Kuwaiti lessor Alafco files suit against Boeing

Kuwaiti aircraft lessor Alafco has issued a suit against Boeing for the failure to return payment on undelivered 737 MAX 8 aircraft, according to website AINonline. The filing claims rights to return US$336 million in advance payments for the first 10 of 40 aircraft on order, the first delivery of which Boeing had set for March 2019.

Although Boeing notified Alafco of delays with the delivery of the aircraft, it has not given the lessor an estimate of the revised schedule.

The filing indicates that Alafco contacted Boeing terminating the aircraft scheduled for delivery in March on a non-excusable delay. Boeing countered in a letter dated 3 December that it “respectfully disagrees” with Alafco’s assertion of non-excusable delay rights and refused to return the payment. On 6 March 2020, Alafco cancelled the orders for all 40 aircraft after Boeing failed to state an anticipated delivery of the initial 10 MAX aircraft.

Alafco claims a provision in the contract that limits Boeing liability in the event of an excusable delay does not apply, stating that responsibility for the grounding of the airliner is the fault of the manufacturer.