BRIEF BACKGROUND

From 1 April 2005, ATNS implemented a new tariff structure. The structure was further refined with effect 1 August 2005. The structure is based on the user-pay principle and is aimed at achieving fairness amongst all users with respect to charges levied for services rendered.

We are cognisant of the fact that the changes were substantial, and to this end, wish to better explain the process behind the implementation of the revised structure.

The previous tariff structure (up to and including end March 2005) was created prior to the ATNS’ establishment in 1993. It was devised at a time when the commercial provision of Air Navigation Services was in its infancy and relatively little information on air traffic movements in South African airspace was available. It is generally recognised that the existing tariffs have some shortcomings. Although these tariffs earn ATNS the revenues allowed under its regulatory regime, the individual tariffs do not reflect the actual financial cost of the services provided. The most pertinent shortcoming is that the larger users (i.e. heavy aircraft) cross-subsidise the smaller users. We believe that this had to be investigated and corrected.

To this end, after its periodic review of ATNS’ performance, the Regulating Committee approved the previous Permission (2004 - 2008) and subsequent the current Permission (2009 – 2013).

A more comprehensive and stand-alone account of the development and formulation of the tariff structure may be obtained from ATNS. The current tariff structure is fully detailed in the published Government Gazette.