German firm sues Fly540 over aeroplane engine repairs
Posted Thursday, August 2 2012 at 21:10
A German firm, Lufthansa Technik, has moved to court seeking a permanent order restraining Fly540 from disposing of an aeroplane engine.
Lufthansa Technik is also demanding Sh26 million from Fly540 together with interest from the date of filing the suit plus Sh69 million —being the value of the engine and a hydro mechanical unit and the cost of the suit.
The aircraft engine repair and lease firm says Fly540 Aviation Limited failed to pay for services provided and 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.
Fly540 in turn accuses Lufthansa Technik of exaggerating the repair costs.
Court documents indicate that in 2000 Fly540 requested Lufthansa to carry out repairs and maintenance on an engine ESN 121 241.
The German firm said it agreed to service the engine and a contract was signed between the parties on the assumption that it was a normal run-out engine.
Thereafter, Lufthansa says it prepared a cost estimate of Sh29 million which the firm argues was subject to determination of its condition.
However, it argues that its engineers discovered upon inspection that the engine was in worse condition than what Fly540 had indicated and that it required more repairs than earlier estimated.
Lufthansa says the aeroplane engine in dispute was leased to Fly540 as a replacement for the one being repaired in its workshop in Germany.
The engine was intended for use in DHC 8-102 aircraft owned by Avmax Aircraft Leasing Company.
In defence, Fly540 has denied that its engine required more repairs, saying Lufthansa Technik had exaggerated the magnitude of the repairs and services of the engine.
Fly540 said the agreement it entered with Lufthansa was for specific works to be carried out on the engine and not outside the scope of the contract.
“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,” says Fly540 in response to the suit. Justice George Odunga on Monday adjourned the case to October 19 for further directions.