Wonderboom airport finances under scrutiny

Wonderboom Airport’s financial performance took centre stage at the Municipal Public Accounts Committee (MPAC) meeting on February 7.

The meeting was part of the committee’s ongoing mandate to ensure that municipal entities, including the airport, operate transparently and efficiently, while also addressing their financial struggles.

Despite some revenue growth, the airport’s debt and expenses continue to be a concern for the metro.

The airport has seen a notable increase in revenue over the last few years.

According to reports presented at the meeting, airport income rose from R25.4-million to almost R52-million between 2020/21 and 2023/24.

Tshwane’s Godwin Ratikwane, who chaired the meeting, acknowledged this growth as a promising development and said the airport has the potential to generate substantial revenue for the metro.

ALSO READ: Tshwane App in the works to improve service delivery

The airport however continues to struggle with an growing debtors’ book.

This debt, combined with the inability to meet collection targets, is putting it under financial strain.

The committee noted that the annual revenue collection target of R27-million fell short, leading to concerns about the sustainability of the airport’s operations.

Ratikwane said while revenue growth is encouraging, the airport’s expenditure is outpacing its income.

The accounts committee raised alarm over the fact that the airport’s annual expenditure exceeds R33-million, higher than collected revenue.

“The growing gap between revenue and expenditure is unsustainable and could hinder the airport’s ability to remain operational in the long term.”

He said the imbalance between revenue and expenses highlights the need for urgent intervention to bring the airport’s finances under control.

The committee instructed the officials responsible for the airport to develop a more profitable business plan.

“An overhaul is needed to ensure the airport can generate consistent profits and operate more efficiently.

“We have issued a clear directive for the airport officials to present a new, viable business plan before the end of the 2024/25 financial year.”

The committee highlighted the importance of this plan in turning the airport’s fortunes around, urging officials to explore all options to reduce costs and increase revenue streams.

One of the recommendations was to investigate alternative sources of income and potential partnerships that could help alleviate the financial burden currently facing the airport.

In the coming months, the airport’s future will depend in its ability to balance revenue growth and cost containment and implement the necessary and implement necessary changes to improve its financial performance.

Speaker Mncedi Ndzwanana said the review aims to align the plan to international best practices and prevailing market conditions and trends.

“The review aims to incorporate new environmental requirements associated with the airport operations and development.

“Provide adequate responses to prevailing changes in the aviation industry pertaining to technology, air traffic navigation, aircraft performance and fleet evolution, as well as commercial demands and strategies,” said Ndzwanana.

He said the review will also integrate the non-aeronautical commercial objectives and social utility of the airport.

“It will also align the airport’s envisaged development to the metro’s spatial development framework and land use management policies.”

ALSO READ: North councillor urges residents to report service delivery issues

Do you have more information about the story?

Please send us an email to bennittb@rekord.co.za or phone us on 083 625 4114.

For free breaking and community news, visit Rekord’s websites: Rekord East

For more news and interesting articles, like Rekord on Facebook, follow us on Twitter or Instagram or TikTok.