Middle East Airlines (MEA) has agreed a revised deal with Singapore Aircraft Leasing (SALE) over the five-year lease of three Airbus A310-200s. The new agreement reduces the price of the lease from $39 million to $34 million. Agreement has been reached as investigations by the Lebanese public prosecutor into alleged irregularities over the original deal continue.
The Banque du Liban, which holds the majority of MEA shares, says that it has instructed the airline to withdraw legal proceedings against SALE over the original leasing deal. The new arrangement allows MEA to purchase the aircraft at the end of the lease.
Six MEA directors resigned in December, and a new board is to be installed this month. Acting president Khattar Hadathi believes that the airline's 1997 result will show a $50 million loss, partly because of the investigation.
Source: Flight International
