Airport Downgrade May Hurt Nac Income

THE downgrading of the Hosea Kutako International Airport may have negative financial repercussions on the operations of the Namibia Airports Company.

A NAC report for 20122013 tabled in parliament last week showed that although the company recorded a profit of N$30 million, some of its main revenue streams.

The airport was downgraded by the International Civil Aviation Organisation (ICAO) last week from category eight to five, a move that resulted in the cancellation of several flights using bigger planes landing at the airport.

The report showed that the company earned just over N$20 million from retail activities during the period. The figure from the previous period was not given in the report.

The company earns N$300 000 per month from the car parking service at Hosea Kutako and about N$28 000 per month at Eros Airport.

The overall car park management for the period was N$5 million, down from N$7 million in 2012.

Non-aeronautical revenue from airports was N$43 million while N$4 million was from property development.

A further N$3 million came from retailers through other fees like concession fees.

The total aertising revenue was N$6 million while N$1,3 million came from fuel concessions.

Handling fees stood at N$2,8 million down from N$3,5 million in 2012.

Statistics for Hosea Kutako showed that 407 119 visitors arrived through the airport in 2013 compared to 385 926 in 2012.

International visitors (outside of Southern Africa) were 144 663.

In terms of departures 395 692 visitors departed from the airport compared to 386 165. Of these passengers, 134 909 were international. In terms of aircraft, arrivals at the airport were 8 477 planes of which 1831 were international. In terms of departure, 8 584 planes departed from the airport of which 1 646 were international.

Total passenger traffic recorded positive growth of 4% during the period. Total aircraft movement registered an increase of 6,7% during the period.

The report said a provision of N$70 million has been budgeted for upgrading the Walvis Bay airport passenger terminal. A further N$75 million was budgeted for a new terminal at Ondangwa airport.

Source : The Namibian