Barrier Aviation has since had to stand down all its staff and says it is at risk of financial collapse.
Court orders grounded airline to mediation
Published: 02:15:22 AM, Fri 15 February 2013 UTC
The Federal Court has ordered the Civil Aviation Safety Authority (CASA) and grounded far north Queensland-based airline Barrier Aviation to go to a mediator.
CASA suspended all of the airline's operations in December last year amid serious safety concerns.
Barrier Aviation has since had to stand down all its staff and says it is at risk of financial collapse.
A CASA spokesman says mediation talks are expected to be held ahead of another Federal Court directions hearing next Friday.
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