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Alaska officials and a German company say they've reached an agreement that will settle the state's lawsuit over engines in two fast ferries.
The settlement was announced Friday afternoon. The case had been set for trial next month.
Senior Assistant Attorney General Dana Burke tells KTOO-FM that the Alaska Marine Highway System will get eight new diesel engines provided by German manufacturer MTU Friedrichshafen. There will also be an option for the state to purchase two spare engines nearly at-cost.
Burke says the settlement calls for a maintenance agreement and new five-year extended warranty on the engines for the fast ferries Fairweather and Chenega. The value of the new engines was not immediately available.
Burke says MTU can deliver and install the engines - four for each ferry - beginning in the fall.
MTU's Alaska lawyer, Doug Serdahely, says both sides think this is a "very fair and very reasonable agreement."
Both sides have asked that the trial scheduled for April 8 in Juneau Superior Court be taken off the court calendar.