Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)Codes of Good Practice on Black Economic EmpowermentIntegrated Transport Sector CodesDomestic Aviation Sub-Sector Code for B-BBEEAnnexure A: Procurement List: Inclusions and Exclusions |
Operating Expense |
Description |
Procurement Inclusions |
Procurement Exclusions |
ADDITIONAL NOTES |
Aircraft Fixed Costs |
Lease Costs |
X |
To be excluded - International leases are the norm - difficult to enforce local leasing arrangements |
|
Spares Lease Costs |
X |
To be excluded - international leases are the norm - difficult to enforce local leasing arrangements |
||
Aircraft Finance Costs |
X |
|||
Aircraft Hire Charges |
X |
|||
Aircraft Insurance |
X |
|||
Depreciation |
X |
|||
Crew Salaries & Subsistence All |
X |
|||
Crew Positioning & Accommodation |
X |
Hotel accommodation only incurred within South Africa - no over border |
||
Crew Training Costs |
X |
Training consumables only for training incurred within South Africa |
||
Aircraft Variable Costs |
Fuel |
X |
For procurement of jet fuel in South Africa only - as oil companies comply with BEE in terms of Liquid Fuels Sub-Sector Code, include in numerator and denominator of calculation |
|
Landing Fees |
X (If landing in privately owned airports) |
X (If landing in ACSA airports) |
ACSA is a regulated monopoly and as such it is excluded as per the Codes |
|
Navigation Charges |
X |
|||
Weather Services |
X |
|||
Maintenance Materials and Repairs |
X |
Inclusion of maintenance and materials for repairs undertaking in South Africa only - inclusion in numerator and denominator as AMO'S are BEE compliant |
||
Maintenance Staff |
X |
|||
Head Office AMO |
X |
|||
Maintenance - Depreciation on capitalised assets |
X |
|||
Maintenance Engine Hire |
X |
To be excluded due to nature of aircraft operations and maintenance requirements, engines for hire have to be sourced from over border suppliers and it is not possible to include BEE considerations as part of this process which is often of an urgent nature to keep operations going. |
||
Passenger Variable Costs |
Commission Agents |
X |
||
Commission - Interline |
X |
To be excluded - interlining is dependent on passenger choices for travel and cannot be included as a BEE consideration for airlines. |
||
Commission - Credit Cards |
X |
|||
Catering |
X |
Only for locally sourced catering requirements. The guidelines provided by the dti Codes will apply with regards to imports. |
||
Airport Handling fees |
X (for ACSA airports) |
Included for ACSA airports on the basis and understanding that ACSA and their appointed Ground handlers are BEE compliant and can be included in numerator and denominator. These should be included regardless of the ACSA's and Ground handlers BEE status. |
||
Passenger Services Charges |
X |
|||
Passenger Revenue Accounting |
X |
|||
Insurance ANV & csl |
X |
|||
CRS Charges |
X |
|||
Airline Loyalty programs |
X |
|||
Station Costs |
Station Salaries |
X |
||
Station Overheads |
X |
Only in respect of consumables (i.e. day-to-day operational expenses and excludes overheads/capex) for offices in South Africa. The dti guidelines with regards to the importation of goods and services will be applicable if any of the consumables are imported. |
||
Head Office |
Salaries |
X |
||
HO Overheads |
X |
Only in respect of consumables (i.e. day-to-day operational expenses and excludes overheads/capex) for Head Office operations in South Africa. The principle discussed above with regards to station overheads will be applicable. |
||
Finance Charges - Net |
X |
|||
Franchise Fees |
X |
To be excluded as this is a global strategy determined by the airline, which could involve a franchise with an international airline or a local airline. Airlines cannot be judged on a BEE basis for franchise arrangements. |
||
Marketing expenses |
X |
Only in respect of local marketing spend. Excluded for foreign owned airlines where marketing decisions are linked to global contracts. |
||
Diversions |
X |
Only in respect of accommodation and meal arrangements and expenses incurred for passengers in S.A. Excluded for foreign owned airlines where marketing decisions are linked to global contracts. |
||
Loss on sale of assets (profit) |
X |
|||
Depreciation |
X |
NB. This procurement list is subject to annual review.