Airport services to switch after appeal judgement

The Namibia Airports Company (NAC) says the airport services company Menzies Aviation (Namibia) is due to hand over operations at Hosea Kutako International Airport to a competitor, Paragon Investment Holdings, with effect from tomorrow.

This is after Menzies Aviation on Friday lost an appeal against a High Court judgement in which it was declared that its contract to provide ground handling services at Hosea Kutako International Airport came to an end at the close of June last year.

In a statement issued after the delivery of the Supreme Court’s judgement, NAC chief executive officer Bisey /Uirab said Menzies Aviation has indicated it is prepared and ready to finalise handover arrangements by the close of operations at the airport today, and that Paragon would start to provide ground handling services at the airport from tomorrow.

Also on Friday, Menzies Aviation issued a statement in which it said it has made it clear to the NAC and Paragon that it will continue with court proceedings to set aside the contract awarded to Paragon.

The company said in its view, an eviction notice that the NAC sent to it “is unreasonable and practically unachievable”, and would jeopardise the safety and security of ground handling operations at the airport.

“We are working around the clock with our legal team to ask for judicial relief to prevent the new contract from being implemented, or at least to obtain urgent relief to secure a reasonable and practicable transition process,” Menzies Aviation stated.

Windhoek High Court judge Orben Sibeya on 29 June last year declared that the NAC’s ground handling services agreement with Menzies Aviation would end on 30 June last year.

Sibeya’s order was given after Menzies Aviation launched an application in the High Court to have the airports company’s decision to award the ground handling services contract at Hosea Kutako International Airport to Paragon Investment Holdings reviewed and set aside.

The NAC reacted to Menzies Aviation’s application by launching an urgent application in which it asked the court to declare that its agreement with Menzies Aviation would terminate at the end of June last year, and that the company would then have to vacate the premises it has been occupying at the airport.

Menzies Aviation had the contract to provide ground handling services at the airport since the start of 2014. It has continued to provide the services while its appeal against the High Court’s judgement was pending.

In the Supreme Court’s judgement, acting judge of appeal Theo Frank commented that Menzies Aviation was unlawfully holding on to the premises it has been using at the airport and in effect has been forcing the airports company to make use of its services.

“What we are faced with is Menzies who resorted to self-help to remain in possession of the premises, and hence, because of the necessity of the services, is in essence blackmailing the NAC to use them in the meantime,” Frank stated.

Since Paragon Investment Holdings had been awarded the contract after a bidding process and the award has not been set aside, it should be allowed to act in accordance with its bid, Frank said. The lawfulness or otherwise of the awarding of the contract will still have to be decided in the review application that is pending in the High Court, he also said.

Appeal judges Sylvester Mainga and Elton Hoff agreed with Frank’s judgement.

Senior counsel Raymond Heathcote, assisted by John-Paul Jones, represented Menzies in the appeal, which was heard in April this year.

The NAC was represented by senior counsel Jeremy Gauntlett and Unanisa Hengari, while Sisa Namandje and Taimi Iileka-Amupanda represented Paragon.