Kuwaiti firm sues Boeing to recoup US$336m paid in advance for aircraft
US aircraft manufacturer Boeing Co is being sued by a Kuwaiti aviation leasing company for the return of US$336 million that it paid in advance for forty 737 Max planes
US aircraft manufacturer Boeing Co is being sued by a Kuwaiti aviation leasing company for the return of US$336 million that it paid in advance for forty 737 Max planes. Boeing halted production of its ill-fated jetliner after 346 people died when two Max aircraft crashed five months apart.
Alafco Aviation Lease and Finance Co faults Boeing for failing to deliver the planes on time and said it scrapped the entire order.
Boeing was supposed to start delivering the Max planes to Alafco in March 2019, according to the lawsuit filed in a federal court in Chicago. However, that was the month of the second Max crash, which is when Boeing suspended delivery of the aircraft, reported Bloomberg.
Alafco didn't say how much it agreed to pay for the planes in the lawsuit. But the list price on 20 737 Max 8S planes the company ordered in 2017 was US$2.2 billion at the time.
The failure to deliver the planes, 'and the circumstances in which they have occurred, substantially impair the value of the purchase agreement as a whole,' Alafco said in the lawsuit. 'Accordingly, Alafco has cancelled its 737 Max aircraft orders and requested return of all advance payments.'