Saudi Arabian Airlines is looking at a lawsuit over unpaid rent and maintenance dues over 50 Airbus aircraft in its fleet from its lessor.
The claim, filed by ALIF Segregated Portfolio Company, seeks to reclaim $460 million from Saudi Arabian Airlines, according to London’s High Court documents, as reported by Reuters. In addition, the lessor is looking to recoup damages and costs from the Saudi Arabian flag carrier. Through the lessor, it acquired 50 Airbus aircraft, namely 30 Airbus A320neo and 20 Airbus A330 jets.
The company claims that after Saudi Arabian Airlines had failed to negotiate its payments, the airline stopped paying basic rent and conducted unauthorized engine and part swaps.
“We are currently in discussions with the lessor to resolve contractual differences, and we believe that common sense will prevail in the end,” the Jeddah-based carrier told Reuters.
ALIF and Saudi Arabian Airlines came to an agreement for the former to finance the 50 aircraft during the Paris Air Show in 2015. At the time, the order was valued at $8.2 billion at list prices and was the record-breaking financing deal secured via sharia-compliant financing.
ALIF is the subsidiary of International Airfinance Corporation (IAFC), a Dubai-based aircraft leasing company that purchased the 50 aforementioned aircraft.
