COVID Era Airplane Leasing
Dispute Results in $48 Million
Damages Award Based on Texts
by
Matthew Russell Lee, Patreon Book
Substack
SDNY
COURTHOUSE,
July 2 – A breach of contract
lawsuit springing from the
first months of the COVID-19
pandemic resulted in an award
of more than $48 million on
July 1, 2024 by U.S. District
Court for Southern District of
New York Judge Louis L.
Stanton.
Frontier
Airlines was buying planes
from Airbus and in turn
reselling them to AMCK, to
lease them back for
approximately $250,000 a
month. When COVID disrupted
airline travel, the companies'
executives had a series of
phone calls and emails that
resulted in the litigation.
While AMCK would later insist
that they had not agreed to
and then extended a deferral
on a month-to-month basis, and
therefor were justified in
declaring Frontier in default,
Frontier's executive's
testimony and contemporaneous
text messages won the day, at
least before Judge
Stanton.
The $48
million award is supplemented
by attorney's fees and 9%
interest. The Second Circuit
is just one building to the
south - but on experience,
Inner City Press notes that
Judge Stanton's decisions have
a way of being upheld...
The case is
Frontier Airlines, Inc. v.
AMCK Aviation Holdings Ireland
Limited, et al., 20-cv-9713
(Stanton)
***
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