Briefing Parliament’s Portfolio Committee on Transport, the Airports Company of SA (ACSA) painted a gloomy picture with expenditure having to be capped as a result of the ongoing coronavirus pandemic.
In a statement post the briefing ACSA said it is “revising its corporate plan in line with scenarios setting out potential impacts of COVID-19 and travel restrictions on traffic volumes and thus on financial performance and position”.
“In the company’s ‘New Normal’ scenario, which is its worst-case one, it anticipates the impact on traffic volume demand and airline sustainability will be long term. Under this scenario, traffic volume is estimated to decline by up to 50% in 2020/21, an unprecedented impact on the global aviation sector.
“The ‘New Normal’ scenario includes significant responses introduced by management to mitigate the impact of the anticipated decline in traffic volume. These include reductions to operational expenditure and limitations on capital expenditure.
“Previously planned capital expenditure of R17.9 billion over the next three years will be capped at R1 billion a year. Reports that the reduction is from R41 billion to R5.8 billion are incorrect.
“The result of this scenario leads to a funding requirement over five to six years of up to R11 billion. Of this amount, government support up to R -billion may be required in the next three years.
“It is important to note the financial position of the company was solid prior to COVID-19. The company had no intention of seeking government support. The company emphasised the support will be in the form of guarantees and not bailouts,” according to the ACSA statemen