Comair Limited has filed a lawsuit in federal court against Boeing for fraud and breach of contract concerning the purchase of eight 737 MAX aircraft. The airline is seeking damages in excess of $83 million, which it suffered as a result of Boeing's wrongful conduct.
Comair entered into a Purchase Agreement with Boeing for the sale of eight 737 MAX aircraft for a total aircraft base price of more than $98 million on September 19, 2013. Delivery of Comair's first 737 MAX would take place in February 2019.
Comair said that it has paid Boeing over $45 million in advanced payments on seven 737 MAX aircraft and full payment on the one 737 MAX aircraft it received. Boeing has refused to return the advanced deposits on the seven aircraft it never delivered to Comair. Comair suffered additional damages as a result of the grounding of its 737 MAX for a total loss of more than $83 million.
Comair in its lawsuit claims that Boeing retorted to shortcuts, misrepresentations and concealed information to bring the 737 MAX to market quickly. The airline also added that the engine of 737 MAX was large and could not fit under 737’s low wings, to obtain adequate ground clearance, Boeing moved the engines up and forward causing the aircraft's nose to abnormally pitch up
The airline further added that Boeing tried to resolve the pitch-problem with Maneuvering Characteristics Augmentation System ("MCAS"), which automatically applied downward stabilizer trim. MCAS did not work safely.
Going ahead, the airline has accused Boeing of concealing this information from customers and FAA in a rush to maximize profits. Further Boeing avoided any requirement that pilots be trained on MCAS.
Thereafter following the two fatal crashes of Lion Air and Ethiopian Air, the aircraft was grounded worldwide.