More court action in aviation battle

Aviation heavyweights The Helicopter Line and Airwork Holdings are headed back to court, with Airwork going to the Court of Appeal over a High Court case it won and was awarded more than $2 million.

Queenstown-based The Helicopter Line, whose parent is listed as global tourism operator Skyline Enterprises, operates an extensive tourist helicopter fleet covering much of the lower South Island.

Auckland-based Airwork Holdings owns and leases out helicopters and numerous freight aircraft, including several Boeing 737s.

After The Helicopter Line broke a 20-year helicopter leasing deal with Airwork, citing numerous safety concerns, Airwork then sought $16.2 million from the High Court for ‘‘shortfall hours'' of chopper flying times and also expected loss of profits.

Airwork was awarded $2 million plus unspecified interest payments in the May High Court decision.

That decision found The Helicopter Line, at least in part, was contractually liable to Airwork, but the judge went on at length to say The Helicopter Line directors were justified in deciding there were serious safety risks to passengers and flight staff.

In a separate development, following an Official Information Act request to the Civil Aviation Authority by the ODT last month, it said this week it was investigating 24 incidents to ensure all had been acted on.

In a preliminary full-year announcement just released by Skyline chairman Mark Quickfall this week, he said Airwork and subsidiary Heli Holdings had gone to the Court of Appeal to appeal the High Court decision.

When contacted by the Otago Daily Times, Mr Quickfall said Airwork had appealed the decision and The Helicopter Line was in the process of lodging a "cross-appeal of some aspects of the [High Court] decision'', but declined to elaborate further.

Airwork chief executive Chris Hart was contacted for comment but a spokeswoman said he was in meetings then flying overseas, and given he was the company's only spokesman "will be making no comment''.

simon.hartley@odt.co.nz

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