Menzies wins Afghan damages

Menzies Aviation has been awarded more than $26m in damages following the 2020 termination of a concession by the Government of Afghanistan.

An International Chamber of Commerce (ICC) Tribunal in London has ruled in Menzies Aviation’s favour following the illegal termination of its subsidiary’s aviation services concession by the Government of Afghanistan in 2020. As a result, the Tribunal has awarded NAS Afghanistan (NAS) (now part of the Menzies Aviation group) damages and compensation of around $26m plus interest.

NAS had been providing ground services at Kabul, Kandahar and Herat international airports in Afghanistan since 2013 by virtue of a contract awarded following an open tender process. At all times NAS fulfilled its contractual obligations, having invested more than $7m, bringing in state-of-the-art systems and equipment, thus significantly raising the operating standards and service levels within each airport of operation.

In October 2019, the Government of the Islamic Republic of Afghanistan, Ariana Afghan Airlines and the Ministry of Transport and Civil Aviation expropriated NAS’ operations in Afghanistan, replacing it with a new operator following what Menzies Aviation describes as “totally unsubstantiated allegations”. They took active and hostile steps to force NAS to surrender its assets and personnel including the sudden imposition of a travel ban on NAS’ expatriate employees.

NAS suffered considerable losses and therefore sought retribution as available under the legally binding contract entered into by all parties. This involved arbitration proceedings before the ICC.

Hassan El-Houry, chairman of Menzies Aviation, said: “I am delighted that justice has finally been served. Under the Presidency of Mr Ghani, the Government of Afghanistan illegally terminated NAS’ contract, expropriated our assets and staff, and took our management team hostage. Governments are not above the law, and we will always take the necessary steps to protect our staff and business interests.”

Image: Menzies Aviation