Air Tindi suing federal government over damaged plane

Air Tindi has launched a $10.4-million lawsuit against the federal government after one of its planes was damaged during a military training flight. The federal government denies liability.

According to court documents filed with the Federal Court, the Northwest Territories-based airline leased three King Air 350 aircraft to the Department of National Defence in 2021.

On January 31, 2022, a Royal Canadian Air Force pilot and two first officers flew one of the planes from the Canadian Forces Base in Trenton, Ontario to the Thunder Bay International Airport as part of a tactical training mission.

On approach in Thunder Bay, the pilot decided to disengage autopilot to complete the approach manually, states a flight safety investigation report completed by the Department of National Defence. When the pilot moved both power levels to idle with the intent of landing, the plane developed a left yaw, causing the left wing to drop.

While the monitoring pilot took over control and initiated an overshoot, it did not work. The tip of the plane’s left wing hit the runway and the aircraft ended up in the field off the runway. The plane sustained “very serious damage” from the accident, while the pilot had a minor injury.

An investigation into the crash found that the plane was documented as serviceable before the flight and the crew did not notice any issues before the power levels were brought to idle.

An analysis determined a part within the propeller speed governing system had failed to function properly, causing the left propeller to windmill, which the report said most likely caused the accident.

In court documents, both the federal government and Air Tindi said they discussed compensation for the transportation and storage of the damaged plane while the accident was investigated. They also discussed replacing the aircraft.

The federal government said it paid Air Tindi $317,266.36 for storage, insurance and lease costs it incurred between February 1 and August 1. In September 2022, the federal government told Air Tindi it would not pay to replace the aircraft, nor for further material management costs.

Air Tindi launched a suit for further compensation in May 2023.

What each side says

In its statement of claim, Air Tindi argues the federal government is liable for the damage to the plane, accusing Ottawa of breach of contract and negligence.

Air Tindi claims the federal government gave it approval to look into purchasing a new plane and told the airline it was developing a process to procure a replacement. Air Tindi said it hired a broker to appraise two potential aircraft and hired experts to perform inspections as a result.

Air Tindi said it has also lost revenue due to the damage to the aircraft. The airline said it had planned to use the plane as part of its contract to provide air ambulance services in the North.

“The Crown’s failure to address the damage caused by DND has not only negatively impacted Air Tindi’s operations but has also deprived northern communities of a resource that would otherwise be available to support an essential service,” the airline’s claim states.

Air Tindi is claiming more than $6 million in damages to replace or repair the damaged aircraft, more than $1 million in damages for material management costs, nearly $2.1 million for lost revenue and profit, and nearly $1.2 million for Harmonized Sales Tax. It said those are the damages as of April 1, 2023 and it continues to incur costs and lose revenue and profit, which it plans to add to the claim.

The federal government, in a statement of defence, said while initial discussions had been held with Air Tindi about replacing the damaged plane, Ottawa never admitted fault for the crash or liability for the damage, nor agreed to pay for a replacement.

“The accident was caused by a mechanical failure,” the federal government’s statement reads.

“Therefore, Canada did not breach the contract when it did not compensate Air Tindi for the replacement of the C-GEAS aircraft.

“The aircrew were qualified for the mission and responded reasonably and properly to the incident at the Thunder Bay International Airport.”

The federal government said Air Tindi was contractually responsible for the safety of the aircraft. If anyone was negligent for the accident, the statement of defence argues, it was Air Tindi, which the federal government asserts had extended the life of the left propeller’s speed governing assembly by 10 percent. On the day of the crash, it had 82 hours left in its life.

The federal government added that Air Tindi’s air maintenance manager did not identify any issues ahead of the flight.

The federal government denied liability for the costs and losses Air Tindi said it has incurred, describing the airline’s claims as “excessive, exaggerated and/or remote.”