OUR STRATEGY

Context

Following the declaration of the State of Disaster in response to the COVID-19 pandemic in March 2020, we initiated a comprehensive review process of our Strategy 2025.

The resulting Recover and Sustain Strategy and revised Financial Plan provided the necessary framework for us to manage the Group through the early, acute phase of the pandemic and, after the roll-out of the national vaccination programme, in the initial stages of recovery. This integrated framework enabled us to undertake stringent measures to manage working capital and to limit both operational and capital expenditure as well as to define a way forward over three timeframes from 2021 to 2030.

Despite the unprecedented situation, the strategy nevertheless remained centred around our three core pillars: Run Airports, Develop Airports and Grow Footprint. These define our reason for being as an organisation and give expression to our key areas of strategic focus.

Our strategy at a glance

Initiatives during the reporting period

We have been actively refining our strategy to focus on growth and sustainability, and our new Growth Strategy was finalised during the reporting period. We also reviewed our Corporate Plan and the latest version of the plan was approved by the Board on 27 February 2023.

The Growth Strategy builds on the Recover and Sustain Strategy, which continues to serve as a roadmap for our recovery from the impact of the pandemic as well as a framework within which to grow and develop our business, ensuring long-term sustainability and success.

In addition, we continue to implement ACSA’s Global Strategy, developed in the previous period, in order to enhance South Africa’s trade and tourism. The strategy provides for improvements to the air transportation network as well as infrastructure upgrades to our airports in order to enhance productivity and enrich the passenger experience. In particular, we are pursuing opportunities throughout Africa with the aim of fostering regional integration and maximising the African Open Skies initiative for the Group.

These macro strategies are complemented by detailed strategies and models focused on organisational design and capacity development. They include the revised Capability Model, Governance Framework and Operating Model, People and Culture Strategy, ICT strategy, Innovation Strategy and Stakeholder Management Strategy. Together, they are empowering us to navigate our post-pandemic recovery and drive future growth.

To engage and serve our customers better, we have also developed a Passenger Experience and Mobilisation Strategy. This is designed to attract and connect with smaller and township communities and to make air travel more accessible and affordable for them.

We have further recognised the resilience of cargo operations, especially in times of crisis, and have adopted a new Cargo Strategy aligned to our overall mandate, especially to take advantage of developments in e-commerce.

In our pursuit of non-aeronautical revenue, we continue to work within the framework of our Aerotropolis Strategy. This provides for the development of three aerotropolis installations and six smart airport cities, which will stimulate infrastructure and property development and foster economic growth for areas and communities around our airports. Supported by our Innovation Strategy, the Aerotropolis Strategy positions the Group for sustainable growth and future competitiveness.

During the reporting period, we also reviewed and updated our Ground Handling Strategy and Fuel Strategy to align with external developments and to remain consistent with ACSA’s mandate as outlined in the Airports Group Act. These strategies, together with the Aerotropolis Strategy, aim to facilitate a recovery in passenger numbers and significant growth in export activities across various industries.

Throughout the formulation of these strategies, models, and plans, we have engaged extensively with key stakeholders and partners, including local communities. This collaboration is vital for successful implementation and it ensures that our SocioEconomic Development and Transformation Strategy addresses important socio-economic imbalances in the communities within the Group operates.

Going forward

In the 2023/24 financial year, we will continue to actively review our strategic direction in order to respond effectively to changing market and operational conditions. Our goal is to seize new opportunities that arise. As part of this process, we are currently evaluating our Commercial Strategy to enhance our ability to create, harness and deliver value to our key partners and customers.

A specific area of focus is the repositioning of our Training Academy with the aim of establishing it as a leading and preferred provider of aviation training. Through strategic partnerships, collaborations, acquisitions and amalgamations, our objective is to offer access to a single, integrated aviation academy. This will, in turn, enable us to provide comprehensive and high-quality training services to meet the evolving needs of the industry.

To improve accessibility and inclusivity, we are also developing a robust marketing and communications strategy specifically targeting passengers from historically disadvantaged and marginalised communities. The aim of this is to facilitate access to airport infrastructure and air travel by diversifying our service offerings extensively and integrating with various transportation modes. By doing so, we aim to enhance airport utilisation and create a more inclusive travel experience for all.

As we embark on these strategic initiatives, we remain dedicated to maximising value for our stakeholders, adapting to market dynamics and delivering exceptional service to our customers. We look forward to embracing the opportunities that lie ahead and to having a positive impact on the aviation industry.