On Tuesday, in a statement Kuwaiti aircraft leasing company Alafco stated, it has decided to purchase fewer aircraft from Boeing following an agreement with Boeing to end its legal claim over a cancelled 737 MAX order.
Alafco had sued Boeing for $336 million accusing it of refusing to return advance payments on a cancelled order for 40 737 MAX planes.
Following this agreement, the Kuwaiti lessor will now purchase 20 aircraft from Boeing, instead of the earlier 40. Additional details of the agreement could not be disclosed due to confidentiality clauses, said Alafco.
Alafco said it was “looking forward to a long-lasting and mutually beneficial relationship with Boeing.”
In march 2019, Boeing had suspended deliveries of the narrow-body 737 MAX following its grounding by the Federal Aviation Administration after 346 people died in crashes of two 737 MAX planes operated by Lion Air and Ethiopian Airlines.
The crashes cost Boeing more than $19 billion; it was forced to halt production and its supply chain went for a toss. A criminal and congressional investigations on Boeing are still ongoing.