Kuwaiti lessor Alafco reaches agreement with Boeing over 737 MAX dispute

Alafco earlier sued Boeing for $336 million over accusations it wrongly refused to return advance payments on a canceled order for 40 of its troubled 737 MAX planes. (Reuters)
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Updated 04 August 2020

Kuwaiti lessor Alafco reaches agreement with Boeing over 737 MAX dispute

  • Kuwaiti lessor will now buy 20 aircraft from Boeing, instead of 40, with new delivery date

DUBAI: Kuwaiti aircraft leasing company Alafco will buy fewer aircraft from Boeing after reaching an agreement to end its legal claim over a canceled 737 MAX order, it said on Tuesday.
Alafco was suing the US planemaker for $336 million over accusations it wrongly refused to return advance payments on a canceled order for 40 of its troubled 737 MAX planes.
The Kuwaiti lessor will now buy 20 aircraft from Boeing, instead of 40, with new delivery dates, it said in a bourse filing.
Additional details of the agreement could not be disclosed due to confidentiality clauses, it said.
Alafco said it was “looking forward to a long-lasting and mutually beneficial relationship with Boeing.”
Alafco and Boeing did not immediately respond to emailed requests for comment.
Boeing suspended deliveries of its narrow-body 737 MAX jet in March last year, when the Federal Aviation Administration grounded the aircraft after the deaths of 346 people in crashes of two 737 MAX planes operated by Lion Air and Ethiopian Airlines.
The crisis over the grounding of the once top-selling 737 MAX has cost the US planemaker more than $19 billion, slashed production and hobbled its supply chain, with criminal and congressional investigations still ongoing.
Alafco’s owners include Kuwait Finance House, Gulf Investment Corporation and state airline Kuwait Airways, according to its website.


Oman Air to resume flights to a dozen countries by October

Updated 20 min 32 sec ago

Oman Air to resume flights to a dozen countries by October

  • There will be two scheduled flights per week to Dubai and Doha
  • Those travelling to Muscat were encouraged to visit the website of the Omani Civil Aviation Authority

DUBAI: Muscat-based Oman Air will resume flights to 18 cities in 12 countries, including the UAE and Qatar by Oct. 1, national daily Times of Oman has reported.

There will be two scheduled flights per week to Dubai and Doha, the airline announced on Twitter.

The move comes as international air travel gradually returns to normal after months of shutdown due to the coronavirus pandemic.

“Masks are required when guests are on board the aircraft and in Oman’s airports. (Physical) distancing is maintained while guests board and exit the aircraft, which are carefully cleaned after each flight and at the end of every day,” the company assured in a statement, adding in-flight service has also been modified to ensure safety of passengers.

Those travelling to Muscat were encouraged to visit the website of the Omani Civil Aviation Authority, as well as relevant sources from countries of destinations, to check COVID-19-related guidelines and ensure a smooth journey.