Cathay Pacific sues Singapore unit of World Fuel Services

Cathay Pacific Airways filed a claim against World Fuel Services, one of its jet fuel suppliers, for losses incurred due to the supply of contaminated fuel to two of its aircraft at Surabaya, Indonesia, last April 2010. Court records show that Cathay’s A330 aircraft, which was en-route from Surabaya where it was fueled prior to take off for Hong Kong, faced “serious engine problems,” which triggered an emergency landing on April 13, 2010. Another Cathay aircraft on the same route encountered engine pressure. Cathay filed a lawsuit against the Singapore unit of World Fuel Services at the Singapore High Court. Cathay alleged that the cause of the problems experienced by the two aircraft was the quality of the fuel supplied, which was contaminated and was not of “merchantable quality.” Responding to a query from Platts, Cathay Pacific said, “The parties are seeking to resolve the matter on an amicable basis.” According to one trading source, depending on location, jet fuel has “up to 20-30 specifications” involved and has one of the most stringent fuel requirements among all oil products. (May 23, 2012)