Local Air Ltd. operated a charter airline service that specialized in flying small groups to specified...

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Local Air Ltd. operated a charter airline service that specialized in flying small groups to specified locations. Their fleet consisted of three small eight-passenger twin-engine aircraft. While on a charter to a nearby city, one of its aircraft developed a problem with one of its engines, and the pilot, on the authorization of the company, took it to an aircraft repair facility located at the airport. A second aircraft was dispatched to retrieve the passengers and the pilot when it appeared that the repair would require parts that had to be ordered from the aircraft manufacturer. The parts arrived in due course, but before the engine was repaired, a government air worthiness directive was received by the repair facility that required aircraft owners to make an engine modification in order to receive an airworthiness certificate. In response to the directive, the repair facility made the modifications to both of the engines, then signed off that the aircraft was now airworthy. The repair facility informed Local Air Ltd. of the work done and invoiced Local Air Ltd. for the repair that amounted to $19,825. When Local Air Ltd. was advised of the repair invoice, they informed the repair facility that in their view the amount was excessive, as the airworthiness repair could have been made at their own shop for half the cost. At this point in the discussion, the repair facility refused to release the aircraft unless the repair account for the aircraft was paid in full. Advise the parties. What are the issues in terms of the law? Speculate as to the outcome. Local Air Ltd. operated a charter airline service that specialized in flying small groups to specified locations. Their fleet consisted of three small eight-passenger twin-engine aircraft. While on a charter to a nearby city, one of its aircraft developed a problem with one of its engines, and the pilot, on the authorization of the company, took it to an aircraft repair facility located at the airport. A second aircraft was dispatched to retrieve the passengers and the pilot when it appeared that the repair would require parts that had to be ordered from the aircraft manufacturer. The parts arrived in due course, but before the engine was repaired, a government air worthiness directive was received by the repair facility that required aircraft owners to make an engine modification in order to receive an airworthiness certificate. In response to the directive, the repair facility made the modifications to both of the engines, then signed off that the aircraft was now airworthy. The repair facility informed Local Air Ltd. of the work done and invoiced Local Air Ltd. for the repair that amounted to $19,825. When Local Air Ltd. was advised of the repair invoice, they informed the repair facility that in their view the amount was excessive, as the airworthiness repair could have been made at their own shop for half the cost. At this point in the discussion, the repair facility refused to release the aircraft unless the repair account for the aircraft was paid in full. Advise the parties. What are the issues in terms of the law? Speculate as to the outcome.

Answer rating: 100% (QA)

The issues in this situation involve the aircraft repair invoice and the refusal of the repair facility to release the aircraft until the invoice is p... View the full answer