Menzies predicts airport doom in last throw of the dice

Menzies Aviation Namibia has predicted doom at the Hosea Kutako International Airport (HKIA) ahead of the planned takeover of local outfit Paragon Aviation - who will now be tasked with providing ground-handling services at Namibia’s busiest airport.

The concerns were laid plain during night-time court proceedings on Monday between the two companies, rounding off arguments just before 23:00.

Menzies had until 21:00 that night to hand over operations to Paragon, according to a Supreme Court ruling last Friday.

A multinational of European origins, the company has been providing ground-handling services since 2014, but lost the contract to Paragon after a tender process.

Menzies argued the hasty transfer of operations could cost it N$60 million in lost revenues.

“The loss of profits has been calculated at one month, 12 months and 18-month scenarios. The loss of revenue per month is thus N$5.2 million. Based on this calculation and for a 12-month period, Menzies would stand to lose N$39 million in revenue. Similarly, for an 18-month period, the amount is N$58 million,” it said.

The company would further incur exorbitant costs exiting its operations at HKIA.

“The costs associated with demobilisation and the associated steps coupled to this are N$771 000 monthly or N$9.8 million per year. It is plain to see what the financial implications on Menzies are, whereas the exact opposite is true when it comes to Paragon and the [Namibia Airports Company]."

Insufficient equipment

Menzies also took issue with the ground-handling equipment Paragon would utilise at HKIA.

“When the NAC brought its urgent eviction application, it was pointed out to the court that Paragon’s equipment was wholly insufficient and did not comply with the tender conditions. Paragon has not provided any information to Menzies that the situation has changed since then.”

The NAC also demonstrated its doubt in Paragon, the company said.

“The NAC can’t offer any inconvenience, as by its own actions it has demonstrated that Paragon is ostensibly not able to perform in terms of the tender. That is why it entered into the current agreement with Menzies.”

The aviation company further claimed it had been informed by Qatar Airways that it would not conduct any cargo flights for the exportation and importation of goods should Paragon take over.

“I have received an email from Qatar Airways in which it was explained to me that a decision was already taken by them – as a result of this ill-conceived decision by the NAC – to cancel all cargo in respect of both imports and exports. Among other things, this will have a devastating effect on the Namibian fishing industry,” manager Emile Smith said.

He added that Paragon lacked the necessary vetting to handle the export of fresh fish, a situation which can result in costly exports through South Africa for local fish exporters.

“Menzies is the only ground-handling operator who has an RA3 certification. If Menzies has to leave HKIA before Tuesday, this RA3 certification will not be available for Namibian exports. This result will be that many fish exports will be compelled to export their fish from South Africa at great additional costs. I can confirm that Paragon is certainly not RA3 certified,” he said on Monday evening.

Unqualified staff

According to Menzies, Paragon will populate the airport with unqualified staff members.

“Paragon simply does not have the required trained staff with valid certifications for Paragon to invade the HKIA.

“Paragon will endeavour to invade the HKIA with untrained and unqualified staff,” the company added.

NAC CEO Bisey Uirab hit back at the concerns raised by Menzies, saying the Namibia Civil Aviation Authority (NCAA) did not find Paragon to be at fault.

“Rendering of ground-handling services is regulated by the NCAA and there is no decision or regulatory finding from the NCAA that suggests that Paragon is not in good standing to render the relevant services at HKIA.”

The NAC had full confidence in the NCAA to carry out its regulatory function, Uirab added.

“We are comfortable that Paragon is able and ready to provide ground-handling services at HKIA as the NCAA has not made any adverse regulatory findings that would prevent Paragon from commencing rendering the aforesaid services at HKIA,” he said.

Operating illegally

Uirab further contended that Menzies was operating illegally at HKIA following the Supreme Court judgement handed down last week.

“The judgment found that Menzies was unlawfully and illegally occupying the premises of HKIA and illegally rendering ground-handling services at the aforesaid airport because it does not have a valid contract or any other legal right to render such services or to be present at the airport,” he said.

Paragon director Desmond Amunyela did not respond to questions on whether his staff members were certified to provide ground-handling services and whether the company had recruited Menzies employees to avert any job losses.

He was equally quiet when asked how Paragon had acquired ground-handling equipment from Air Namibia liquidators Bruni and McLaren.

On their part, David Bruni of Bruni and McLaren would not reveal the terms of agreement the equipment had been sold to Paragon for, and for what price.