air traffic and navigation services company

We have not collected such and are currently engaging the industry with a view to reaching an amicable solution.” Another consideration is that there were outstanding air traffic services amounts that were historical.

During the lockdown, traffic volumes were severely subdued, therefore revenue generated was very low. “ATNS charges are billed on services rendered. “As we know, the country went into lockdown at the end of March and at that time all aviation activities, except for cargo and repatriation flights, were cancelled,” said Percy. While not confirming any financial figures, ATNS admitted it had been affected negatively by the COVID-19 crisis. However, the union said it would not engage further with ATNS on any cost-saving measures, alleging that nine board directors had recently received annual increases and back pay. The situation was to be reviewed in December and it wanted Solidarity to sign an agreement to this effect. It also proposed to suspend certain employee allowances. Meanwhile, the salary bill for ATNS’s 1 300 employees for the same three months was R249m.ĭerek said ATNS had informed the trade union that it could not afford to pay salary increases this year, which would cost another R40m. According to Solidarity, ATNS negotiated payment terms with some airlines, but nevertheless its total revenue for the three months of April to June 2020 was R50m compared with R410m last year. In a letter to members on Wednesday, Solidarity’s Derek Mans reported back on a meeting on Tuesday with ATNS management, during which the company’s year-to-date financial situation was shared. This followed allegations by trade union Solidarity that ATNS had suffered an 87% revenue loss in the three months from April to June this year, mostly because of R300m in outstanding fees owed by airlines, which have been severely impacted by COVID-related travel restrictions.

He confirmed that ATNS had not yet approached Government for financial assistance. He said ATNS had reviewed its cost structure and had implemented austerity and cost containment measures to ensure it remained a going concern and maintained a firm liquidity position.

Air traffic and navigation services company