An Independence Air lessor that filed a lawsuit against the carrier in January seeking to repossess a single regional jet and claim damages was demanding an $8.5 million payment by Friday - a demand the airline is refusing to meet.
In a filing with the US Securities and Exchange Commission (SEC), Independence Air parent company Flyi says the unnamed lessor has "elected to exercise additional remedies under the lease, including specifically to cause the payment of damages it claims to be due under the lease".
Flyi says the lessor sent a notice on 3 June seeking the payment of $8.5 million in liquidated damages, "on or before 10 June".
The lessor claims this payment is due to cover "unpaid basic rent plus interest" through today's date, as well as "interest rate swap breakage costs, and costs, fees and expenses claimed to have been incurred as of 31 May in connection with the termination of the lease".
Disputes
Flyi, which has returned the aircraft to the lessor, says it "disputes the amount of damages claimed to be due, including the basis for the calculation of damages as well as the actual calculations, and will not make this payment as demanded".
It adds that any damages that may be due will be "determined as part of the pending legal action".
The lawsuit filed by the lessor on 27 January was in response to Flyi's failure to pay lease rents on the aircraft when due, Fly said at the time. An Independence Air spokesman said the Bombardier CRJ200 was the only one to be leased from this particular lender.
The carrier has since reached consensual lease terminations on 24 CRJs, reducing its regional jet fleet to 58 aircraft.
In a filing with the US Securities and Exchange Commission (SEC), Independence Air parent company Flyi says the unnamed lessor has "elected to exercise additional remedies under the lease, including specifically to cause the payment of damages it claims to be due under the lease".
Flyi says the lessor sent a notice on 3 June seeking the payment of $8.5 million in liquidated damages, "on or before 10 June".
The lessor claims this payment is due to cover "unpaid basic rent plus interest" through today's date, as well as "interest rate swap breakage costs, and costs, fees and expenses claimed to have been incurred as of 31 May in connection with the termination of the lease".
Disputes
Flyi, which has returned the aircraft to the lessor, says it "disputes the amount of damages claimed to be due, including the basis for the calculation of damages as well as the actual calculations, and will not make this payment as demanded".
It adds that any damages that may be due will be "determined as part of the pending legal action".
The lawsuit filed by the lessor on 27 January was in response to Flyi's failure to pay lease rents on the aircraft when due, Fly said at the time. An Independence Air spokesman said the Bombardier CRJ200 was the only one to be leased from this particular lender.
The carrier has since reached consensual lease terminations on 24 CRJs, reducing its regional jet fleet to 58 aircraft.
Source: Flight Daily News
