South Africa to boost non-aeronautical revenue through property sale

Airports Company South Africa (ACSA) is to unlock a number of non-aviation property assets in a bid to boost non-aeronautical revenue after reporting largely similar results two years in a row, according to Global Airport Cities.
Time Aerospace thumbnail

While the total revenue generated by the company has increased steadily year-on-year from R3.2bn (US$354m) in 2008/09 to R6.7bn ($651m) in 2012/13, the percentage of non-aeronautical revenue has decreased from 54 percent to 36 percent, the online report said.

The company generated $236m revenue from non-aeronautical income in the past year, a similar figure to the year before. ACSA advised that this year’s balance tip towards aeronautical from non-aeronautical was a result of direct action to increase aeronautical revenue, but added that it would be taking action to boost non-aeronautical income over the coming year, recognising its potential in a year that saw “disappointing” domestic passenger figures.

In its annual report released last week the company advised: “Airports Company South Africa will continue with its efforts to enhance the Group’s income from non-aeronautical revenue.The organisation’s valuable, non-aviation related property assets will be unlocked through a new property development strategy.”

Johannesburg's airport is the jewel in the crown of South Africa's airport and contributed significantly to non-aeronautical revenues through its property portfolio.
 

Related content