Alafco Aviation Lease & Finance is asking defunct Wataniya Airways to pay the company about $70 million for the remaining period of an aircraft leasing deal.
Wataniya, the Kuwaiti carrier that began flying in 2009, shut down on March 16 citing its precarious financial situation and regional instability.
"Alafco had signed a deal to lease three aircraft to Wataniya Airways from 2009 to 2017," Alafco said in a statement to the Kuwait stock Exchange today. "Wataniya Airways ceasing its operations is regarded as a breach to the deal."
Alafco is willing to negotiate with Wataniya Airways for a "fair" compensation for the damage it incurred due to Wataniya halting its operations, according to the statement.