VENTURES AFRICA – German firm, Lufthansa Technik and low cost airline Fly540 Aviation Limited, are locked in a multi-million court case over the repair of an aeroplane engine.
Lufthansa Technik has moved to court seeking a permanent order restraining Fly540 from disposing off the aeroplane engine, Kenya’s Business Daily newspaper has reported.
Lufthansa Technik claims Fly540 failed to pay for services provided while the airline is accusing Lufthansa Technik of exaggerating the repair costs.
The German firm is also demanding 26 million shillings ($308,000) and interest from the date of filing the suit . The aircraft engine repair and lease firm also wants Fly540 to pay an additional 69 million shillings ($819,000) as the value of the engine, the hydro mechanical unit and cost of the suit.
According to court documents, Fly540 asked Lufthansa to repair and carry out maintenance on an engine ESN 121 241 in the year 2000.
Lufthansa is seeking a permanent injunction restraining Fly540 from alienating, disposing of, or advertising for sale a PW 121-8 engine and a hydro mechanical unit which it says was leased to Fly540 as a replacement for the one under repair.
Lufthansa says it prepared a cost estimate of 29 million shillings ($344,000) . But later found out that the engine was in a worse condition than what Fly540 had indicated. Thus it required more repairs than what earlier estimates showed.
Fly540 in defense says the engine did not require more repairs and that Lufthansa Technik had exaggerated the magnitude of the repairs.
“The agreement was for specific works to be carried out on the engine and the claim for higher costs is based on works Lufthansa wanted to carry that was not subject to the contract,” said Fly540 .
The case has been adjourned to October 19 .
This new case adds on to the legal troubles for the regional airline. The Standard Newspaper reported late last month that Finejet Ltd, a company involved in provision of aviation services filed a petition at the High Court demanding that Fly540 be wound up over a 55 million shillings ($653,000) debt.