19 Dec 2005

Air Nauru's only plane seized after failure to repay loan

7:23 am on 19 December 2005

Nauru no longer has an air link to the outside world after a court ruling in Melbourne resulted in the seizure of Air Nauru's only aircraft.

The AAP news agency says the Australian High Court's decision means Nauru's only commercial passenger jet was due to be surrendered in Melbourne yesterday to the U-S government.

The U-S has claimed ownership of the plane because of Nauru's failure to make loan payments on the jet.

Passengers in several Pacific island countries due to travel on Air Nauru's regular service to Australia this weekend were told the flight had been cancelled.