The Airports Company of South Africa (ACSA) said on Tuesday that it is taking legal action to challenge a Gauteng High Court ruling that has temporarily barred it from procuring baggage screening equipment through an open tender process.
The decision comes after a judgment from November 2023 that permitted Aviation Co-ordination Services (Pty) Ltd (ACS), a consortium formed by major airline associations to provide baggage screening services, to replace back-up screening equipment, interdicting ACSA from proceeding with its plans.
The court's ruling stems from a review application recently lodged by ACS, which has performed these screening services for over two decades without an open procurement process.
The application will be heard in the coming months, putting the future of baggage security services at South Africa's airports in a tenuous position. ACSA argues that the ruling infringes upon its constitutional mandate and legislative role as the airport authority, compelling it to provide essential baggage screening and handling services.
The upcoming hearing on Tuesday is pivotal for ACSA, as it seeks leave to appeal the November judgement, which the company claims impedes it from fulfilling its responsibilities under Section 217 of the Constitution and the Public Finance Management Act.
“The judgement has the effect of stopping a state organ from complying with the Constitution, its legislative mandate, and preserving an evergreen contract,” ACSA said in a statement.
ACSA added it is not only fulfilling a legal obligation but also striving to enhance operational efficiency and cost-effectiveness.
The company believes a transparent open tender process is necessary for regulatory compliance, ensuring that the tariffs charged adhere to an existing economic regulation model for airports.
"The decision to bring baggage screening services in-house aligns with ACSA's overarching strategy to improve service delivery and sustainability at South African airports. By taking this step, ACSA aims to enhance the safety and security of passenger luggage while also maintaining a fair competitive environment among service providers," ACSA further stated.
"As stakeholders await the outcome of the hearing, the aviation industry is left to ponder the implications of this legal battle on the future of baggage screening practices and the potential shifts in operational management at South Africa’s major airports," ACSA said.
BUSINESS REPORT