Airports Company South Africa was formed in 1993 as a public company under the Airports Act (No. 44 of 1993) and, although majority owned by the South African Government, is legally and financially autonomous and operates under commercial law.
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About
Over the years, the company has transformed a fragmented, infrastructural parastatal into a focused, customer driven, efficient and commercially successful business, whose airports have become critical success factors to Brand South Africa. The company currently manages a network of nine airports in South Africa, including the three main international gateways of O.R. Tambo International, Cape Town International and King Shaka International Airports. In 2013, the nine airports facilitated nearly 39.5 million passengers.
Airports Company South Africa has two distinct revenue streams, which have generated similar income for the past few years. One source is defined as aeronautical income and is derived from regulated charges or tariffs. These consist of aircraft landing and parking charges, and passenger service charges. The non-aeronautical income is generated from commercial undertakings and flows from retail operations, car parking, car rental concessions, advertising, property leases and hotel operations.
Another component of non-aeronautical revenue is generated by international operations. Airports Company South Africa formed part of a consortium that took over the expansion and management of Chhatrapati Shivaji International Airport in Mumbai, India. The success of the venture in India encouraged the Company’s Commercial Services division to seek similar opportunities elsewhere. Such undertakings allow the leveraging of the pool of skills and experience that the Company has amassed over the years to grow the business and increase shareholder value.
Airports Company South Africa, in partnership with the Brazilian company, Invepar, was successful in a bid to manage the development, maintenance and operations of Guarulhos International Airport in São Paulo, Brazil, the busiest international airport in Latin America. The consortium with Invepar will own 51 percent of the airport concession, with 49 percent being held by Infraero, the current airport operator. Airports Company South Africa owns ten percent of the consortium with Invepar.
The massive expansion and upgrade of infrastructure completed in mid-2010 has provided Airports Company South Africa with a network of airports that is the envy of the international airports community. To gain maximum benefit from these exceptional airports, continued focus has been directed at service quality, with considerable on-going success. The nine airports are registered on the largest worldwide airport service quality (ASQ) programme, under the auspices of Airports Council International, which represents 98 percent of the world’s airports.
The nine airports owned by the Company are major generators of direct and indirect employment and business opportunities, providing the core of development nodes. The concept of the ‘aerotropolis’, whereby a range of manufacturing, logistics and commercial facilities, complemented by hotels, retail outlets, entertainment complexes and offices are clustered around an airport is likely to further accelerate the core role of airports. This is particularly true for King Shaka International Airport and its associated Dube Trade Port and the drive for an aerotropolis surrounding O.R. Tambo International, which is directed by Ekurhuleni Metropolitan Municipality.
Airports Company South Africa will continue to play its role as a key driver of South Africa’s economy by demonstrating socioeconomic and environmental responsibility through its activities and programmes.