ACS secures baggage handling monopoly as court dismisses ACSA appeal

Banele Ginidza

The Aviation Co-Ordination Services (ACS) has celebrated its hold on the over multi-billion rand baggage handling monopoly after the Gauteng Division of the High Court dismissed the Airports Company of South Africa's (Acsa) appeal against an order that stopped it from procuring baggage screening equipment.

In a statement on Friday, ACS welcomed the high court decision, saying it said confirmed that the critical replacement of aged Hold Baggage Screening (HBS) equipment may proceed at key international airports, which is crucial to ensure public safety and airport efficiency.

The ruling upholds the High Court’s mandamus order of 5 November 2024, requiring Acsa and the South African Civil Aviation Authority (SACAA) to allow ACS to replace the relevant equipment at OR Tambo and King Shaka International Airports while a main review case is still before the courts.

The fallout between ACS and Acsa stems from the airport manager's decision in 2023 to terminate ACS’ longstanding role in providing baggage screening services with the intention of taking over these services directly. 

The ACS said Acsa went ahead with this even though it is the airlines, and not Acsa as the aerodrome operator, that is responsible for providing HBS services at airports (with ACS legally mandated by the airlines to operate and manage HBS).

ACS said it had provided uninterrupted, efficient and cost-effective HBS operations at Acsa airports for more than 20 years – with its operations commended as an example of global best practice.

In response, ACS approached the courts to review and set aside Acsa’s decision to insource HBS services including issuing a R3.15 billion tender for HBS equipment.

The company said to avoid service disruption while this main matter is under review by the courts, ACS applied for urgent relief to ensure that it could continue upgrading aging HBS equipment at OR Tambo and King Shaka airports.

The High Court granted this request in November 2024, stipulating that  ACS is permitted to replace four Level 3 back-up HBS units at OR Tambo and King Shaka International Airports and that SACAA must approve the replacement and allow the process to be completed within ten days of the order being made.

ACS said Acsa and SACAA had sought to suspend these directives through an appeal, arguing that they should not be enforced while broader legal proceedings, mainly the review of Acsa’s plan to insource HBS services, are ongoing.

However, the High Court judgment has dismissed this appeal, affirming that these orders remain operational and enforceable during the review process.

“The replacement of these units is essential to maintaining uninterrupted, internationally compliant baggage screening services at South Africa’s major airports,” said Duke Phahla, CEO of ACS.

“We are pleased that the Court has recognised the urgency and importance of this work, and that we can now move forward in the interests of all airline passengers.” 

BUSINESS REPORT