Updated on August 04, 2020
Kuwaiti lessor Alafco reaches settlement with Boeing over 737 MAX dispute
- Kuwaiti lessor will now buy 20 planes from Boeing, instead of 40, with new delivery date
DUBAI: Kuwaiti aircraft leasing company Alafco will buy fewer planes from Boeing after reaching an agreement to end its legal claim over a canceled 737 MAX order, it said on Tuesday.
Alafco is suing the US planemaker for $336 million over allegations it wrongly refused to return advance payments on a canceled order for 40 of its troubled 737 MAX planes.
The Kuwaiti lessor will now buy 20 planes from Boeing, instead of 40, with new delivery dates, it said in an exchange statement.
Additional details of the deal could not be disclosed due to confidentiality clauses, it said.
Alafco said it was “looking forward to a long-lasting and mutually beneficial relationship with Boeing.”
Alafco and Boeing did not immediately respond to emailed requests for comment.
Boeing suspended deliveries of its 737 MAX narrow-body jet in March last year, when the Federal Aviation Administration grounded the plane after the deaths of 346 people in crashes involving two 737 MAX planes operated by Lion Air and Ethiopian Airlines. .
The crisis over the grounding of the once best-selling 737 MAX has cost the US planemaker more than $19 billion, cut production and hampered its supply chain, with criminal and congressional investigations still in progress.
Alafco’s owners include Kuwait Finance House, Gulf Investment Corporation and state-owned airline Kuwait Airways, according to its website.