Ansett may sue CASA over aircraft grounding

Airline Industry Information, April 23, 2001

AIRLINE INDUSTRY INFORMATION-(C)1997-2001 M2 COMMUNICATIONS LTD

Ansett has stated that whilst it is thankful to have the threat of shutdown removed by the Australian Civil Aviation Safety Authority (CASA), it is considering suing the authority for AUD2m in revenue that it lost while its fleet of ten Boeing 767 aircraft were grounded.

The carrier, which is owned by Air New Zealand, was not clear of all problems after being given the all-clear from CASA, with the authority finding that one of Ansett's 767s was equipped with a landing gear part that should have been replaced about two months ago, according to The Sydney Morning Herald online edition. A spokesperson for CASA stated: 'It is one of those parts the manufacturer said should be changed and is symptomatic of the problems that Ansett has pledged to address.' CASA however is also under pressure to change the way it overseas the airline industry, including tightening scrutiny on how airlines implement aircraft manufacturers' service bulletins.

Despite discovering the problem, CASA went ahead with its decision that Ansett would not be required to show why it should keep its operating licence. Ansett has however agreed to overhaul its maintenance division and will also conduct a review of staff levels and make changes to its management and work practices.

In return for agreeing to the above conditions, Ansett was able to start operating one of its inspected Boeing 767s on Friday evening (20 April). The aircraft operated its first flight in about nine days between Sydney and Melbourne and each passenger was given a bottle of champagne to celebrate the clearance to fly. Ansett has also apologised to customers affected by the latest crisis by placing full-page advertisements in major Australian newspapers on 19 April.

The advertisements in The Sydney Morning Herald, The Australian, The Daily Telegraph and The Australian Financial Review said that the Easter break period had been one of the airline's most difficult times and Ansett chief Gary Toomey stated in a letter to customers that the airline was 'truly sorry' for any inconvenience caused, according to msn.com.au.

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