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Home Companies

Menzies loses bid to cling onto airport ground handling tender

by editor
June 29, 2022
in Companies
47
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Menzies Aviation has lost its bid in the Windhoek High Court to cling onto the multi-million-dollar Hosea Kutako International Airport ground handling services tender after the Namibia Airports Company (NAC) had approached the courts seeking relief to terminate the contract when it lapses on 30 June, 2022.

In a blow to its bid, Justice Orben Sibeya ordered the global ground services and cargo handling company to cease its operations at the airport tomorrow (Thursday) and make way for the new operators, Paragon Investment Holdings and its partners, Ethiopia Airlines.

“It is declared that the agreement entered into between the applicant and the first respondent for the first respondent to provide ground handling services at Hosea Kutako International Airport shall terminate on 30 June 2022. It is declared that the first respondent shall at the end of the day on the termination date: cease to provide ground handling services at HKIA; hand over all security access cards or other equipment entitling it to access HKIA or any premises which it occupies at HKIA by virtue of the ground handling services agreement with the applicant; and vacate occupation of any premises at HKIA occupied by virtue of the ground handling services agreement,” the High Court order read.

“If the first respondent refuses to give effect to the order set out in paragraph 3 above, then the Deputy Sheriff of this Court is directed to: evict the first respondent from HKIA and from all premises at HKIA occupied by the first respondent by virtue of the ground handling services agreement; and remove all equipment belonging to the first respondent from the HKIA.”

Menzies Aviation’s contract is due to lapse on 30 June, paving way for the joint venture between Paragon Investment Holdings and Ethiopia Airlines to start offering ground handling services at the country’s main international airport with effect from 1 July.

In court papers filed before the Windhoek High Court, Menzies had claimed Paragon Investment Holdings and its partner, Ethiopia Airlines did not have the capacity to handle ground handling services at the country’s biggest airport.

 According to court papers filed, the Paragon Investment Holdings and its partner, Ethiopia Airlines’ winning bid has guaranteed the NAC N$538 000 in income per month.

Menzies has been providing passenger and cargo handling services at HKIA since February 2014, with its contract having been extended twice before. 

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