Turbulence ahead for SriLankan Airlines over lease contract?

Turbulence ahead for SriLankan Airlines over lease contract?

Turbulence ahead for SriLankan Airlines over lease contract?

Written by Lahiru Fernando

26 Mar, 2017 | 10:41 pm

An international company has filed action in London against Sri Lankan Airlines.

Why? The company happens to be the one that has leased three A330-200 aircrafts to our National Carrier and SLA has attempted to overturn the contracts with the said company -saying the were “not legally binding”.

The Sunday Times report

According to The Sunday Times, the claimant–SASOF II Aviation Ireland Ltd– is seeking a declaration that SLA is contractually bound by the relevant extension agreements. It is also seeking an order that all rental payments falling under the extended leases are paid in accordance with the contracts; and costs.

The aircrafts in question are three older A330-200s first leased by SriLankan in 2010. The original agreements were due to expire in January and February 2017.

The paper goes on to say that the CEO of Sri Lankan Suren Ratwatte extended the leases in 2016 despite a SriLankan board decision to do so only if three other planes were given on dry lease to Pakistan International Airlines.

With the agreement with PIA falling short SriLankan had written to SASOF II giving notice that it will return the three A330-200s at the end of the original leases, ignoring the extension agreements.

SASOF 2 had replied saying that purported notice is rejected and that the intended action is a breach of contract.

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