Cargo airlines express concern over March handling changeover

AS EQUITY Aviation lost its court battle to reverse the decision by Airports Company SA (Acsa) to terminate its ramp and baggage handling licence at all Acsa airports at the end of this month, cargo airlines are keeping a close eye on developments. While the major focus has fallen on baggage handling and related security concerns, this represents a minuscule segment of the ramp handling licence, says Air Cargo Operators’ Committee (Acoc) chairman Alwyn Rautenbach. Bidair and Menzies Aviation have been granted two of the three ramp handling licences while a third is still to be awarded. Equity, which says it has invested in a fleet worth more than R850m and employs 3 000 casual and permanent employees, wanted the High Court to extend its contract until a third licensee was named. Commercially it would be impossible for the company to mothball operations until this decision is taken without severe financial strain. Airlines, in the meantime, are concerned about the ability of the new licensees to step into the breach at such short notice. “We have had meetings with Acsa and the newly appointed handling companies and they have given us the assurance that they have sufficient equipment available to handle the load,” said Rautenbach. “They say they are ready to fly in more equipment if necessary.” But costs appear to be a big issue. “The new handling companies have had to employ full-time staff and import costly new equipment, which means the cost of handling has escalated. Quotations from the new licensees indicate that charges will be 2.5 to 4 times higher than before,” according to one of our sources. The new operators also have very little time to gear up for change. Effectively Equity moves out by midnight on February 29 and Menzies and Bidair move in on March 1. At this stage there are plenty of concerns from airlines and handling companies who all need clarity – sooner rather than later.