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.