Saab Aircraft Leasing has repossessed Kaiken Lineas Aereas' fleet of Saab 340 turboprops after the Argentinian regional carrier failed to make payments for almost a year.
In the first action of its kind by the former Swedish manufacturer, all three of Kaiken's Saab 340As were seized at Rio Grande Airport. The carrier owes Saab more than $2 million in back payments and is in the process of being sued. Kaiken stopped monthly lease payments at the start of the year. Kaiken previously had to return two de Havilland Dash 7s after similar financial difficulties.
Kaiken owner Oscar Valls confirms that Saab 340s are leaving the fleet, but would offer no explanation. He adds that the aircraft will be replaced by two ATR 42s due to arrive on 4 November on 34-month leases. The only other aircraft in Kaiken's fleet are three smaller Fairchild Metro IIs.
Source: Flight International
