Business Day (Johannesburg)

South Africa: Equity Loses Bid to Have Its Licence Extended

Johannesburg — AIRPORTS logistics operator Equity Aviation Services lost its bid in the Johannesburg High Court on Friday to compel Airports Company SA (Acsa) to extend its licence until a third baggage handling licence had been awarded.

Judge Thami Makhanya rejected the Equity application, and said he would furnish reasons at a later date if they were requested. The news was met with stunned silence by Equity staff members who had been attending the hearing.

The urgent application was launched by Equity Aviation Services and its holding company Equity Aviation Holdings after it received a letter in December informing it of the termination of its contract with Acsa.

Equity had been working month to month since April 2006 after it lost in an arbitration process.

Equity spokesman Herman Fleishman said after the judgment that Equity would be looking at expanding other services offered by the company.

"Equity is an international company, and only 17% of the business is baggage handling, so we will have to look at expanding other services," he said.

"We still have the most equipment, and time will tell whether the new operators will be able to cope. We will see who will come back to ask for help."

The company has not yet decided whether to appeal or apply for the third licence. Fleishman said this would have to be decided by the board.

Acsa spokesman Soloman Makgale said on Friday that Acsa was pleased with the outcome.

"We are convinced that when the relationship with Equity finally comes to an end on February 29, the two new operators, BidAir and Menzies, will assist us a great deal in improving services and reducing baggage pilfering."


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Comments 1 to 1 of 1 Post a comment

  • cullenfourie
    Feb 13 2008, 13:53

    This is South Africa. We are still a young and upcoming comunity to the rules and regulation to world of business. Our leaders can not even cope. I am a staff member of equity Aviation, and yet i sit at home knowing that my job is treaten. Equity has lost its bid, i understand. Why doesn't ACSA,BIDAIR OR MENZIES come out and tell the employees of Eqiuty Aviation where we stand. Are they going to take all the employees or do we have to start all over. Some of us has been without jobs for years. Equity gave us hope. Yet we do not know whether our hopes has been destoy or not. This is the reason why people do things like pilferage. They do not know what's is going to happen next. Than they have to take the matter in there own hands, most of the times which leads to negativity. Start hijacking,housebreaking,ect. You know what i am talking about. Tell people whats the next step and all these negative things won't have to happen. Then we don't have to wonder how are we going to pay the rent,our bills,food on the table after the 29th of febuary. I would reall appreciate it. Thanks from Kilanty