AMCK, a leasing company owned by Carlyle, warns that granting an injunction to Frontier Airlines would establish a detrimental precedent in the aircraft leasing sector.
AMCK and its affiliates are opposing an injunction sought by Frontier Airlines to prevent the lessor from seizing approximately 10% of the airline’s fleet. Frontier claims that this action would cause irreparable harm to its business.
Frontier Airlines currently operates a fleet of 127 jets, serving over 100 destinations.
The defendants argue that granting Frontier’s injunction would set a harmful precedent for the leasing industry, limiting the ability of aircraft lessors to exercise their rights and remedies under lease agreements. They believe this could result in more expensive leases, with the costs ultimately passed on to customers. The defendants claim to have already incurred significant costs and lost profits due to Frontier’s delay and obstruction tactics.
Frontier Airlines initiated a lawsuit against AMCK last year, seeking damages related to the acquisition of AMCK Aviation by Carlyle Aviation Partners. Frontier argued that their consent was required for any change of ownership involving the 15 jets leased from AMCK. However, AMCK and Carlyle have denied this claim.
In an unrelated matter, Frontier had previously sued AMCK in 2020 regarding leases on six Airbus jets, claiming $53 million in damages. Frontier alleged that AMCK was deliberately weakened to avoid potential judgment against the Irish unit. However, a judge recently granted summary judgment against Frontier in that case, with only a breach of contract claim remaining for trial.
AMCK and Carlyle maintain that Frontier has failed to comply with contractual obligations under aircraft leases and a cooperation agreement. Frontier has demanded security for litigation claims, such as a first lien on leased aircraft or a letter of credit. However, the defendants argue that Frontier has no such rights under the leases or other agreements.
Additionally, the defendants claim that Frontier has rejected an offer of guarantee from a related entity.
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