SAS redeploys A350 despite legal dispute

SAS Scandinavian Airlines has redeployed a A350-900 on long haul routes from Denmark to China, the US, and Japan, despite the aircraft being at the centre of a legal dispute with the aircraft's Japanese owner. ADS-D data shows SAS re-activated the previously mothballed Airbus widebody on March 30 on routes between Copenhagen Kastrup and Shanghai Pudong, Los Angeles International, Newark, and by April 5, to Tokyo Haneda. As reported, the aircraft's Japanese owner, JPA No. 199 Co. Ltd, has filed a complaint with the US Bankruptcy Court for the Southern District of New York, where SAS is currently under Chapter 11 bankruptcy protection. The Japanese lessor has accused SAS and the airline's Receiver of underhanded dealings by negotiating a finance lease sale through a third party, the London branch of the Japanese-owned bank MUFG Ltd, which has a lien on the aircraft. The Japanese firm alleged that this was derogating its owner's rights and procedures under the Cape Town Convention. SAS's Receiver responded they had the authority under English law to manage the aircraft as the owner's agent. They said SAS did not intend to buy the aircraft but was keen on a payment-by-cycle (PBC) lease arrangement, which the Receivers approved on March 14 and filed the necessary stipulation with the US bankruptcy court.<br/>