Kuwaiti company demands Boeing to pay 336 million dollars
The Economy News - Baghdad
A Kuwaiti rental company filed a lawsuit against Boeing demanding that it pay 336 million dollars, accusing it of having unlawfully refused to return prepayments for an order that is now canceled for the purchase of 40 of its 737 MAX problems.
The lawsuit was filed yesterday, Wednesday, in the Federal Court of the State of Chicago. In it, it accused Alafco for financing the purchase and leasing of Boeing aircraft of violating the contract by retaining the payments despite the inability to deliver the planes or set an amended delivery schedule.
Alafco said it canceled the order on March 6 after Boeing failed to deliver nine aircraft on time. She added that Boeing opposed its complaint that the problems amounted to "undue delay", which would justify the return of the payments.
The Chicago-based company suspended delivery of 737 MAX planes in March 2019 when the Federal Aviation Administration prevented the plane from flying after 346 people were killed in the crashes of two such aircraft operated by Lion Air and Ethiopian Airlines.
Boeing is also facing the consequences of the Corona virus, which has forced it to cut production as a result of falling demand, liquidity problems of airline customers and logistical obstacles to aircraft delivery.
Alafco buys large commercial aircraft and leases them to airlines. Its largest owners are Kuwait Finance House, Gulf Investment Corporation and Kuwait Airways, according to the company's website.
Boeing shares closed Wednesday, down $ 1.36 at $ 134.97. Its shares have lost more than two-thirds of their value since early March 2019, before the 737 MAX was prevented from flying.