New Zealand-based lessor Airwork Group has sued Olympus Airways (Athens) for around USD74 million in alleged payment arrears at Ireland’s High Court through its Dublin-based unit Airwork Ireland Limited, The Irish Times reported. Olympus Airways denies the claim.

Airwork Ireland and another subsidiary Airwork Fixed Wing Limited, based in New Zealand, claim Olympus Airways owes them sums relating to a series of contracts for the lease of two Airbus and two Boeing aircraft. According to court documents seen by the newspaper, the amounts include monthly payments, maintenance reserves, and security costs for the four aircraft.

The lessor alleged that Olympus “wrongfully and in breach of contract” defaulted on these agreements and has asked the court to order the Greek carrier to pay USD60 million plus ongoing interest for the monthly lease payments arising from the contracts’ termination in December 2021, USD12.8 million in damages, and USD1.1 million for default interest.

As previously reported, Airwork Ireland also argued that the airline did not comply with its MRO obligations for two of the aircraft, abandoning one of the Airbus jets with a maintenance firm based at Antalya. That has exposed the lessor to the cost of repairs as well as the risk that the Turkish authorities will dispose of the aircraft, the lessor said.

Among other matters, the lessor also claimed that Olympus Airways is liable to it for EUR5.4 million euros (USD5.6 million) through Airwork’s subscription in 2019 to bonds then amounting to EUR3.5 million (USD3.6 million).

Justice Denis McDonald admitted the case to the High Court’s fast-track commercial division on November 14. Lawyers acting for Olympus Airways have denied the claims and also plan to object to the jurisdiction of the Irish court to hear the case.

According to the ch-aviation fleets ownership module, Airwork Ireland leased A321-200s SX-ABQ (now VP-COJ) (msn 1060) and SX-ACP (now VP-COD) (msn 1015) to Olympus Airways from February 2017 to May 31, and from June 2018 to February 10, 2022, respectively. VP-COJ is currently stored at Antalya, VP-COD at Alexandria Borg el Arab.

It also leased B757-200(PCF) SX-AMJ (msn 25294) to Olympus from December 2019 until September 18, 2021. Now registered as EC-NYM, it is in storage at Tucson International. And Airwork Holdings leased B757-200(PCF) SX-APX (msn 25297) to the Greek carrier from June 2020 until February 13, 2022. Now registered as N225NZ, it is stored at Goodyear. Olympus Airways retired its two B757 freighters in February amid plans to restructure its fleet around passenger and cargo B737-800s.

In June, a London court ruled that Olympus should pay another lessor and financier, FTAI Aviation, more than USD4.5 million in outstanding rent and damages for an A319-100 leased in 2016.

Airwork Holdings did not immediately respond to ch-aviation’s requests for comment. Olympus Airways, however, said the following: “Olympus Airways is the holder of a Greek AOC and operates within the governing rules and regulations. The allegations made or suggested by Airworks are wrong, baseless and misleading. They appear to be based upon incorrect information and designed to discredit Olympus Airways in an ongoing matter which is unhelpful.”