24 March 2013

Ethiopia: Federal High Court Hearing Ethiopian, Nigerian Airlines Case

Nigerian domestic flyer, Chanchangi Airlines, has failed to make payments to Ethiopian Airlines for maintenance services

The charge by Ethiopian Airlines against a Nigerian domestic flyer, Chanchangi Airlines, which failed to pay 14 million Br for maintenance services rendered to it, will be heard on April 1, 2013, at the Federal High Court.

Chanchangi, one of seven domestic airlines in Nigeria, is located in Kaduna city, the capital of Kaduna region in north central Nigeria.

Chanchangi had a deal with Ethiopian Airlines for 772, 346 dollars on February 9, 2004, for the maintenance of an aircraft and engine. However, Chanchangi did not pay the money. The two parties agreed on June 8, 2010, to verify the service provided by Ethiopian.

Ethiopian provides maintenance services for MD11, B777, 757 and 737 aircraft.

Chanchangi agreed to pay the money within 60 days, giving it priority provided it got financing from sources. When that did not pan out, the parties agreed that Chanchangi would pay 584,072.62 dollars, to begin with, and receive the engine maintained by Ethiopian. It would then pay the 188,273.83 dollar balance over four months in equal installments.

If that too failed, Chanchangi was to pay a fine amounting to 12pc of the total sum.

In the end, Chanchangi failed to make the required payments and Ethiopian took the case to the Federal High Court on January 25, 2013, based on the June 2010 agreement, to resolve their difference in court.

The Court's eighth bench, Judge Hussein Yimer, ordered Ethiopian to mail the charge to Chanchangi, which it did on January 31, 2013. He also ordered Chanchangi to give its statement of defence on March 24, 2013, at 10:00am.

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