Johannesburg changes aid airport authority's 25% commercial revenues growth

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Airports Company South Africa group executive commercial Rory Mackey tells TRW that major improvements to Johannesburg International airport's retail offer have helped grow the company's commercial revenues by 25%.

Airports Company South Africa (ACSA) has reported a 19% increase in revenue for the year to March 31 2003, with commercial revenue up 25% to R629m ($83.8m) at the company's 10 airports.  Group executive commercial Rory Mackey told TRW that core retail (duty-free, speciality, food and beverage) performed strongly, contributing R254.8m ($34m), up 22% for the year, and in particular speciality shops grew their share of revenues by 29%.

Mackey attributed a large proportion of the increase to changes made at the authority's major hub Johannesburg International airport. Marked improvements in the facility's tenant mix and the commissioning of a new duty-free mall in October 2002 helped the airport to grow retail spend per passenger by 42%, he said.

?Another project that is too young to have made a significant impact on the figures is Johannesburg's new domestic terminal,? Mackey revealed to TRW. ?We have a very strong retail offer on the landside mezzanine level and in the airside holding lounge, and I expect those changes will be evident in commercial revenues for the next quarter.?

Meanwhile, passenger numbers at ACSA's airports grew 9% to over 11m in the year to the end of March, bolstered by visitors to the cricket World Cup and the World Summit on Sustainable Development. At a press conference ACSA managing director Monhla Hlahla told local media that a new international pier at Johannesburg is in the planning stage, as is a new domestic terminal at Cape Town International airport.