Hyderabad-based Logistics Company plans to sue Airbus

New Delhi: What does a $35 billion order to supply 179 tankers for the US Air Force have to do with a Hyderabad-based Logistics company? Plenty, says Flyington Freighters which is trying to establish itself as India's only long-haul cargo airline.
The Hyderabad-based firm accused Toulouse-based Airbus industries of using its order for 12 A-330-200 cargo aircraft to pitch for the USAF tanker contract and then delay its deliveries by three years.
EADS North America first bagged the contract in early 2008 proposing a tanker variant of the A-330. The orders were cancelled that year and fresh tenders were floated.
According to a senior Flyington official, Airbus was depending on its proposed production line in Mobile, Alabama to supply aircraft to the Hyderabad firm. The new production facility however did not materialise owing to the rebooting of the USAF deal. Flyington now plans to sue Airbus for breach of contract.
Flyington was to get the first orders in July 2008 but now says deliveries have been pushed to late 2011.
01/10/10 Sandeep Unnithan/India Today

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Categories: Cargo Oct 2010, Foreign Oct 2010