A Dubai-based Emirati company has dealt a new blow to Saudi Arabia, Abu Dhabi’s strongest ally in the Gulf region.
British court documents showed that a Dubai-based financial services company filed a lawsuit against Saudi Arabian Airlines before the High Court in London, on charges of violating agreements to lease 50 Airbus aircraft.
According to the documents, Alif Segregated Portfolio, which specializes in leasing aircraft, has filed a complaint against the Jeddah-based transport company, demanding at least $ 460 million in unpaid rent and maintenance costs.
The company accuses the Saudi side of not paying the basic rent after seeking to reduce its payments, and engaging in “unauthorized and undeclared engine and parts swaps,” according to the documents.
The deal between “Alif” and Saudi Arabia dates back to the year 2015, and the value of the fifty aircraft, which represent a third of the Saudi Airlines fleet, was about $ 8.2 billion when the deal was announced.
Saudi Arabia has been suffering since the Coronavirus pandemic caused great harm to the aviation sector, especially after it suspended flights, and banned Umrah and Hajj last March.
In June, the International Air Transport Association (IATA) expected that the Coronavirus crisis would lead to airlines incurring losses estimated at $ 84 billion and cut revenues in half, which was described as “the worst economic crisis in the history of the sector.” The union also forecast that revenue would drop to $ 419 billion from $ 838 billion last year.
These were the details of the news Saudi Arabia is receiving a painful blow from its most powerful... for this day. We hope that we have succeeded by giving you the full details and information. To follow all our news, you can subscribe to the alerts system or to one of our different systems to provide you with all that is new.
It is also worth noting that the original news has been published and is available at saudi24news and the editorial team at AlKhaleej Today has confirmed it and it has been modified, and it may have been completely transferred or quoted from it and you can read and follow this news from its main source.