A bid proposing a public-private partnership between Bitou Municipality, Cemair and the Hangar Owners' Association, to lease, develop and operate Plettenberg Bay Airport, has been submitted for municipal consideration, Miles van der Molen, CEO of Cemair, told Travel News.
This follows the collapse of a previous agreement between airport developer, rsa.AERO’s Garden Route Aero and Bitou Municipality. After the deal fell through, the municipality resumed responsibility for the airport and invited new proposals for its operational management and maintenance.
“However, it’s very difficult for an airport like that to be a commercial success,” warned Van der Molen. “Since the signing of the now defunct rsa.AERO deal, the condition of the runway has deteriorated, vegetation has grown and other maintenance aspects have lagged. The cost of regaining commercial certification continues to grow and, as more time passes, the situation will worsen.”
According to Van der Molen, the deal with rsa.AERO fell through because Garden Route Aero and Bitou Municipality could not reach an agreement regarding the funding required for the airport’s runway repairs and maintenance.
During the dispute, the South African CAA revoked the airport’s commercial operating licence due to maintenance backlogs on the airport’s runway.
In July 2024, Bitou Municipality sought legal counsel regarding the funding dispute. The counsel found that the contract, signed by Bitou officials and rsa.AERO in February 2024, was commercially inadequate, according to Steve Pattinson, the Chair of the Plettenberg Bay Residents' and Ratepayers' Association and the Head of the Hangar Owners' Association, quoted in an article in Knysna-Plett Herald.
"It was a one-sided affair with an absence of specific obligations and responsibilities, and lacking in any performance measures, timelines and consequences for the operator for non-performance," said Pattinson in the article.
On January 15, rsa.AERO formally placed Bitou Municipality in breach of contract and asked for a settlement of R6 million to exit the deal.
According to Diedre Davis, Spokesperson for Garden Route Aero, the operator had made significant investments into consulting engineers to assess and develop solutions for runway remediation, acquiring aviation gasoline and Jet A1 fuel equipment, upgrading the terminal building, submitting safety and security manuals to the Civil Aviation Authority, and various other improvements. However, Bitou Municipality reimbursed approximately 30% of the actual costs Garden Route Aero incurred and agreed to pay a settlement of only R1,8 million.
According to Patty Butterworth, CEO of Plett Tourism, the failure of the airport contract will limit direct access to the town, negatively impacting Plettenberg Bay's tourism-driven economy.
“We are hopeful the Bitou Municipality understands the urgency of instating a new contract as quickly as possible to reinforce Plettenberg Bay’s status as a premier tourist destination,” said Butterworth.
