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Fly540 signs consent with ACL Aviation; Royal Jordanian won't be affected by B787 delays

31-Aug-2010

Fly540, subsidiary of Lonrho (+4.6%), and UK-based ACL Aviation Support Ltd (ACL) signed joint consent on 24-Aug-2010 and withdrew court proceedings over the breach of a purchase lease agreement of two aircraft.

ACL had instructed a local auctioneer to attach the aircraft and sell them by public auction or private treaty to recover USD2 million for the breach. On 19-Jun-2007, Fly540 entered into an agreement with ACL to purchase or lease a Pratt & Whitney Dash 8 aircraft, and agreed the contract would be governed and construed in accordance with English law.

See related CAPA profile: Aircraft leasing and finance

Qatar Airways stated its B787 delivery plans have not been affected by the latest delay, with Etihad Airways similarly stating its deliveries will remain unaffected. An Etihad spokesperson said: "Etihad is not scheduled to take delivery of the first two of its B787 Dreamliner aircraft until 2014. Etihad has been in close contact with Boeing, and the manufacturer is confident there will be no impact to our scheduled deliveries." Etihad Airways has 35 firm orders for the aircraft plus 25 options, while Qatar Airways has 30 B787s on order with 30 options.

Similarly, Royal Jordanian (-1.9%) CEO, Hussein Dabbas, commented that it would not be affected by the delay, stating: “We were assured the delivery of our airplanes will not be affected." Royal Jordanian, which is scheduled to take delivery of its first B787 in 2013, added that it is “not discussing compensation right now” with Boeing.

See related CAPA profile: B787

Selected African and Middle Eastern airlines share price movements (% change): 30-Aug-2010


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