South African court voids SAA freighter lease extension
A special court in South Africa ruled that South African Airways' extension of a cargo aircraft lease with Flyfofa Airways was unlawful, and ordered repayment of unjustified profits.
A South African special court has ruled that South African Airways' extension of a leasing contract with Flyfofa Airways was unlawful. The contract, for a cargo aircraft, was extended by three years in 2019. No tender process was run, and the finance ministry's approval was not obtained.
The aircraft was out of service when the contract was concluded, yet South African Airways kept paying while the plane sat on the ground.
Flyfofa must now disclose the costs and revenue for the period the aircraft was parked, and repay unjustified profits plus eleven percent interest. The amount has not yet been determined.
The court also ordered that possible consequences for those responsible at South African Airways be examined.
Sources
- aerotelegraph.comSouth African Airways muss unrechtmäßige Flugzeug-Leasingverlängerung rückabwickeln