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.
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