Fiji Airways Israel charter lawsuit returns to court

By Andrew Curran.

Suva’s High Court has heard arguments about whether parties who chartered a Fiji Airways jet to fly pilgrims to Israel and back in 2023 should have to pay the multi-million-dollar amount still owed.

The majority state-owned airline is pursuing more than FJD3.16 million (USD1.43 million) in unpaid charter fees, plus ever-growing interest and costs. The matter is Fiji Airways v. WABS Pacific Pte Ltd.

The charter involved transporting over 170 passengers to Israel and back in October 2023 for the Feast of Tabernacles. While the pilgrims were on the trip, Hamas launched its attack on Israel and the return flight to Fiji segued into a repatriation flight that included non-pilgrim passengers.

The chartering parties say they lost control of the charter. But the airline maintains the charter was “substantially performed.”

Charter not paid for before flight departed

The charterers were initially obliged to pay Fiji Airways in full before the charter occurred. Instead, after paying only one of three deposits, the airline accepted a deed of forbearance and guarantee agreement signed by WABS Pacific and the flights went ahead.

Once the pilgrims were safely back in Fiji, many, having only paid deposits, failed to pay the rest.

WABS Pacific has argued that because of this, they couldn’t pay the full amount owed to Fiji Airways, even if they wanted to.

In any event, WABS doesn’t want to pay. It argues the Fijian Government took over the return flight, using it as a repatriation flight. WABS says that alongside the pilgrims, non-fare paying Fiji Airways employees, government officials, and their family members were onboard.

“(The government) took the credit publicly, speeches, press releases and a huge welcome ceremony, but the government refused to cover the bill of the repatriation flight. Fiji Airways still insisted the charter client owed,” Aero South Pacific has previously reported one of the organisers saying.

Fiji Airways still insists the charter client owes, and the matter is heading towards trial.

Applications aired in court this week

Alongside WABS Pacific, other defendants include Kane Holdings PTE Limited; trustees of the International Christian Embassy Jerusalem (ICEJ) (including the late Viliame Gonelevu, the late Aisake Kunanitu, Ana Soqeta, S. Tawakevou, and Mikaele Mudreilagi); Christian Mission Fellowship International Senior Pastor Manasa Kolivuso; and Michael Mausio.

WABS Pacific is owned by an entity called Pacific Voyager, which, in turn, is controlled by Michael Mausio. He is also the owner and director of Kane Holdings. In this matter, WABS acted as a facilitator between ICEJ Fiji and Faith Harvest and Fiji Airways.

WABS had done business with Fiji Airways and other carriers for several years without incident. That history helped persuade Fiji Airways to operate the Israel charter without full prepayment.

As reported by the Fiji Broadcasting Corporation, Nilesh Prasad, counsel for Fiji Airways, told the court yesterday, April 9, that the parties had several pre-trial applications before the court.

This included an application to strike out the third defendant, International Christian Embassy of Jerusalem (ICEJ).

For its part, Fiji Airways wants the court to issue a summary judgment against the ICEJ and Faith Harvest Church as the fourth defendant. Prasad says there are no “genuine issues” requiring a trial.

Fiji Airways is also seeking to have a FJD20 million (USD9.1 million) defamation counter-claim brought by ECEJ struck out. Prasad says there is no evidence of defamation, and the counter -claim is an abuse of process.

Faith Harvest opposes the application for a summary judgement, saying there are “significant factual disputes” in the airline’s claim.

Was the man who signed the charter agreement authorised to do so?

Importantly, there were argument whether one of the ICEJ associated individuals, Mikaele Mudreilagi, had the authority to act as an ICEJ representative and sign on its behalf. Mudreilagi signed the charter agreement.

Yesterday, counsel for ICEJ, Aca Rayawa, told the court that Mudrelagi was not a registered trustee and had no authority. But Prasad said the airline relied on his representations in good faith when agreeing and said the legal principle of ostensible authority applied.

However, Rayawa said that ICEJ was unaware that Mudreilagi was holding himself out as a representative (or an authorised trustee) and is referring the matter to the police. But the Fiji Airways’ counsel questioned why this had not already happened.

Prasad acknowledged the charter disruption but noted that everyone got home safely. In any event, he said the contract included a force majeure clause for unforeseeable circumstances, and the Hamas attack was such a circumstance.

Prasad also told the court that the prime minister’s office and the Ministry of Foreign Affairs were now part of the proceedings after a joinder application by Faith Harvest.

The matter will return to court on May 27 when the judge is expected to rule on the various arguments put forward by the parties.

Photo: AI-Generated.

Contact the writer: andrew@aerosouthpacific.com