Americas

Centurion faces grounding over unpaid fuel bills

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Centurion faces grounding over unpaid fuel bills

Centurion Air Cargo is facing potential grounding following reports in US media stating that the carrier's fuel supplier, Chemoil Corp., has filed several lawsuits against it over US$12.9million in outstanding debt.

Chemoil has filed a total of eleven lawsuits extending to each aircraft - eight MD-11(F)s and three B747-400(F)s - in both the Centurion and its subsidiary SkyLease Cargo’s fleet.

Following Centurion's announcement in April that it would sell-off its fleet of MD-11(F)s in favour of more B747-400(F)s, Chemoil filed mechanic liens to prevent the sale until the debt was paid.

Chemoil has now exerted further pressure on Centurion by filing a new challenge that will force the airlines to auction their aircraft unless the bill, which varies from US$345,477 to US$2.2million for each aircraft, is paid.