Flight schools resist tariff hikes as metro pushes for compliance
The metro says revenue collection is critical as Wonderboom National Airport has not undergone major maintenance in more than two decades, leaving infrastructure visibly neglected.
The Tshwane metro has drawn a line in the sand at Wonderboom National Airport as it demands full payment on overdue fees; however, most of the flight schools housed at the airport are unhappy about its revised fees, and some of them are refusing to pay the increased costs at all.
The standoff has escalated into a court battle with the city demanding full payment of outstanding fees, and a group of nine tenants refusing to pay the increased tariffs introduced in the 2021/22 financial year.
Together, these tenants owe the metro about R30-million. Another 16 tenants have complied, and are now paying in line with council resolutions.
During a pre-inspection oversight visit, the Chairperson of the Municipal Public Accounts Committee (MPAC), Councillor Godwin Ratikwane, sounded the alarm over what he described as ‘blatant disregard of council resolutions’.
The dispute dates back to 2021, when the council resolved to remove all rental discounts at the airport.
In an attempt to cushion the blow, the metro later revised its decision in the 2024/25 financial year, introducing a three-year phased reduction in discounted rates.
Despite this concession, several flight schools opted to continue paying at a self-determined 80% discount, a move Ratikwane said was indefensible.
“Most of these flight schools accommodate international students whose studies are subsidised by their home governments or institutions. There is no justification for refusing to pay the city its due,” he said.
He stressed that the issue went beyond compliance.
“This is about much-needed revenue. In a municipality where compliance is the order of the day, we cannot allow deliberate non-compliance by institutions that should know better.”
The municipality has already taken legal action to recover the outstanding amounts.
The MPAC confirmed it is monitoring an ongoing court case seeking to compel the non-compliant schools to pay and begin adhering to the current rates.
“If the current court action does not bear fruit, the committee will look into possible legal avenues to escalate enforcement,” Ratikwane explained.
The municipality has not ruled out terminating leases for persistent defaulters.
“There is an existing contractual obligation that binds the metro, but yes, terminating the contracts of non-complying schools remains an option,” he said.
The metro estimates that more than R30-million in revenue has already been lost, though the exact figure continues to climb due to ongoing non-compliance.
This revenue is critical, Ratikwane said, especially as Wonderboom Airport has not undergone major maintenance in over 20 years.
During his oversight visit, he observed visibly dilapidated infrastructure, a reflection of the metro’s financial challenges and inability to adequately fund repairs.
“It is very critical because for many years there has never been any major maintenance in the airport, and this loss contributes to the city’s inability to adequately provide maintenance,” he noted.
The Aviation Rescue Fire Services building at Wonderboom Airport stands prominently in the late morning light, flanked by parked emergency vehicles, including a white van and a red fire truck, with personnel in high-visibility gear gathered nearby amid a spacious paved lot and brick surroundings.
Rekord reached out to several flight schools to gather their opinion on the increases.
Matthew Vergers of Eagle Air said they are not happy about the tariffs. “No one is happy about the tariffs. They increased them without giving us proper notification. Everything in this airport needs to change.”
CEO of Powered Flight, Martin Jacobs, said, “We had a participatory meeting last, and they keep on ripping us off. At this point, there’s nothing we can do about it.”
Despite the challenges, the metro maintains that the airport remains a strategic asset.
According to spokesperson Lindela Mashigo, the metro has already achieved five of the 18 strategic interventions in its turnaround plan by October 2022.
These milestones include reclaiming the airport’s Category 5 licence, which had been downgraded to Category 2 in 2019, as well as a 64% growth in generated revenue between the 2020/21 financial year and the current financial period.
The airport’s financial performance has also improved, with net loss margins shrinking from -230% in 2020/21 to -69% in the current financial year.
Mashigo, however, admitted that the broader financial crisis facing the municipality is slowing progress.
“The metro’s current financial challenges hinder any immediate plans to position the airport as a domestic freight hub,” he said.
Tshwane MMC for Finance, Eugene Modise, confirmed that the metro sees Wonderboom as a future hub for domestic freight, particularly in handling high-value commodities such as platinum and manganese.
“The facility holds a distinct advantage over regional counterparts. But while there is a plan in the pipeline, financial constraints mean it cannot be implemented immediately,” said Modise.
The metro has also earmarked funding for the revitalisation of other metro-owned assets, including the Bon Accord quarry and market, as part of a broader effort to strengthen municipal revenue streams.
For now, the metro’s focus remains firmly on resolving the non-payment crisis at Wonderboom.
Ratikwane said there are no immediate incentives planned for tenants.
“At this very moment, we are focusing on the court proceedings, with the hope that the outcome will empower the city to enforce compliance.”
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