Russian aircraft lessor sues Boeing for the 737 MAX trouble

Moscow, Russia - The Russian leasing company Avia Capital Services sues Boeing for the troubles around 737 MAXs ordered by the company.

The Russian company asks for free cancellation of its order for 35 737 MAX jets and hundreds of millions as compensation due to its financial losses.

According to the Russian lessor, Boeing allegedly sold the 737 MAXs under false pretenses by deliberately withholding important information about airworthiness.

According to the British newspaper Financial Times, this is the first lawsuit of a MAX customer against the American aircraft manufacturer.

Boeing recently reserved $ 4.9 billion to compensate the financial damages of its customers that ordered or acquired the 737 MAX jets.

But according to Avia Capital Services, this amount is not even close to the losses of the 737 MAX customers. The Russian company says other companies would also feel that way.

The lessor now demands the court order Boeing to cancel its existing 737 MAX orders free of charge and pay compensation for its lost profits.

Avia also seeks compensation for punitive damages in addition to the amount of the actual damage suffered.

Punitive damages are assessed to punish the respondent for outrageous practices and deter the respondent and others from engaging in similar practices in the future, which form the basis of the lawsuit.

Avia Capital Services claims the crashes in Indonesia and Ethiopia are the result of negligence by Boeing.

The Russian leasing company has 35 Boeing 737 MAX 8 in its order book. They are intended for delivery to various airlines in Russia, including the Aeroflot subsidiary Pobeda Airlines. The delivery of the Avia's MAX 8s is postponed to 2022 due to the current production rate of the aircraft.

Boeing reduced its monthly production from 52 to 42 aircraft and halted deliveries of the 737 MAX series jets after worldwide flight ban for the type.

Avia says it is open to a settlement with Boeing.