Since October, Acsa - which runs SA's nine commercial airports, including OR Tambo International - has not changed the airport tariffs it charges airlines. A new tariff plan has now been submitted to the Department of Transport though details have not been made public.
Last year, Acsa said a hefty drop in tariffs (proposed by the airports regulator) would significantly decrease its cash collections, resulting in the company breaching loan covenants it had with lenders. A breach in one credit agreement would make its entire R11bn debt book immediately payable, compelling Acsa to seek a bail-out or government guarantees to make its payments.
Acsa needs higher tariffs to help it absorb the costs of airport upgrades done ahead of the 2010 World Cup.
Last month Fitch Ratings said it would maintain its negative outlook on Acsa, citing "continued uncertainty on price regulation".
Fitch justified its decision on the airport regulating committee's recommendation of a tariff decline of 42% for the year ended March 2016. The tariff proposal released by the regulator last year said the 42% decrease in tariffs would be followed by increases of 4.1% and 15.8% in the following two years, respectively. In the fourth year, it proposed a 15.9% increase, followed by 4% in year five.
"The regulating committee has not yet publicly issued a final decision. Fitch expects any changes to the pricing regime to be implemented only in the next financial year," the ratings agency said. However, the promulgation of a new tariff could still run into delays as the regulating committee's term came to an end last week.
The Department of Transport did not respond to questions about the appointment of a new committee to conclude the matter.
Acsa said that over the past year it had made several submissions to the airports regulating committee and the department.
Following comments from stakeholders, including Acsa and airlines, changes had been made to the initial draft tariffs released in May last year, chairman of the airport regulating committee Unathi Mntonintshi said last week. But he would not say if the changes were in Acsa's favour, saying the matter was "sub judice" until the minister had signed off on the tariff proposal. He said the regulator and the Department of Transport had been engaging on the matter, with comments and letters passing between the two bodies.
But Transport Minister Dipuo Peters told Business Day that she had already forwarded all her comments to the regulator. "Remember, regulators are supposed to be independent, so speak to them. I have already sent my comments to the regulator," Peters said.
Acsa has sought to downplay Fitch's negative outlook, saying it had been in place for some months. "It has had no impact on Acsa business operations as, we do not envisage raising additional capital at this stage.
"We expect this state of affairs to continue while the outlook remains in place," Acsa stated.
Source: Business Day
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