30 Sep 2002

Marshalls airline faces problems recovering money from German plane manufacturer

10:26 am on 30 September 2002

An Air Marshall Islands official says the bankruptcy of German aircraft manufacturer, Dornier, will complicate efforts to collect a four point one million court judgement.

Since Air Marshall Islands won the judgement against Dornier Fairchild last year, the German-based company has applied for bankruptcy protection.

It also appealed the Marshall Islands court ruling and that appeal will go to the Marshall Islands Supreme Court on November 20th.

Air Marshall Islands general manager, Norm Splitstoesser, says the bankruptcy application is an added complication to the collection process, but AMI has already filed its High Court judgement in Germany for collection purposes.

The legal dispute involves a down payment on an order for two Dornier 328s in the late1990s that was subsequently cancelled when a new government came into office in early 2000.

The airline currently uses two Dornier 228 commuter planes for domestic services in the Marshall Islands.