Johannesburg — AIRPORT logistics provider Equity Aviation goes to court tomorrow in a last-ditch bid to prevent Airports Company SA (Acsa) from terminating its services at all of SA's airports at the end of next month.

Equity Aviation, which says it has invested in a fleet worth more than R850m and employs 3000 casual and permanent employees, is asking the Johannesburg High Court to recognise a 2001 contract, which it says extends Equity's licence until 2011, or to grant an order extending its contract until Acsa selects a third licence operator.

Equity provides services to South African Airways (SAA) and 44 other airlines at local airports.

The two-year battle between Equity and Acsa arose after Acsa invited bids for the lucrative baggage handling contract for its 10 airports. Acsa said it planned to award three new ramp handling licences after the expiry of Equity and Swissport's ramp handling licences this year.

Two of the licences have since been awarded, one to Menzies Aviation, an international ground handling company, and the other to BidAir Services, a local company within the Bidvest group.

An interim agreement has also been drawn up between Swissport and SAA, with Acsa's blessing, to provide services solely for SAA until a third operator has been chosen.

Equity spokesman Herman Fleischmann said the arrangement left Equity out in the cold.

"At the very least, we are asking for the same deal given to Swissport," he said.

Acsa has remained largely silent on its fight with Equity, saying only that its contract with the company ended in April 2006 and that Equity had been employed on a month-to-month basis. It said Equity had chosen not to tender for the first two licences.

Equity, formerly Apron Ser-vices, says that when Apron Services was privatised in 2001 the government agreed to extend its licence to 2011.

The matter was taken to the Johannesburg High Court in 2006, where a judge ordered arbitration and interdicted Acsa from calling for tenders until an arbitrator had made a decision.

Equity lost the arbitration process last June and the appeal in November, after a private arbitrator recognised Acsa's contract with Equity as valid.

Acsa said that the tenders were part of continuing efforts to improve ramp handling and baggage security after increased baggage theft.

Fleischmann argues that systems within Acsa rather than faults with existing baggage- handling companies have created the theft problem. He said Equity could not have tendered for the first two licences because it was fighting the matter in court.

Acsa spokesman Solomon Makgale said: "We hope Equity will seize this opportunity and participate in the (third tender)."

Acsa disputes claims that jobs will be lost as a result of Equity's contract not being renewed.

"About 75% of baggage handling personnel work is being carried out on a temporary basis or through labour brokers, which impacts directly on the level of service rendered. Acsa is of the view that the appointment of the new companies is an opportunity for many now working as casual labourers to get full-time employment," Makgale said.