Russia’s Rostec agreeable to out-of-court-settlement for non-delivery of Boeing 737 MAX jets

Avia Capital Service is now demanding that Boeing return the deposit amount along with interest which totals to $75 million in “lost profit” and around $115 million in compensatory damages, plus “several times the amount” in punitive damages.

On Tuesday, according to a statement from Avia Capital Service, a unit of Russian conglomerate Rostec, the company is agreeable for an out-of-court settlement with Boeing over its order for 35 Boeing 737 MAX jets.

Boeing has grounded the MAX 737 jets and has cancelled contracts worth millions following the fatal crashes in October 2018 and March 2019 that resulted in the death of 346 people.

According to a report from the Financial Times, Rostec had filed a lawsuit in the United States to cancel its order for the 35 Boeing MAX airplanes; Avia Capital Service had given Boeing an advance of $35 million.

According to a spokesman for Avia Capital Service, delivery of the jets was initially scheduled for October 2019 but has since been moved to March 2022. Avia Capital Service stated, it had paid Boeing a deposit and was suffering losses from non-delivery.

“If Boeing executives show a good will, we are ready to hold talks and find a mutually-beneficial out-of-court settlement for compensation of the losses we have suffered,” said the spokesman while adding that the jets were ordered for a number of Russian air companies, including domestic low-cost firm Pobeda, a unit of the state carrier Aeroflot.

Rostec declined to provide further details about the lawsuit.

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