COPENHAGEN, March 23 (Reuters) - Boeing lost a lawsuit against Denmark on Friday which related to the Danish government's decision to buy Lockheed Martin's F-35 Lightning II combat jets in preference to Boeing's F/A 18 Super Hornets.

Boeing had taken Denmark to court over a lack of access to documents used in the government's decision to buy the Lockheed Martin jets.

"The court has found that the authorities' decisions on refusal of access to the documents are legal and valid," Copenhagen's city court said in a summary of the verdict on its website on Friday.

Boeing said it would issue a statement later on Friday.

After Denmark decided to buy 27 of Lockheed Martin's new warplanes in 2016, Boeing complained that the evaluation process for the planes competing for the order had been "flawed" and demanded access to the documents in the case.

Denmark's defence ministry had denied Boeing access because the U.S. company had not specified which documents it wanted to see, and that it would too large a task to find all documents since preparations for the order began in 2005. (Reporting by Teis Jensen. Editing by Jane Merriman) </s> FILE PHOTO: Boeing's logo is seen during Japan Aerospace 2016 air show in Tokyo, Japan, October 12, 2016. REUTERS/Kim Kyung-Hoon

COPENHAGEN (Reuters) - Boeing (BA.N) lost a lawsuit against Denmark on Friday which related to the Danish government’s decision to buy Lockheed Martin’s (LMT.N) F-35 Lightning II combat jets in preference to Boeing’s F/A 18 Super Hornets.

Boeing had taken Denmark to court over a lack of access to documents used in the government’s decision to buy the Lockheed Martin jets.

“The court has found that the authorities’ decisions on refusal of access to the documents are legal and valid,” Copenhagen’s city court said in a summary of the verdict on its website on Friday.

Boeing said it was disappointed by the decision and would now review it and consider how to proceed.

After Denmark decided to buy 27 of Lockheed Martin’s new warplanes in 2016, Boeing complained that the evaluation process for the planes competing for the order had been “flawed” and demanded access to the documents in the case.

“Boeing initiated this legal action to gain a better understanding of the evaluation process, in which we believe the Ministry made a number of critical errors and omissions in its evaluation,” Boeing said in a statement on Friday.

Denmark’s defence ministry had denied Boeing access because the U.S. company had not specified which documents it wanted to see, and that it would too large a task to find all documents since preparations for the order began in 2005. </s> Aircraft giant Boeing will not appeal a ruling by the U.S. International Trade Commission that allows its Canadian rival Bombardier to sell its newest commercial jets without heavy duties.

Boeing launched a trade case with the independent International Trade Commission last April, arguing that governments in Canada and Britain subsidized development of Bombardier's C Series commercial jets and allowed the Montreal-based company to sell it at unfairly low prices.

But in a surprise decision in January, the ITC voted unanimously in favour of Bombardier, saying Chicago-based Boeing didn't suffer harm from prospective imports of C Series planes.

That decision eliminated nearly 300 per cent in duties imposed by the U.S. Department of Commerce.

A Boeing spokesperson confirmed the decision not to appeal Thursday night, but declined to elaborate.

Last month, the Canadian government said Boeing was approved to participate in an upcoming competition to replace Canada's CF-18s, but the company hadn't announced a decision on whether it will actually bid.

Public Services and Procurement Canada said Boeing, which makes the Super Hornet jet, is one of five companies approved as potential bidders in the multibillion-dollar competition to deliver 88 new fighter jets. </s> MOSCOW (UrduPoint News / Sputnik - 27th August, 2019) The Russian leasing company - Avia Capital Services - filed a lawsuit against the Boeing aircraft manufacturer to break the contract on deliveries of 35 Boeing 737 Max jets as these types of planes were worldwide grounded over security concerns.

The Russian firm, which is a subsidiary of the Russian Rostec state corporation, said that the two deadly plane crashes, involving Boeing 737 Max jets, had happened because of the "negligent actions and decisions of Boeing" both in designing the aircraft and "withholding critical information" from the US aviation safety authorities, the Financial Times newspaper reported.

The lawsuit was reportedly filed to the Cook County circuit court in Chicago. The Russian company accuses Boeing of intentionally hiding sensitive safety information about the aircraft so that the jets were purchased by customers.

