BOC Aviation, ILFC win civil suits against AirAsia X

Troubled long-haul, low-cost carrier AirAsia X has lost civil suits mounted by two lessors over lease debts for six aircraft. The carrier disclosed on 20 November that it was served with the judgement pertaining to legal action taken by BOC Aviation and ILFC, now owned by AerCap. AirAsia X and its indirect wholly-owned subsidiary AAX Leasing Two were ordered to pay BOC Aviation around $23.4m in unpaid leases, as well as GBP75,000 as cost for the claims. The two parties also have to pay the lessor an undisclosed “post-judgement interest” relating to the $23.4m claim. These pertain to the lease of four aircraft, details of which were not disclosed by the carrier. With ILFC, the court ruled that AirAsia X, as well two other subsidiaries AAX Leasing Four and AAX Mauritius, were to pay GBP6.6m in claims to the lessor. These relate to two other aircraft. With both court orders, AirAsia X states that there “will be a cash outflow equal to the amount of the said order”, but stressed that there was no operational impact. It adds that it is seeking legal advice about the orders, in light of its proposed debt restructuring exercise, and will provide any further updates. BOC Aviation sued AirAsia X in late August, relating to a breach of obligations under lease agreements. The lessor also alleged that the carrier had breached its obligations under four guarantees related to the lease agreements.<br/>