ARC NEWS
GTLK vehicle sues Qatar Airways for $93m claiming unpaid rent
October 18, 2024
A company linked to defunct lessor GTLK Europe is suing Qatar Airways in the UK for $93 million in rent and other costs relating to two leased Airbus A330s. STLC Europe Thirteen Leasing is taking legal action in connection with MSNs 792 and 813, which were leased to Qatar Airways in November 2019, court documents show. In the particulars-of-claim form, STLC Europe Thirteen Leasing accuses the Middle Eastern airline of having failed to pay rent on the widebodies since April 2022. The entity argues that – "contrary to suggestions" allegedly made by Qatar Airways in notices dated 2 November 2023 and in pre-action correspondence – there has been no loss of quiet enjoyment under the leases, and nor do sanctions applying to Russian state lessor GTLK or the entity's direct parent GTLK Europe (which is in liquidation) "relieve the defendant from performance". STLC Europe Thirteen Leasing adds that – following the expiry of MSN 792's lease term on 30 November 2023 and MSN 813's on 31 December 2023 – it is entitled to redelivery of the jets and the payment of end-of-lease compensation. Overall, the entity is claiming rent, end-of-lease compensation and indemnity payments totalling "at least" $93 million, which, it adds, continues to accrue in the amount of at least $1.19 million per month. Fleets data lists MSN 792 as a 2006-vintage A330 originally ordered by Qatar Airways. It was subsequently sold to Aergo Capital and leased back by the Doha-based carrier in 2018. STLC Europe Thirteen Leasing bought the jet in 2019. MSN 813 was likewise delivered to Qatar Airways, in 2007; sold to Aergo, in 2018; and purchased from the Irish lessor by STLC Europe Thirteen Leasing, in 2019.


Air Baltic upsizes bond issuance
October 18, 2024
Latvian flag carrier Air Baltic has upsized its €340 million ($360 million) bond issuance by an additional €40 million. The notes, which are due to mature in 2029, carry a coupon of 14.5%. Air Baltic says the issuance aligns with its strategic financial plan, enabling it to "strengthen its financial position and provide financial flexibility as the company advances its growth ambitions" and moves towards a potential initial public offering. The Riga-based airline has declined to provide further details of the bond issuance. Settlement of the bonds is scheduled to take place on 24 October, and the bonds will be listed on the Euronext Dublin stock exchange.


DOT fines Lufthansa for discriminating against Jewish passengers
October 17, 2024
The US Department of Transportation has issued a $4 million penalty against German carrier Lufthansa for violating the civil rights of 128 Jewish passengers by prohibiting them from boarding a May 2022 connecting flight from Frankfurt to Budapest. The DOT says it received more than 40 discrimination complaints from Jewish passengers who were ticketed to fly in May 2022 from New York JFK to Budapest, with a stop in Frankfurt. It adds: "Based on the alleged misconduct of some passengers, Lufthansa prohibited 128 Jewish passengers – most of whom wore distinctive garb typically worn by Orthodox Jewish men – from boarding their connecting flight in Germany. Despite many of the passengers not knowing each other nor traveling together, passengers interviewed by DOT investigators stated that Lufthansa treated them all as if they were a single group and denied them boarding for the alleged misbehaviour of a few." A hold was placed on more than 100 passengers' tickets with a final destination of Budapest, preventing them from boarding the next scheduled flight leaving Frankfurt. All of those passengers were Jewish, the DOT says. "No one should face discrimination when they travel, and [this] action sends a clear message to the airline industry that we are prepared to investigate and take action whenever passengers' civil rights are violated," states US Transportation secretary Pete Buttigieg. The DOT notes that the penalty is the largest it has ever issued against an airline for civil-rights violations. Lufthansa says that it has "fully co-operated" with the DOT during its review process following the May 2022 incident. "We remain focused on the many efforts which have been initiated including, partnering with American Jewish Committee, a highly respected and globally recognised advocacy organisation and thought leader," the carrier says. It adds: "Through our ongoing collaboration, we have curated a first-of-its kind training programme in the airline industry for our managers and employees to address antisemitism and discrimination... As the first airline to adopt the International Holocaust Remembrance Alliance working definition of antisemitism, Lufthansa will continue to foster a thoughtful dialogue with Jewish communities and organisations around the world."


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