The letter by the chief financial officer of Comair, Yasas Sri-Chandanas, "Acsa funding crisis a threat to air travel", (Business Report, December 7) refers.
Let me start by pointing out that if the Independent Economic Regulator allows us to levy the proposed tariff increase of 132.9 percent for the 2010/11 financial year, Airports Company SA (Acsa) will be able to reward its investors adequately. The increase from R42 to R99 on a single domestic trip, in view of R17 billion in extra infrastructure provided by March, is affordable.
The comment by Sri-Chandanas shows a remarkable lack of understanding of Acsa's financial structure and the industry's regulatory regime. It is a deliberate obfuscation of the issues at hand. Acsa does not face a funding shortfall. We have a good credit rating and successfully raised all the funding for the capital investment programme in a tough economic climate and at favourable rates and terms.
Our tariff application is based upon the principle of return on investment (ROI). Acsa's Independent Economic Regulator determined what the ROI should be and we accordingly submitted our application.
Acsa embarked on a capital investment programme in 2006, following consultations with the airlines on future requirements. In view of the global financial crisis, Acsa made a prudent decision to cut expenditure from R22bn to R17bn by deferring and rationalising some projects.
Sri-Chandanas's comments are yet another attempt to deflect attention from the fact that airlines deceive passengers into believing "airport taxes" accrue to Acsa only. In reality, the airlines get the lion's share of the "airport taxes".
The view that Acsa is anti-competitive is rich coming from Comair, which does not allow competition at Lanseria airport as it wants to recover its investment. For the record, we are not afraid of competition.
It may be convenient for certain passengers to use Lanseria, but the fares are generally not different from OR Tambo International, where there is better connectivity to other destinations and quality facilities. We have analysed kulula.com's pricing and noted that its pricing for the Durban route ranges from R399 to R949. It is interesting that Sri-Chandanas quotes R300 as an average low-cost fare.
Surely, with airlines charging in excess of R600 in fuel levies in some instances, Comair cannot claim that an extra R57 in service charges will cause a mad panic.
Priscillah Mabelane
Executive Director of Finance, Acsa
If Kelvin Kemm ("Scientific evidence of global warming blows hot and cold", Business Report, December 8) wants a smoking gun that proves human-induced emissions of greenhouse gas cause global warming, he clearly does not understand basic climatology. As with any other scientific field, the science behind global warming is by no means complete. Data is continuously collected while theories are refined and tested. But until someone gives a feasible alternative, the proposition that our carbon emissions are a key driver of global warming stands - and we ignore it at our peril.
None of the anomalies that Kemm raises are new. The Medieval Warm Period and the Maunder Minimum were taken seriously by climate scientists and do not contradict the human-induced theory. The famous hockey stick graph used by Al Gore has not been discredited. In fact it has been refined and it still looks like a hockey stick!
The sunspot theory has floated about for years, but was not taken seriously due to numerous flaws. The recent publication of e-mails between a few colleagues at the University of East Anglia's climate research unit is unlikely to upset the theory.
The problem is that Kemm wants us to believe there is a gigantic global cover-up of "the truth" behind global warming, in which 95 percent of climate scientists are complicit, and with the collusion of almost every government in the world. What exactly is the point of this massive conspiracy? What do climate scientists have to gain? Why should governments want to restrict their own economic growth?
As evidence of this great conspiracy, Kemm offers us soundbites from an Australian politician, a B-grade movie star and an NGO campaigner. Apparently these evil conspirators want to put the brakes on Africa's development. Sadly we may not need their help. A 2186C increase in global temperature will probably do it for us.
Stephen Law
Director, The Environmental Monitoring Group
Kelvin Kemm's article in the Business Report of December 8 is like the last barking of the climate denialists. Copenhagen is on the move and nothing can stop it.
Does he think that over 100 world leaders would waste their time going to a meeting the premise of which is faulty? Does he believe editors of 56 leading newspapers are fools and were all duped into running the same message of support and hope for good targets and positive outcomes?
