Comair demands R1.4 billion from US aircraft maker Boeing for fraud

Aeroplane maker Boeing is facing a legal battle with a South African airline that is demanding at least $1,4 billion.

The airline argues that Boeing lied about an agreement regarding the sale of eight 737 MAX planes and it seeks damages to the tune of $83 million.

According to a suit filed on Monday in the United States District Court in Seattle said, Boeing “placed profits over safety and led with a plan of deception,” but the aircraft maker is yet to comment.

Media outlets such as News24 and BusinessLIVE report that Comair said Boeing committed fraud over its failure to disclose problems with a key flight control system tied to two fatal 737 MAX crashes in 2018 and 2019 in Indonesia and Ethiopia – the crashes killed 346 people and also led to the MAX’s 20-month grounding.

“Comair operated flights for British Airways and its own brand Kulula.com until it halted operations in June,” said News24.

“The airline said Boeing refused to return $45.2 million in advance payments it made on seven MAX planes. It had paid for and received one 737 MAX.”

In a similar case, it was reported that Polish national airline PLL LOT also sued Boeing in late 2021 in Seattle on similar grounds over 737 MAX purchases and the suit is pending.

LOT asked a U.S. judge in Texas in October to declare it was a crime victim in the Boeing 737 MAX criminal case and said it has at least $250 million in damages.

A US District Judge Reed O’Connor ruled that passengers killed in two Boeing 737 MAX crashes are legal “crime victims” thus leading to LOT’s argument that it should have the same rights.

Last month, Boeing pleaded not guilty to a 737 MAX fraud conspiracy felony charge after families objected to a 2021 Justice Department deferred prosecution agreement to resolve the investigation into the plane’s flawed design.