less affordable.”
In Durban, ACSA plans to construct a new airport at a projected cost of USD1 billion instead of the much more affordable option of upgrading the existing airport for only USD144 million.
There are trends around the world to construct much more cost effective airports to facilitate the affordable growth of air travel. In Malaysia, a special low cost terminal was constructed at the country’s main airport in Kuala Lumpur at a fraction of the cost of the main terminal.
A year ago kulula commenced operations from Lanseria Airport, North of Johannesburg, which has had an excellent take up and is more affordable and less congested than OR Tambo International Airport.
Date posted: 18-Jul-07
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kulula warns of excessive airport charges 
