Cape Town - South Africa`s Air Traffic and Navigation Services Company (ATNS) would face rising operating costs until "the out-dated and inadequate systems have been updated and replaced to ensure safe, effective and expeditious air services", Glenn van Heerden, the chairman, said in the company`s annual report, released this week.
He said the company, which had been commercialised but was still state-owned, made a pre-tax profit of R37,4 million in the year to March 31. It had committed to capital expenditure of R162 million for a continuing upgrade programme and had achieved significant success in staff development, infrastructural improvements and business volume growth.
"The number of visitors to South Africa and the region continues to grow, which augurs well for the future of the country, the region and the company," said van Heerden.
Revenue from airlines grew by 18 percent to R190,6 million in the year to March 31. Income from training, aeronautical information services and technical assistance grew by 81 percent from a low base to R27,1 million. But operating costs were up by 28 percent to R180,3 million, a trend which would "continue for a further few years".
ATNS personnel costs had risen by 18 percent to R87,1 million, "primarily as a result of the increased number of air traffic service assistants being enrolled for training".
Co-operation with South African Development Community partners was helping to improve air safety over Africa.
The company`s Y2K committee said its systems would be ready long before 2000.