Mexico's New State Airline Sued in $800 Million Contract Dispute [BNN Bloomberg (Canada)]
Boeing Company (The) (BA)
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Source: BNN Bloomberg
SAT Aero Holdings Inc., which was formerly known as Petrus Aero Holdings, filed the lawsuit Wednesday in federal court in New York seeking damages in the full amount of its $838.5 million contract, plus $2.4 million in costs. President Andres Manuel Lopez Obrador, known as AMLO, launched the new Mexicana airline in December after buying the name from a carrier that stopped flying in 2010. The government has marketed Mexicana as a new budget airline set to compete with local carriers Volaris and Viva Aerobus. The airline recorded 160 flights in January, according to government statistics. AMLO said last year the government was looking to initially lease 10 Boeing 737 jets. But Mexicana now leases at least part of its aircraft from another regional airline, TAR Aerolineas. Read More: AMLO's Mexicana Airline Has No Jets or Schedule Ahead of Launch SAT was hired by the Mexican Ministry of Defense to provide services including procuring aircraft and insurance, recruiting and train
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