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AOPAA and Mobil to discuss business assistance for airline affected by fuel contaminant.

AIRLINE INDUSTRY INFORMATION-(C)1997-2000 M2 COMMUNICATIONS LTD

The Aircraft Owners and Pilots Association of Australia (AOPAA) has said that it will be meeting with Mobil on 21 January to discuss business assistance packages for aircraft operators affected by contaminated fuel produced by Mobil Oil Australia Ltd.

A test for contamination is not expected until midweek and about 5,000 Australian small aircraft remain grounded.

AOPAA has said that it expects that the fuel crisis could cost Mobil around AUD1.2m per day, but that the costs to businesses relying on aircraft grounded by the incident are still being calculated. So far Mobil has only agreed to pay for the cost of replacing fuel and for the measures required to check and clean fuel systems under airworthiness directives issued by the Civil Aviation Safety Authority.

Although Sydney law firm Ferrier & Associates is in the process of collecting information for a representative action, AOPAA is hoping to reach a settlement with Mobil out of court, with Mike Hart, AOPAA`s general manager, saying that `I just don`t think it is in the industry`s best interests to try and fight this through the courts.`

The Australian Airports Association also indicated on 14 January that it was looking at whether airports had any justifiable legal claims against Mobil for losses incurred through the contamination crisis.

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Publication:Airline Industry Information
Article Type:Brief Article
Geographic Code:8AUST
Date:Jan 18, 2000
Words:236
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