Avia Capital Services says it has given Boeing a cash deposit of $35 million as part of the order and asks the money to be returned with interest along with $75 million in lost profits.

The total sum demanded by the company under the lawsuit amounts to $115 million.

Two Boeing 737 MAX planes have crashed in less than a year: one in Indonesia in October 2018 and another in Ethiopia in March. In the wake of the latest crash, aviation authorities and carriers around the world have either grounded all 737 MAX series aircraft, or closed their airspace to them.

The investigations into the incidents are underway but experts believe that a new automated stall-prevention system, called MCAS, could be behind the crashes. MCAS commands automatically push down the jet's nose in case of a critical angle of attack. However, when the information coming from sensors is wrong, such actions of the security system may pose a danger to the plane as MCAS commands may overpower pilots' attempts to pull up the nose of the jet. According to investigators, pilots of the crashed Ethiopian Airlines jet needed more than four minutes to realize that incorrect data from sensors urged MCAS to push the nose down in a situation when there was no need in that. </s> BERLIN (Reuters) - Pentagon officials briefed German military on the Lockheed Martin Corp F-35 fighter jet this week but Berlin said no procurement decisions have been taken.

 Germany, which is looking to replace its aging Tornado fighter jets, is due to decide in mid-2018 about whether to start a new fighter development program or buy an existing fighter. 

 A German Defence Ministry spokesman said the decision will hinge largely on assessments of how long the Tornados can stay in use.

 "The F-35 is one of many options we are exploring," the spokesman said.

 Any move to buy a U.S. warplane could run into political resistance in Germany, which has strong labor unions, and given a big push by Europe to develop its own military equipment.

 The German Air Force asked the U.S. military in May for a classified briefing on the F-35 fighter jet as part of an "in-depth evaluation of market available solutions."

 Germany's interest in the F-35 took some European defense industry officials by surprise, given a big push by European aerospace giant Airbus and other European defense companies to develop a next-generation European fighter.

 Lockheed, which is already building the F-35 fighter for several other NATO allies - the United States, Britain, Italy, Turkey, Norway, the Netherlands and Denmark - also plans to provide the German defense ministry with information about opportunities for German industry to participate in the F-35 program, a source familiar with the matter told Reuters.

 This week's briefings took place in Bonn, Germany, on Monday and Tuesday and involved a German one-star general, as well as working groups looking at specific weapons requirements and capabilities, according to another source briefed on the matter.

 "This meeting is consistent with the standard Foreign Military Sales process where we explain the path to F-35 acquisition and provide a top-level F-35 capabilities brief," F-35 program office spokesman Joe DellaVedova said. 

 The German military plans to send Washington a formal "letter of request" for information about the F-35 and Boeing Co's F-15 and F/A-18E/F fighter jets later this summer, the ministry spokesman said.

 It will also gather information from Airbus about its work on a next-generation weapons system, he added.

 Experts also see the F-35 as the leading contender in a Belgian fighter competition that includes the Eurofighter Typhoon and the Dassault Aviation Rafale. Sweden's SAAB and Boeing have withdrawn from that tender.

 

 (Reporting by Andrea Shalal; Editing by Susan Fenton) </s> The government of Canada on Friday declared an end to its feud with Boeing after the US aircraft maker dropped its trade complaint against Canadian aerospace manufacturer Bombardier.

Foreign Minister Chrystia Freeland said in a statement the Boeing decision "represents a positive development in the long-standing relationship between Canada and Boeing."

Boeing said earlier that it would not appeal the US International Trade Commission's ruling in January rejecting Boeing's claim that rival Bombardier was dumping its new CSeries jetliners in the United States.

The accusation had resulted in tariffs of 300 percent being imposed on US imports of the aircraft, but the ITC decision that Boeing was not harmed by the sale of the 100- to 150-seat passenger aircraft to Delta Air Lines at a loss, effectively quashed the anti-dumping duties.

"The government of Canada is pleased that Boeing has decided not to appeal the unanimous ruling by the ITC," Freeland commented.

"This is good news for Canada's innovative aerospace industry and the thousands of people who depend on well-paying aerospace jobs on both sides of the border."

