Aircraft Maintenance Legal Dispute

The Kumul Beech * King Air, known as Kumul *, was purchased by the government in * for US$*.* million from Hawker Pacific, now Jet Aviation, based in Cains, Australia. The Kumul * went into maintenance in *, and ever since then, it has been idle and unable to fly out of the Jet Aviation Hangar. A maintenance agreement was signed between the government of Papua New Guinea (PMNEC) and Hawker Pacific in August * for Hawker Pacific to maintain the aircraft. The contract expired on August 31st, *. PMNEC continued to pay the invoices provided by Jet Aviation. Since Kumul * went into maintenance, the total cost of maintenance paid from 03rd March * to 12th December * is K4,*,*.* as extracted from the IFMS system. The Payments were expended as per the invoices for keeping the Aircraft at the Jet Aviation Workshop. In November *, the PMNEC enquired for the plane to be flown back to PNG and requested for full maintenance work to be carried out, therefore we received a quotation of $*,* equivalent to K1,*,* at the exchange rate of $AUD *.*, this amount us for the full actual maintenance costs that need to be done for the Aircraft before the Kumul * can fly again. In the signed maintenance agreement, clause *.* under the Charges and Payment terms states that ‘upon expiration or termination of this Agreement (the maintenance agreement) all amount remaining due and payable hereunder by the operator including any complete or incomplete work not invoiced shall be invoiced by Jet Aviation and paid by the operator as provided above’. Jet Aviation has failed to comply with the maintenance clause in the agreement. clauses *.*.* “at all times use its best efforts to provide optimum services to operator consistent with Jet Aviation workload and commitment on hand and manpower and resources available from time to time,” clauses *.*.* ensure all work is carried out by appropriate qualified and competent staff. Clauses *.*.* ensures all work is carried out in compliance with all applicable legislation and regulations and orders thereunder the maintenance schedule applicable to the aircraft and the logbook certification is signed by a licensed aircraft maintenance on behalf of Jet Aviation One year later the aircraft is unable to fly. Upon the PMNEC visit, it was established that some parts of the engine had a built up rust and would need more work and would cost a lot more to clean it up. The PMNEC did an initial inspection of the plane, it was freshly painted white and had little blue plastic covers attached to conceal parts of the wings exposed to protect it from humidity and rust from the tropical climate of Cairns. The Interior of the aircraft was completely ripped off including the seats, carpets, and walls for new installations to be put into the plane. provide legal advice on above facts. Use PNG Case Laws and Statutory to provide legal advice