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Wells Fargo sues AA for not returning leased planes on time

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Wells Fargo sues AA for not returning leased planes on time

Unread post by bimjim » Fri Jun 22, 2018

https://www.dallasnews.com/business/air ... lanes-time

Wells Fargo sues American Airlines for not returning leased planes on time
Aidan Quigley, Business News Intern
19 June, 2018

Wells Fargo filed a lawsuit Monday against American Airlines alleging the airline violated leasing contracts by not returning three planes on time.

The bank leased American three Boeing aircraft during the fall of 2017 which were returned 49, 45 and two days late, according to the lawsuit.

While American had asked for, and was granted, extensions on two of the leases, the airline held on to the aircraft past the agreed-upon dates without asking for additional extensions. In December 2017, the bank demanded $883,334 for the holdover period and an additional $100,000 in contractor fees which were caused by the delay. American refused to pay.

The lawsuit, filed in the Southern District of New York, says that American told the bank that it was retaining the aircraft to bring them into compliance with the return conditions specified in the leases.
Each of the aircraft has a market value of more than $15 million and was leased to the airline for a monthly rate of $250,000.

Wells Fargo is acting as the owner trustee in the case. It does not own or operate the planes but oversees the trust where the planes are held.

American is reviewing the complaint and would not comment further, an airline spokesman said. Wells Fargo also did not have additional comment.

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