Saudi Arabian Airlines sued for violating lease agreement

Flag carrier Saudi Arabia Airlines (Saudia) has been reportedly sued by Dubai-based financial services firm Alif Segregated Portfolio Company regarding 50 leased Airbus aircraft.

The lawsuit has been filed in London’s High Court, which told Reuters that the defendant is yet to acknowledge the claim.

At the 2015 Paris Air Show, the lease agreements between Alif and Saudia for 30 A320neo and 20 A330-300 planes were announced by Airbus.

Based on the list price at that time, the deal was worth $8.2bn.

In a court filing seen by the news agency, Alif may seek nearly $460m in unpaid rent and maintenance cost. The lessor is also asking for damages and other costs.

Meanwhile, the carrier told Reuters that it will comply with its ‘contractual commitments’ and defend itself against the charges that are ‘inaccurate’.

It also confirmed that legal proceedings did not start.

Saudia was quoted as saying: “We are currently in discussions with the lessor to resolve contractual differences, and we believe that common sense will prevail in the end.”

The airline is among several carriers worldwide that have been severely impacted due to the Covid-19 pandemic.

In March, the carrier suspended all flights to and from the UAE, Kuwait, Bahrain, Lebanon, Egypt, Syria, Iraq, Italy, and Korea.

It resumed flights but with several restrictions in place.