Lawsuit Possible

The Aircraft Owners and Pilots Association of Australia (AOPAA) said on Monday interim compensation for business losses due to the aviation fuel contamination crisis could cost Mobil Oil Australia Ltd. around A$1.2 million (US$792,000) a day. AOPAA general manager Mike Hart said a meeting would be held with Mobil, a unit of Exxon Mobil Corp. (NYSE:XOM - news), on Friday to try and reach agreement on business assistance packages. Around 5,000 light aircraft remained grounded on Monday by the contaminated fuel, with a test for the contaminant not expected to be finalized until the middle of this week. The association has estimated the cost to the economy from the contamination problem at A$50 million a month. Mobil has only agreed to pay the cost of replacing fuel and checking and cleaning aircraft fuel systems to meet Civil Aviation Safety Authority requirements. Sydney legal firm Ferrier & Associates is collecting information to launch a representative action against Mobil for business losses. Lawyer Spencer Ferrier is also treasurer of AOPAA. The Australian Airports Association said last Friday it was seeking advice on whether airports had justifiable legal claims against Mobil for losses suffered due to the crisis.