There is consensus at the highest levels of science and political leadership that anthropogenic warming of the Earth's atmosphere is a threat to the continued quality of life. And yet the bleating goes on.
It will be interesting to see who paid the hackers behind the well-timed Climategate saga. At the moment, fingers are pointing at the Russian oil industry. Of course, the fossil fuel industry has paid many many millions for a massive campaign to undermine the vast scientific basis supporting the evidence of global warming.
Thankfully, Kemm and fellow denialists are being swept away by the good sense of humanity and it couldn't be sooner. They will be looked upon by future generations as yapping dogs paid to bark while the caravan of better human endeavour moved on. They will be judged very harshly by history.
Hugh Tyrell
Via E-mail
The time is absolutely right for both union and business leadership to call for a mindset change. This is a radical departure from the norm, and an indication that unions will support a 50 percent wage cut as part of a programme is fantastic news.
Economic Development Minister Ebrahim Patel has rolled out the new training lay-off scheme. Although the scheme is still in its infancy, it is being used to benefit both employees and companies.
This scheme is described as South Africa's response to the international economic crisis. The key principle is to ensure all activities are aimed at growing the economy and creating jobs. The government will ensure that staff who are about to be retrenched are given a chance to embark on a three-month training scheme and earn half their salary while training.
The employer will be relieved of the full salary payment and the employee will gain some time and further skills. The idea is to ensure that employees are upskilled and possibly kept on at the same firm.
This innovative new deal, if managed correctly, could not only be ground-breaking worldwide, but would certainly be a major benefit to recipients of training.
As an adviser on retrenching staff, I have advised companies to use the scheme and the feedback has been extremely positive from both employers and employees.
Once again, South Africa has found an innovative solution to a global problem, and we need to ensure that its implementation is not tardy or bogged down by administration. The Commission for Conciliation, Mediation and Arbitration is aware that the scheme needs to be flexible.
Unions and management need to recognise that the government has rolled out the scheme as a gift to the social partners. Grab this gift with both hands.
Michael Bagraim
Cape Town
South Africa's apparel industry may have unravelled in some quarters with consequential job losses ("Clothing industry job losses continue", November 30). The fact that more than 9 percent of this year's fashion design graduates from Durban's Linea Academy found employment in various stations of the apparel value chain indicates that the industry is still stitching. We need to focus on these positive stories.
Renato Palmi
Via E-mail
I think the whole country should congratulate African Dawn Capital (Afdawn), which ordered "booted executives to return their bonuses" (Business Report, December 2). With all Eskom's financial problems, it is surprising the utility does not demand the return of bonuses from booted directors. That goes for Bonitas, too.
Talk about corruption is getting annoying as there is no action. All those suspected of stealing or misusing cash should be required to return it. It is not enough to talk about booting out corruption while nothing happens to those accused of it.
R Tuelo Leteane
Mafikeng
I take exception to Ann Crotty's article in Business Report of December 2 concerning Ireland. Although many of her comments are valid, the suggestion that Irish people voted in favour of the Lisbon Treaty to escape being ruled by the Irish has no basis and neither has her comment that a referendum is needed to change the "corrupt" system of government. Not much understanding or research there.
Her comment that after 90 years of independence the Irish cannot seem to govern themselves is patronising and insulting.
Yes, Ireland has its problems. Christianity has done immeasurable harm and our present batch of politicians are self-serving and incompetent. But our youth are rejecting that primitive superstition and our political leaders can be booted out at the next election. Can yours?
Ireland is a small country with limited natural assets; South Africa is a massive country with almost unlimited resources. Yet Ireland's gross domestic product per person is four times bigger. It has one of the most highly educated workforces in the world and citizens can walk the streets of its cities at night without fear.
We may have problems, but we can overcome them. We do not need this kind of patronising comment.
Crotty is entitled to give her opinion and to criticise where appropriate. But ignorant prejudice is another matter.
Joe Riordhan
Witbank