Posted on: 29 August 2019 by Glenn Sands
Avia Capital Services, a Russian aircraft leasing company has issued a breach of contract lawsuit against Boeing concerning its order for 35 737 AMX aircraft according to AINonline. The case filed on 26 August with the Cook County district court near Boeing’s Chicago headquarters. Avia is seeking the return of its $35 million deposit with interest. It is also seeking $75 million in compensation for profits that it says will be lost because of severe disruption in the wake of two accidents involving the 737 MAX, plus significant damages.
Miami-based aviation law firm Podhurst Orseck, which is representing Avia, is arguing that Boeing knew the steps necessary to safely bring the new 737 MAX into commercial service. In view of the significant aerodynamic changes. It claims that Boeing should have taken the MAX through a completely new type certification process that would have resulted in the need for type-specific training for pilots.
“We’re seeking damages for fraud and misrepresentation because Boeing intentionally misrepresented that it was going to provide a properly certified and airworthy aircraft,” Steven Marks a partner at Podhurst Orseck stated.
Marks predicts that he expects more 737 MAX customers to file similar lawsuits in the coming weeks. It’s expected that the Cook County court may start hearing the case in around eight to 12 months.
The Russian leasing company, Avia had expected to start raking delivery of its MAX aircraft in October, but this as now been pushed back to at least March 2022.