Also, Freeland added, "this ends litigation on the issue."

Ottawa had responded in December to the trade complaint against its top aerospace firm by scrapping a deal to buy 18 Boeing Super Hornets worth more than $5 billion, and barring it from bidding on a contract to replace Canada's entire fighter jet fleet.

Following the ITC decision, Ottawa softened its position and said it would allow Boeing to submit a bid.

Boeing would be one of five manufacturers (along with Dassault, Airbus, Saab and Lockheed Martin) invited to submit proposals in spring 2019 for an order of 88 advanced fighter jets, which are to be delivered starting in 2025. </s> FILE – In this April 10, 2019, file photo a Boeing 737 MAX 8 airplane being built for Spain-based Air Europa rolls toward takeoff before a test flight at Boeing Field in Seattle. A Russian aircraft leasing company that ordered 35 Boeing Max jets is suing the U.S. aircraft maker, accusing it of hiding defects in the plane that has been grounded after two deadly crashes. The Miami-based lawyer for the leasing company said Tuesday, Aug. 27, it is the first lawsuit filed against Boeing by a Max customer. (AP Photo/Ted S. Warren, File)

MOSCOW (AP) — A Russian aircraft leasing company that ordered 35 Boeing Max jets is suing the U.S. aircraft maker and seeking to cancel the deal, accusing Boeing of hiding defects in the plane that was grounded after two deadly crashes.

The Miami-based lawyer for the leasing company said Tuesday it is the first lawsuit filed against Boeing by a Max customer. He said he is talking to other companies about joining the case.

The lawsuit on behalf of Avia Capital Services was filed Monday in state court in Illinois, where Boeing is based. It claims that Boeing committed fraud and breach of contract and was negligent in how it designed and built the plane and convinced the Federal Aviation Administration to approve it.

Avia could become the first customer to cancel a signed agreement to buy the Max as a result of the crashes and grounding. In July, Saudi Arabian discount airline flyadeal backed out of a commitment to order 50 Max jets, but unlike Avia, flyadeal never signed a firm order.

Nearly 400 Max jets that were being flown by airlines around the world have been grounded since March, shortly after the second of two crashes that together killed 346 people.

Avia ordered Max jets in 2012 and was originally set to begin receiving them this year, but the deliveries were delayed. The company is seeking damages of at least $115 million, which attorney Steven Marks said included a $40 million deposit and $75 million in lost profit, plus additional money for punitive damages.

Marks, who also represents families of passengers who were killed in the two crashes, said he has talked to “several” other Max customers and expects some to join the Avia lawsuit. None are U.S. companies, he said.

Executives for Southwest, American and United have stood by Boeing through the Max ordeal.

Boeing lost $3 billion in the second quarter after taking a $4.9 billion after-tax charge to cover future costs of compensating airlines and other Max customers. Boeing is working to upgrade flight-control software implicated in the crashes and expects the plane to be cleared to fly in November. </s> The U.S. Commerce Department on Tuesday slapped preliminary anti-subsidy duties on CSeries jets made by Bombardier Inc after rival Boeing Co charged that the aircraft were unfairly subsidized by Canada.

The department said it imposed a 219.63 percent countervailing duty on Bombardier's new commercial jets after it made a preliminary finding of subsidization. Boeing has complained the 110-to-130 seat aircraft were dumped below cost in the U.S. market last year while benefiting from unfair subsidies.

An April 2016 order for 75 CSeries jets from Delta Air Lines stemmed from the same harmful sales practices European rival Airbus SE employed to win business in the 1990s, according to Boeing.

The Commerce Department's penalty against Bombardier will only take effect if the U.S. International Trade Commission (ITC) rules in Boeing's favor in a final decision expected in 2018.

The CSeries starts at $79.5 million, according to list prices, but carriers usually receive discounts of about 50 percent.

Subsidy-related duties would add considerably to the cost of the jets within the U.S. market and prices could rise even further if Commerce announces additional anti-dumping duties in a ruling expected early next month.

Bombardier, which has repeatedly denied Boeing's allegations, was not immediately available for comment.

