http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.23Change: -0.03
R/$ = 10.61Change: -0.05
Au 1299.74 $/ozChange: 2.18
Pt 1479.50 $/ozChange: 0.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Aug 20, 2009

Acsa sees steep passenger traffic decline, results ‘solid’

Back
Acsa MD Monhla Hlahla talks about the group's future plans (Videographer: Nicholas Boyd; Editing: Shane Williams).
Natal|Africa|PROJECT|Projects|Africa|India|Russia|South Africa|Contracting|Gross Domestic Product|Retail Businesses|Retail Operations|Transport|Acsa|Franklin Sonn|Jeremy Cronin|Monhla Hlahla|Priscillah Mabelane|FIFA World Cup
|Africa|PROJECT|Projects|Africa||Contracting|Transport||
natal|africa-company|project|projects|africa|india|russia|south-africa|contracting|gross-domestic-product|retail-businesses|retail-operations|transport-industry-term|acsa|franklin-sonn|jeremy-cronin|monhla-hlahla|priscillah-mabelane|fifa-world-cup
© Reuse this



Airports Company South Africa (Acsa) released a “solid set” of financial results, despite the turbulent and contracting economic environment, Transport Deputy Minister Jeremy Cronin said on Thursday.

The company’s net earnings dropped by 43,7% to R444-million for the year ended March 31, 2009, compared with net earnings of R789-million the year before.

Acsa MD Monhla Hlahla highlighted that the group had seen a steep decline of 7,7% in departing passenger traffic during the year. This decline represented 2,8-million passengers.

She said that traffic volumes were driven by gross domestic product (GDP) growth and that a 1% increase in GDP led to a 2,5% increase in passenger traffic.

The decline had brought passenger traffic down to the levels seen in 2007, with domestic passenger traffic, which was down 10,5%, being the main contributor, noted Acsa financial director Priscillah Mabelane.

Mabelane added that aircraft landing volumes had also declined by 3,8% during the year.

The company was expecting lower passenger and aircraft landing volumes to continue throughout the 2010 financial year.

Nevertheless, the group’s revenues increased by 13% to R3,2-billion for the year, compared with R2,8-billion the year before, as nonaeronautical revenues rose 20% to R1,7-billion, up from R1,4-billion the year before.

Mabelane noted that some of the company’s nonaeronautical businesses, such as its core retail businesses, were exposed to the passenger volumes. Despite this, the core retail operations had seen a 29% increase in revenues.

Another significant contributor to the nonaeronautical revenues was property, which increased its revenues by 28% in the year.

In light of the downturn, the company had tried to identify the most appropriate property portfolios to manage and would continue to grow this section of its business, said Mabelane.

Aeronautical revenues, meanwhile, increased by 6% to R1,45-billion for the year, compared with R1,37-billion the year before, mainly as a result of an 11% increase in tariffs, which was awarded to Acsa in 2008.

Acsa hoped to have finalised its permission application for tariff increases for the period from April 1, 2010, to March 31, 2015, and submit this to the Economic Regulator by the end of August, said Hlahla.

She declined, however, to say how much of a tariff increase the group would seek, saying only that Acsa was still completing its tariff models.

Meanwhile, Hlahla was confident that the company would be able to complete all the airport infrastructural projects and capacity expansions for the 2010 FIFA World Cup in time.

The new airport being built at La Mercy, in KwaZulu-Natal, would open on May 2, 2010, said Hlahla.

Acsa had spent just under R2,4-billion in capital expenditure on the R6,8-billion project in the 2009 financial year.

Going forward, the company would continue to refine its long-term business plans, review its operating structure to enhance efficiencies, continue to improve its asset utilisation and complete a strategy to grow its traffic volumes.

Acsa chairperson Franklin Sonn, meanwhile, noted that the group was gearing all its efforts to ensure that passengers received good service in South Africa.

He added that the group was also attracting attention abroad.

It had already been involved in a consortium that was managing the Mumbai airport, in India. Sonn said that Acsa had received invitations from Russia and a number of African countries to build and manage airports for them.

Hlahla, however, said that the group would not pursue this aggressively, but would rather look at these on a case-by-case basis and in relation to what is required from the group in South Africa.

Its balance sheet was currently focused on South Africa and it would only potentially look at such opportunities in the next three to four years, she said.

Edited by: Mariaan Webb
© Reuse this Comment Guidelines
 
 
 
 
 
 
 
 
Other Aviation News
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
The Kenyan government will in October host the Africa Sustainable Transport Forum, funded by, among other parties, the United Nations and the World Bank. The aim of the conference is to develop an action plan for sustainable transport in Africa, says World Bank...
A locally designed and built aircraft has entered ground-testing phase at the Wonderboom Airport, in Pretoria, marking a significant milestone for South Africa-based defence solutions business Paramount Group.
More
 
 
Latest News
The Medupi power station project
Electricity producer Eskom has, for the first time, offered a detailed timeline for the synchronisation of Medupi Unit 6, which is officially scheduled for December 15, 2014. Addressing a joint meeting of the Portfolio Committees on Public Enterprises and Energy on...
As South Africa had largely exhausted the use of traditional mechanisms to stimulate the fiscus, government now needed to swing its focus to dealing with the internal structural issues that had, thus far, prevented the country from unlocking its true economic value,...
The Western Cape High Court will on Monday hear a Sanral application for information about the proposed N1/N2 Winelands Toll Highway Project to be kept secret, the City of Cape Town said. The application would be heard behind closed doors, mayoral committee member...
More
 
 
Recent Research Reports
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
Real Economy Insight: Steel 2014 (PDF Report)
This four-page brief covers key developments in the steel industry over the past 12 months. It provides an overview of the global and South African steel and stainless steel markets, South Africa’s major steel producers and events that have shaped these markets.
 
 
 
 
 
This Week's Magazine
Multinational semiconductor chipmaker corporation Intel announced its national campaign to further acquire partners to drive its She Will Connect programme, an initiative that aims to expand digital literacy skills to young women in developing countries, further into...
South Africa's MeerKAT radio telescope array programme should get back on schedule within a few months. This assurance has been given by SKA South Africa (SKA SA) associate director: science and technology Prof Justin Jonas. Early last month, Science and Technology...
The Passenger Rail Agency of South Africa’s (PRASA’s) Metrorail service will remain a subsidised service following its current multibillion-rand rolling stock, station, depot and signalling upgrade programme. PRASA group CEO Lucky Montana has allayed fears that...
GARYN RAPSON Contaminated Land Provisions in the National Environmental Management: Waste Act No 59 of 2008 will open the door for court battles to determine who will be held liable for the remediation
The uncertainties around the remediation of affected areas as addressed in the Contaminated Land Provisions in the National Environmental Management: Waste Act No 59 of 2008 will possibly spark litigation and disputes between landowners and businesses, contractors...
South Africa is currently the largest component of the African Development Bank’s (AfDB’s) active portfolio in Southern Africa, comprising 62.5% of the bank’s $7.9-billion exposure to the 12-country region – the second largest beneficiary is Mauritius, which...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks