Lessor Appeals Against $49 Million Award to Frontier Airlines

AMCK Aviation, now part of Carlyle Aviation Partners, has filed an appeal against a June 2024 US court ruling that awarded Frontier Airlines USD 48.6 million over a terminated sale and leaseback agreement for six Airbus A320-200 aircraft.

The appeal was lodged on July 16, 2024, with the Second Circuit US Court of Appeals. The case involves AMCK Aviation Holdings Ireland Limited, along with its affiliates Accipiter Holding and Vermillion Aviation Holdings.

Frontier Airlines initially filed a lawsuit in the Southern District Court of New York in 2020, seeking USD 53 million in damages. The legal dispute centers around a 2019 agreement in which AMCK was to purchase and lease back six A320s to Frontier. Amid the Covid-19 pandemic, Frontier requested a temporary deferral of rent payments. While informal agreements were reached, no formal written contract was signed. AMCK terminated the agreement in May 2020, citing non-payment, which resulted in Frontier incurring increased costs with alternative lessors.

The trial focused on whether AMCK had waived its right to timely payments. The court concluded that AMCK had breached the framework agreement by wrongfully terminating it. AMCK’s appeal seeks to overturn or reduce the damages awarded to Frontier Airlines.

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com