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Rostec's subsidiary ready for negotiations on compensation under contract with Boeing

Rostec subsidiary confirmed filing action against Boeing to terminate 737 MAX aircraft contract

Boeing 737 MAX 8 airplane AP Photo/Ted S. Warren

Boeing 737 MAX 8 airplane

© AP Photo/Ted S. Warren

MOSCOW, August 27. /TASS/. Avia Capital Services (ACS), a subsidiary of the Russian state corporation Rostec, is ready for negotiations with US Boeing on compensation of costs due to postponement of deliveries of 35 Boeing 737 MAX 8 passenger jets, a company’s spokesperson told TASS on Tuesday.

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Russia’s Pobeda airline expects Boeing 737 MAX 8 jets in spring 2020 at earliest — source

"Initially fixed supply dates for airliners were regrettably postponed for known reasons for three years, from October 2019 to March 2022. We at the same time made upfront payments and sustain losses. If the management of Boeing shows goodwill, we are ready to sit down to talk and find a mutually beneficial off-court decision on compensation of sustained losses," the spokesperson said.

Airplanes were purchased for Russian airlines and were offered to Pobeda air carrier in particular, the spokesperson added.

Financial Times reported earlier today that Avia Capital Services filed a lawsuit to the District Court of the Cook Country, Chicago, against Boeing, alleging that the corporation deliberately concealed information about airworthiness of Boeing 737 MAX 8 aircraft. Flights of these jets are currently suspended worldwide.

According to the newspaper, ACS ordered 35 jets of this series prior to suspension of 737 MAX 8 flights and now insists on cancellation of the deal.

Avia Capital Services (ACS) confirmed filing the claim against US Boeing to terminate a contract on supply of 35 Boeing 737 MAX passenger jets, a company’s spokesperson told TASS on Tuesday.

"We confirm," the spokesperson stated.

On March 10, the Boeing 737 MAX 8 of the Ethiopian Airlines crashed in Ethiopia, killing 157 people. The crash of a similar model aircraft occurred on October 29 last year in Indonesia, then 189 people died. After the crash in Ethiopia, many countries, including Russia, the US, and the EU states, suspended the operation of the Boeing 737 MAX for safety reasons. The Boeing company expressed confidence in the safety of the aircraft of this series, but stated that it understands the decision of regulators to suspend flights.

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