THE Manila International Aviation Service Corp. (MIASCOR) has called on GMR-Megawide Cebu Airport Corp. (GMCAC) to honor its contractual obligation to the aviation cargo handler.
MIASCOR said GMCAC must immediately grant the license to develop, operate and maintain ground handling facilities, as well as provide ground handling services at the Mactan-Cebu International Airport.
Lawyer Earl Versoza, MIASCOR general manager for Visayas and Mindanao, said GMCAC ordered them to vacate the airport on May 23, which will lead to the termination of 600 employees.
GMCAC is headed by president Louie Ferrer of Megawide Corp. and chief executive adviser Andrew Anderson of GMR Limited of India.
Versoza said GMCAC issued a letter of award to MIASCOR last Jan. 12, good for seven years, starting July 1, 2018. However, it was revoked last Feb. 19.
As required by GMCAC, Versoza said MIASCOR will invest P400 million for brand new equipment which should be in place by September.
MIASCOR has operated at the Mactan airport for 26 years now and caters to 70 percent of cargo handling operations on international flights.
GMCAC assumed airport terminal operations in 2014 after winning the bid.
In a statement, GMCAC said MIASCOR’s contract for ground handling expired last Oct. 31, 2015, and MIASCOR does not have a valid contract with GMCAC.
“The expired contract was entered into between MIASCOR and MCIAA, and a new contract was being negotiated with GMCAC,” read the statement.
GMCAC added that as part of ground handling tender for new ground handling contracts effective June 2018 for seven years, MIASCOR was one of the four independent ground handling companies to be issued a letter of award last Jan. 12.
Grounds
“A letter of award is not a contract, but is a preparatory stage to entering into a contract with MIASCOR. GMCAC decided to cancel the letter of award because Mactan Cebu International Airport Authority (MCIAA), on behalf of the Philippine Government, prohibited the award to MIASCOR in line with baggage pilferage in Clark and Manila International Airport Authority (MIAA).
“It was their directive that ground handlers doing business at Mactan-Cebu International Airport (MCIA) should have unquestioned integrity and spotless records,” read the statement.
Under the terms of the bid, MIASCOR is required to disclose any material information relating to their performance that GMCAC should be aware of.
“MIASCOR failed to disclose to GMCAC the 18 out of 26 alleged pilferage incidents in MIAA, a material information that is critical in assessing MIASCOR’s capacity to perform their obligation,” GMCAC said.
Under the bidding process, and prior to signing of license agreement, GMCAC said it reserved the right to accept or reject any proposal.
GMCAC said that it is for these reasons that it decided to terminate the letter of award to MIASCOR. (EOB)