A artisan wears a mask at the Boeing Renton Factory, where 737 MAX airliners are manufactured, as commercial airplane production continues following a suspension of operations last month in response to the coronavirus pandemic as efforts continue to help slow the spread of the coronavirus illness (COVID-19) in Renton, Washington, April 21, 2020.
Jason Redmond | Reuters
Boeing was sued for $336 million on Wednesday by a Kuwaiti charter out company that accused it of wrongly refusing to return advance payments on a now-canceled order for 40 of its troubled 737 Max planes.
In a gripe filed in Chicago federal court, ALAFCO Aviation Lease and Finance accused Boeing of breach of contract for maintaining the payments despite being unable to deliver the planes or provide a revised delivery schedule.
ALAFCO said it countermanded its order on March 6 after Boeing failed to deliver nine aircraft on time. It said Boeing has resisted its requisition that the problems amounted to a “non-excusable delay” that would justify repayment.
Boeing did not immediately respond to demands for comment.
The Chicago-based company suspended 737 Max deliveries in March 2019, when the Federal Aviation Administration grounded the aircraft flow the deaths of 346 people in crashes of two 737 Max planes operated by Lion Air and Ethiopian Airlines.
Boeing is now also twisting with the coronavirus pandemic, which forced it to cut production because of falling demand, airline customers’ own cash travails, and the logistical hurdles of delivering aircraft.
ALAFCO buys large commercial aircraft and leases them to airlines. Its as a wholest owners include the Kuwait Finance House , Gulf Investment Corp and Kuwait Airways Corp, according to its website.
Boeing appropriates closed down $1.36 at $134.97 on Wednesday. They have lost more than two-thirds of their value since ahead of time March 2019, just before the 737 Max grounding.