Boeing said in a statement: "This dispute has nothing to do with limiting innovation or competition, which we welcome. Rather, it has everything to do with maintaining a level playing field and ensuring that aerospace companies abide by trade agreements."

Duties could chill U.S. sales of the fuel-efficient CSeries, raising concerns over future orders and jobs in Canada and the United Kingdom. Bombardier is the largest manufacturing employer in Northern Ireland.

Canadian Prime Minister Justin Trudeau recently put his government's planned purchase of Boeing Super Hornet fighter jets on hold because of the trade dispute, saying it could not "do business with a company that's busy trying to sue us and put our aerospace workers out of business."

Boeing has argued that the military sale to the Canadian government and its petition againstBombardier are not linked. But the U.S. jetmaker has said the CSeries would not exist without hundreds of millions of dollars in launch aid from the governments of Canada and Britain, or a $2.5 billion equity infusion from the province of Quebec and its largest pension fund in 2015.

To win its case before the ITC, Boeing still faces the challenge of proving it was harmed byBombardier's sales practices, despite not using one of its own jets to compete for the Delta order, Dan Pearson, a senior fellow at the libertarian Cato Institute think tank in Washington, said before Tuesday's announcement.

"This (ITC case) cannot be a slam dunk," said Pearson, a former ITC chairman. "I'm having a hard time figuring out how Boeing was harmed by this."

Canada has pushed to settle the dispute. But one industry source said Boeing, which could gain some leverage with the Commerce Department's initial decision in its favor, sees the alleged CSeries dumping as a long-term threat to its civilian airliner business. (Reporting by Allison Lampert in Montreal and Alwyn Scott in New York; Editing by Tom Brown and Peter Cooney) </s> WASHINGTON (Reuters) - The U.S. Department of Defense resumed accepting F-35 jet deliveries from Lockheed Martin Corp (LMT.N) last week after reaching an agreement on covering the costs to fix a production error, the Pentagon told Reuters on Monday.

FILE PHOTO - Lockheed Martin's logo is seen during Japan Aerospace 2016 air show in Tokyo, Japan on October 12, 2016. REUTERS/Kim Kyung-Hoon/File Photo

Terms of the agreement were not disclosed. The cost of the fix was $119 million, people familiar with the situation had previously told Reuters.

The Pentagon had stopped accepting the jets on March 29, the Pentagon’s F-35 Joint Program office told Reuters in a statement. The dispute was over responsibility for paying to fix corrosion related to an error discovered in the second half of 2017.

The military, U.S. allies that own F-35s and Lockheed Martin are making the necessary repairs to all aircraft, the Pentagon’s office in charge of the fighter program said in the statement.

When the Pentagon stopped taking delivery of F-35s, foreign customers also were affected. At least two foreign governments, Australia and Norway, had their jets caught up in the acceptance pause.

The majority of aircraft will be repaired within two years, the statement said.

Lockheed shares added to gains after the news and closed up 2 percent at $317.71.

Last year, the Pentagon stopped accepting F-35s for 30 daysafter discovering corrosion where panels were fastened to theairframe, an issue that affected more than 200 of the stealthyjets.

During routine maintenance at Hill Air Force Base in Utah last year, the Air Force detected “corrosion exceeding technical limits” where the carbon fiber exterior panel is fastened to the aluminum airframe.

Once a fix had been devised, the deliveries resumed andLockheed hit its target aircraft delivery numbers for 2017.

A lack of protective coating at the fastening point thatwould have prevented corrosion was identified as the primaryproblem, the Pentagon said at the time.

The fastening issue on the F-35 fleet did not affect flights, nor was it a safety concern, the Pentagon said last year.

On Monday, Lockheed said an agreement had been reached with the Pentagon, adding that it expected to hit its F-35 delivery target of 91 aircraft for 2018.

The pause was the latest production issue that has arisen in the Pentagon’s most expensive weapons program. In 2016, a fix for insulation problems in the fuel tanks and lines of the jets caused a slowdown in deliveries.
Boeing loses a case in Copenhagen city court against the Danish Ministry of Defense over access to documents used in the purchase of Lockheed Martin F-35 Lightning II fighters in preference over Boeing F/A 18 Super Hornets. Boeing argued the evaluation process used in the purchase had been "flawed".