Tuesday, 27 Oct 2020 10:58 PM MYT
Alif Segregated Portfolio Company, which specialises in shariah-compliant aircraft leasing, has filed a complaint against the Jeddah-based carrier, also known as Saudia, in which it could seek at least US$460 million in unpaid rent and maintenance cost.London’s High Court told Reuters the claim has been filed but not yet acknowledged by the defendant.
The deal between Alif and Saudia, announced by Airbus at the 2015 Paris Airshow, was hailed as the largest aviation deal to be secured via Islamic financing. The 50 aircraft, which account for a third of Saudia’s fleet, were worth around US$8.2 billion when the deal was announced. Saudia has been struggling since the coronavirus pandemic brought global aviation to its knees. Saudi Arabia in March suspended flights and banned Muslims abroad from performing pilgrimages in the kingdom which normally attract millions of foreign visitors.