SA billionaire wants to buy some of the country’s airports

SA billionaire, Rob Hersov, has set his sights on purchasing six of South Africa’s state-owned airports. Here are the ones he wants to buy…

The impact of the COVID-19 pandemic unleashed unprecedented challenges for the aviation sector due to travel bans and border closures. This presented huge financial losses for airlines and airports across the globe.

The cost of passenger air travel in South Africa has increased by almost 50% over the last year as pent-up demand and the closure of several domestic routes have added pressure to the market.

Fewer flights, fewer passengers, and reduced revenues have ushered in dark days for many of the airports across the country, with the exception of Cape Town International Airport. Cape Town International is seeing a good recovery, with an uptick in passenger arrivals, as well as additional airlines committing to scheduled flights, according to Tourism Update.

SA AIRPORTS IN DISTRESS

Despite having some of the best airports on the continent several of South Africa’s airports are falling behind. A number of the country’s smaller or regional airports are in need of need capital injections to upgrade and improve them.

Financial issues have led to operational challenges which need to be addressed, for these key assets to continue to meet standards and maintain their certification with aviation authorities. This was the case last year when Plettenberg Bay Airport failed to comply with aviation regulations.

BILLIONAIRE REACHING FOR THE SKIES

Speaking to Business Report, South African billionaire private investor Rob Hersov said he had made an offer to take over six of the country’s regional airports in an attempt to improve these national facilities.

They include:

• George
• Gqeberha
• East London
• Bloemfontein
• Kimberley
• Upington

However, Hersov and his business partner Nick Ferguson’s informal offer has been rejected by the government.

ALSO READ: Airports South Africa launches new mobile airport App

OPPORTUNITY TO SAVE STATE-OWNED ASSETS

Hersov who is spearheading the Cape Winelands International Airport development, says he will not give up. Hersov and Ferguson now plan to bid, through their company RSA.aero, for six of South Africa’s regional airports.

The business partners see this as an opportunity to save these government-owned assets. With the skills, capital and expertise at Hersov’s disposal, he could turn the airports into sustainable enterprises and create employment opportunities for South Africans.

“Selling the regional airports to investor-operators like us who have the funds and the relevant skills is a chance to save and grow the regional airports. We are interested in buying only the six regional airports of ACSA (Airports Company South Africa). We will pay R2 billion for them and invest a significant amount going forward in upgrading and improving them.” Hersov told Business Report.

Hersov says he will offer the Department of Public Enterprises R2 billion, to buy the six state-owned assets.

By: Lorne Philpot