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PLETTENBERG BAY NEWS - The deal between the Bitou municipality and rsa.AERO to upgrade and develop Plettenberg Bay Airport has crashed.

Bitou council, on Friday 14 February at a special council meeting, adopted a resolution that will lead to the termination of its agreement with rsa.AERO, a year after the company won a tender to operate and manage the airport.

The ruling alliance voted 7 to 5 to accept municipal manager Mbulelo Memani's recommendation to formalise the termination agreement.

Memani said in his report to council the two entities had reached a stalemate over a contractual dispute.

The municipality wanted to “rectify" a signed agreement with a new agreement and service level agreement, drawn up by legal counsel, that rsa.AERO did not accept.

This rendered the “whole process to be mute”, said Memani in his report.

Rsa.AERO has claimed about R6 million from Bitou to exit the agreement and Memani recommended the council pay only about R2m.

Read more in next week’s Knysna-Plett Herald.

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