Jet Airways sued by Hong Kong fuel supplier over unpaid US$1.1 million bill
- Grounded airline taken to High Court by Sinopec (Hong Kong) Aviation Company
- Money related to delivery of fuel from March 1 to 22
A Hong Kong-based fuel supplier has sued the grounded Jet Airways over a US$1.1 million bill it said has not been paid, despite repeated demands.
Documents filed to the High Court on Thursday showed India’s oldest private carrier had agreed in April 2018 to buy jet fuel from Sinopec (Hong Kong) Aviation Company.
Sinopec began fuel delivery on March 1, but the agreement fell through in less than a month as the supplier’s lawyers claimed Jet Airways had defaulted on payment and ignored demand letters to settle the bill.
“Up until now, the defendant has not disputed the sums and has not yet repaid the outstanding debts or any part thereof,” the plaintiff’s lawyers wrote.
The legal action came to light on the same day as the deadline for investors to submit bids to bail out Jet Airways, which has grounded all flights since April 17 because of a lack of funding.
The embattled airline had operated 123 aircraft and more than 600 daily flights, staffed by about 16,000 employees, at its peak.
But it had slowly fallen apart under a US$1.2 billion (HK$9.4 million) debt mountain, and dwindling cash to pay everyday bills.
Jet Airways ‘unable to pay for fuel’ shuts all flights indefinitely
In the most recent case, the disputed bill covers fuel supplied from March 1 to 22.
Sinopec issued the first invoice on March 15, demanding a payment of US$845,956.37 by March 30 for fuel supplied from March 1 to 15.
A second invoice was issued on March 28, demanding US$257,726.92 by April 12 for the supply from March 16 to 22.
“Despite repeated requests and demands, the defendant continues in its failure and/or refusal to pay the said sum of US$1,103,683.29 or any part thereof,” the writ said.
Sinopec is now demanding full payment plus late interest, to be calculated, and legal costs.
