Comair Sues Boeing for Fraud Tied to Sale of 737 MAX Aircraft
February 07 2023 - 12:15PM
Dow Jones News
By Dean Seal
Comair Ltd. is suing Boeing Co. for fraud and breach of contract
related to its purchase of eight 737 MAX aircraft nearly a decade
ago.
The South Africa-based airline is seeking more than $83 million
in damages as part of its federal lawsuit claiming Boeing sold the
jets without disclosing known issues with their automated
flight-control system, known as MCAS.
MCAS has been widely blamed for two deadly plane crashes in 2018
and 2019 that led to 737 MAX jets being grounded worldwide for
years.
Comair alleges that Boeing concealed the MCAS issues and falsely
indicated that the pilot skill needed to fly a 737 MAX was
"interchangeable" with the training and skill required to pilot its
existing 737 NG aircraft.
Relying on those misrepresentations, Comair purchased eight 737
MAX jets in 2013 for a base price of more than $98 million, the
company said.
Comair said it has since made more than $45 million in advanced
payments on seven of the aircraft and full payment on the one jet
it has received so far. Boeing has refused to return the advance
deposits on the seven jets that remain undelivered, according to
the lawsuit.
Boeing didn't immediately respond to a request for comment on
the suit.
Boeing has already reached a $2.5 billion settlement with
federal prosecutors related to the 737 MAX and is facing civil
litigation from relatives of victims from the 2018 and 2019
crashes.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
February 07, 2023 12:00 ET (17:00 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
Boeing (NYSE:BA)
Historical Stock Chart
From Jul 2024 to Aug 2024
Boeing (NYSE:BA)
Historical Stock Chart
From Aug 2023 to Aug 2024