Air NZ battles PNG airline

Air New Zealand is seeking nearly half a million dollars in unpaid invoices from Papua’s New Guinea’s national carrier Air Niuguni in the Auckland High Court today.

Air New Zealand's total claim against the airline is for $421, 959 plus $40,000 in interest costs.

Air New Zealand's engineering services provided equipment to Air Niuguni and charged $61,4000 on September 19, 2007.

The company also carried out repair work and supplied materials for one of Air Niugini's 'cowling' systems where the cooling air is discharged in the low-pressure area near the nose of an aircraft.

For this job, the company charged $170,000 for labour and $172,000 for materials.

Air New Zealand's lawyer Nathan Gedye says Air Niugini disputes the "excessive" labour charges but doesn't provide supporting facts or documents. Air Niugini isn't disputing the materials fee.

Air Niugini has no credible evidence to support its refusal to pay part of this invoice because Air New Zealand had provided an estimate of the costs before carrying out the work, argues Gedye.

Also Air Niugini's chief executive Wasantha Kumarasir had assured Air New Zealand the larger invoice, of $342,000, would be paid on time.

Gedye said his argument was backed up by the fact that Air Niugini had failed to dispute the invoices within 15 days once it had received them. Any invoice not disputed within 15 days is deemed to be accepted by Air New Zealand.

Air Niugini argues the replacement 'cowling' system was rusted and not supplied to the airline in the appropriate time frame.

It has lodged a counter-claim alleging a breach in the return of aircraft from the engineering services of Air New Zealand.

The case continues.