A Russian aircraft leasing company has filed a lawsuit against Boeing over an order of 737 Max jets, marking the first legal action against the aerospace company by a customer over safety issues.

Avia Capital Services, a subsidiary of state-owned Russian conglomerate Rostec, is suing Boeing to cancel an order of 35 of the 737 Max jets, saying the company of failed to disclose information about the jets' 'defects'.

Boeing's 737 Max jets have been grounded globally since March after two of the model planes crashed in separate incidents killing a combined 346 people.

In October 2018 Lion Air Flight 610 crashed into the Java Sea 12 minutes after take off, killing 189 passengers and crew on board. In March 2019 Ethiopian Airlines Flight 302 crashed six minutes after take off, killing all 157 on board.

The planes crashed following a suspected malfunction with the 737 Max jet's flight handling system.

Avia Capital Services, claims two deadly crashes were due to the 'negligent actions and decisions of Boeing', according to Fox Business.

In the lawsuit Avia claims Boeing 'intentionally' failed to disclose information about the airworthiness of the jet.

The Russian company wants to cancel their order for 35 of the 'defective' Boeing 737 Max 8 Jets and is suing Boeing for breach of contract.

Avia told Russian state-owned news agency Tass that Boeing had pushed back the delivery date of the jets from October to March next year and the company is willing to sit down for talks with Boeing and settle out of court.

They're seeking $115million in compensatory damages and several times that amount in punitive damages, according to the Financial Times. </s> MOSCOW (AP) — 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 today 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.

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 Atty. Steven Marks said included a $40 million deposit and $75 million in lost profit, plus punitive damages. </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> A Russian aircraft leasing company confirmed Tuesday that it has filed the first US lawsuit to cancel an order for 35 Boeing 737 MAX jets.

Avia Capital Services (ACS), a subsidiary of state-owned Russian conglomerate Rostec, confirmed to AFP a report of the lawsuit in the Financial Times, which said it was the first civil action brought by a customer against the US aerospace giant over the 737 MAX.

The FT reported that ACS had filed the suit in Chicago claiming that Boeing had "intentionally" failed to disclose information about the airworthiness of the jet to its customers.

It accuses Boeing of negligence in selling the "defective" aircraft. ACS is seeking $115 million in compensatory damages, and several times that amount in punitive damages, the FT reported.

Rostec said it was ready to help mediate in the dispute.

"Rostec and Boeing are solid partners, with a time-proven and stable relationship. The company is closely following the situation with Avia Capital Services and is ready to help the parties come to a compromise," Rostec executive director Oleg Yevtushenko said in a statement sent to AFP.

"We hope that the issues raised can be resolved through dialogue."

Boeing's 737 MAX was grounded indefinitely after two crashes killed a total of 346 people, one involving Indonesia's Lion Air and the other involving an Ethiopian Airlines jet.

Boeing has developed a software upgrade to the 737 MAX after problems with a flight handling system were tied to the crashes.

But the jet -- the company's best-selling aircraft -- has still not been cleared by regulators for liftoff.

Boeing reported a loss of $2.9 billion for the second quarter of this year, its biggest loss ever as the 737 MAX crisis dragged on.

That was in large part a result of a $4.9 billion charge taken by the company as it negotiates compensation deals with customers. </s> MOSCOW -- 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 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.

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 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> MOSCOW — 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.

A spokesman for Boeing declined to comment, citing pending litigation.

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.

The Associated Press </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> (MOSCOW) — A Russian aircraft leasing company says it has filed a lawsuit against Boeing over an order of 35 Boeing 737 Max jets, but that it’s open to a settlement.

Avia Capital Services told the state-owned Tass news agency Tuesday that it has brought the lawsuit against Boeing in the United States, accusing it of failing to disclose the information about the jets’ “defects.”

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 told Tass that Boeing had pushed back the delivery date from October to March next year. It said it is willing to sit down for talks with Boeing and settle out of court. </s> related media assets (image or videos) available. Click to see the gallery.

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A unit of Russian conglomerate Rostec said on Tuesday it was ready for an out-of-court settlement with Boeing over its order for 35 Boeing 737 MAX jets, a spokesman for Rostec's subsidiary Avia Capital Service told Reuters.

MOSCOW: A unit of Russian conglomerate Rostec said on Tuesday it was ready for an out-of-court settlement with Boeing over its order for 35 Boeing 737 MAX jets, a spokesman for Rostec's subsidiary Avia Capital Service told Reuters.

Boeing MAX 737 jets have been grounded worldwide and airlines are cancelling multimillion contracts following crashes in October and March that killed 346 people.

Earlier on Tuesday, Rostec said its unit had filed a lawsuit in the United States to cancel its order for the 35 MAX jets. The Financial Times, which first reported the move, said Avia Capital Service gave Boeing a cash deposit of US$35 million.

A spokesman for Avia Capital Service told Reuters that delivery of the jets was first scheduled for October 2019 but was moved to March 2022. The Rostec unit had paid Boeing a deposit and was suffering losses from non-delivery, he said.

"If Boeing executives show a good will, we are ready to hold talks and find a mutually-beneficial out-of-court settlement for compensation of the losses we have suffered," he said.

He added that the jets were ordered for a number of Russian air companies, including domestic low-cost firm Pobeda, a unit of the state carrier Aeroflot .

Russia is mainly using Boeing and Airbus jets for passenger flights, with a number of domestic airlines also adding Russian-made regional Sukhoi Superjet aircraft to their fleets.

The Rostec subsidiary now wants the deposit to be returned by Boeing with interest, along with US$75 million in "lost profit" and about US$115 million in compensatory damages, plus "several times the amount" in punitive damages, the FT said.

Rostec declined to provide further details about the lawsuit.
Russian aircraft leasing firm Avia Capital Services, which has ordered 35 Boeing 737 MAX aircraft, sues Boeing in an Illinois court in the first legal action taken by a 737 MAX customer in the wake of the groundings. Avia seek damages and a cancellation of the order, claiming Boeing were fraudulent, breached their contract with Avia, and negligently introduced design flaws to the aircraft and made negligent representations to the Federal Aviation Authority seeking the plane's certification. With nearly 400 jets grounded worldwide since March, lawyers representing Avia say they are discussing the possibility of joining the litigation with other companies.