Kuwaiti Firm Sues Boeing Over Terminated Order; Company To Relieve 10% Civil Aviation Workers

ALAFCO Aviation Lease and Finance, Kuwaiti-based leading firm, sued Boeing Co. BA on Wednesday for $336 million over a called off Boeing 737 Max order, according to a Reuters report.

What Happened

The Kuwaiti firm has filed a complaint in Chicago federal court stating that Boeing is in denial of returning an advance payment that the former had made for 40 Boeing 737 Max Jetliners order, CNBC reported. The order stood cancelled on March 6 after a delivery failure of nine aircrafts.

The aircraft manufacturer has not provided any details.

Other Canceled Airline Orders

Avolon, an aircraft leasing company, has also terminated its 737 Max aircraft order of 75 planes while China Development Bank applied for withdrawing its 29 aircraft order, according to a CNA report. Norwegian Air's 92 Max planes and five 787 plane order also stands in ambiguity.

Boeing To Slash Workforce, Seeks Executive Personnel Changes

Boeing Wednesday is seeking to shrink its civil aviation unit by 10%, according to an AFP report. This affects 7,000 workers at the 737 Max manufacturing unit. Boeing has also offered voluntary layoffs programs.

The lay-off comes prior to the company getting full federal support from the U.S. Treasury.

In a separate development, Boeing is turning to bring Mark Jenks, head of its 737 program, back in order to develop better manufacturing practices across all commercial aircraft programs, overcome deferred deliveries and solve quality lapses, Bloomberg reported as stated by an internal memo.

Price Action

Boeing shares closed 1% lower Wednesday's trading session.

Image by Albert Jaime Casanova from Pixabay