The Airports Company South Africa has turned around incredible losses to profitability due to a hefty increase in tariffs and landing fees.

The Airport Company South Africa (ACSA) reports that it has made a profit of R188 million in the year ended 31 March 2012, which is a phenomenal turnaround compared to the R221 million loss experienced in the previous financial year.

ACSA raised its rates so much that it is pricing itself out of the market. Since December 2010, there has been an increase in fees of almost 70%, and according to ACSA, it was to facilitate the construction of King Shaka International Airport and to renovate existing major airports in Johannesburg, Cape Town, Port Elizabeth and East London.

In a recent presentation to the Select Committee on Trade and International Relations, ACSA conceded that South African airports are now between the 3rd and 9th most expensive airports in the world.

Moreover Tourism Minister, Marthinus van Schalkwyk, at the Hotel and Investment Conference Africa (HICA) in May this year, queried and lamented this fact, saying“why should we (South Africa) be the third most expensive destination in the world when it comes to landing fees?” He also stated rather plainly that it was time the “unreasonable and unjustified” expensive landing fees at airports were brought under control.

South African tourism and the economy are highly important to the good of the nation and these high fees at the airports have put them at risk.