Acsa performance shows up the parastatals

This week, the Airports Company South Africa (Acsa) announced a R2-billion profit for the 2016-2017 financial year, bucking the dismal results of aviation-related stateowned enterprises.

But, with an anticipated 35% reduction in airport charges because of a tariff clawback from the years between 2011 and 2015, and with only single-digit tariff increases granted for the coming years, Acsa said its aeronautical revenues are expected to be reduced in line with the tariffs. Aeronautical revenues, earned from the regulated fees it can charge for passenger services, aircraft parking and landing fees, account for 63% of the company’s revenue.

To adapt to these changes, it has reduced its debt, particularly in bonds, from R17-billion in 2012 to R9-billion currently, reducing its gearing from 59% to 25%. It has no “big ticket” infrastructure plans that would require new debt, the company said. Current reserves and projected revenue from the tariffs will enable the company to finance a significant part of its infrastructure upgrades from its own resources, it said.

Ratings agency Moody’s flagged the financial state of SAA, one of Acsa’s major customers, as a constraint on Acsa’s credit rating.

Acsa said, although it did not normally comment on its dealings with its customers, its relationship with SAA “remains good and that concerns expressed by ratings agencies are not those of Airports Company”.

Transport economist Joachim Vermooten said Acsa is unlikely to have any reason to worry about the risk SAA posed to its business.

If anything was to happen to

SAA, other operators would quickly enter in its place, he said.

“A withdrawal of SAA’s services would fairly quickly be picked up by other services. Whatever happens, there will be other carriers.” —