Acsa profits grow despite slow economy
Company optimistic in face of looming SAA cuts
AMID downgrades and turbulent economic conditions spanning many sectors, the Airports Company of South Africa (Acsa) has had “its best year ever”.
This is according to Acsa chief executive Bongani Maseko, who was speaking at the release of the company’s annual financial results in Johannesburg yesterday.
“This is the best set of results we’ve presented,” Maseko told the media and stakeholders at the event.
“We are very chuffed, as we have performed very well despite sluggish [economic] growth.”
The company reported a profit of about R2-billion in the last financial year, which ended in March.
This is an increase from the R1.9-billion profit in the previous year.
Though profits in the current financial year will likely be lower due to a reduced tariff that came into effect on April 1, Maseko is optimistic that the company would not be adversely affected by SAA’s plans to cut down on its routes.
“Obviously it will affect our [income from] landing fees,” he said.
“But believe me, if there is a gap someone will take it. We believe if there is a demand, there are more than enough carriers to respond.
“In the meantime, Acsa has big plans for upgrading some of their nine airports across the country.
“We are planning work on a runway at the Cape Town International airport, [to the value of] R3.5-billion.
Other projects include the redesign of an arrivals terminal at the Cape Town airport, as well as possible expansion at the King Shaka International airport in Durban, due to a significant increase in international traffic.
“We believe we can fund all these projects from internally generated revenue,” acting chief financial officer Dirk Kunz said.
Kunz said the company reported capital expenditure of nearly R893-million in the last financial year, though it would have wanted to spend more.
“Our financial position is very sound. We are geared well to respond to the industry’s infrastructure needs.” The company would also work towards the establishment of a solar farm at the Port Elizabeth international airport, acting regional general manager Thabo Phateng said.
“We don’t have big projects planned for the region at the moment, but R70-million [will be invested in] the solar farm project over the next two financial years.”
Maseko also hoped to expand the company’s footprint in the near future.
“We were approached to manage the Mthatha airport on behalf of the provincial government,” he said.
“We are also in discussion with several airports on the continent, and we see ourselves playing an advisory role [to them].
“Outside of the nine airports we own, we believe others could benefit from the 24 years of experience we have generated.”