A court in Shanghai began to hear a lawsuit on Jan. 22 by a European cargo airline, which blamed a Chinese service provider for an aircraft damage.

Cargolux Airlines International sued that Taikoo (Xiamen) Aircraft Engineering Co. Ltd. for US$13 million in compensation for causing damage of a Boeing 747 plane in 2006, Jan. 23's China Daily reported.

However, Taikoo denied any liability during the court hearing at Shanghai High People's Court.

According to the indictment, Cargolux signed a contract on ground operations with Taikoo in 2000.

On Jan. 25, 2006, a Cargolux Boeing 747-400 landed at Shanghai Pudong International Airport.

When Taikoo employees attempted to tow the plane to a service area, they found its landing gear door could not be opened. An inspection was conducted and the problem was solved.

However, when an engineer later switched on the hydraulic system, the plane lunged forward and nose-dived.

"The engineer failed to pull back the ground lock pin," Cargolux's attorney Jin Yulai said.

The incident caused damage to the nose cone, he said.

Cargolux claimed it spent more than US$13 million to repair the damage, which it claimed from its insurance companies. The firm and its insurers are now suing Taikoo.

"After the incident, an engineer named Yang admitted he had made a mistake in a fax sent to Cargolux," Jin said.

However, Taikoo's attorney said Yang's comments did not represent the views of the firm and that he had a previously exemplary record. No verdict was reached at Jan. 22's hearing.

"The contract says the company (Taikoo) should pay compensation only if it deliberately causes damage, or acts with full awareness in a way that could cause damage," said Yang Hua, Taikoo's attorney.

"The firm did not act in such a way or perform any faulty operations during the maintenance work," he said.

Photograph: Accident site at Shanghai Pudong International Airport on Jan. 25, 2006. Photo by CARNOC.com message board member - B8888.