Airbus to sue India's Skymark on contract breach

(MENAFN) European aerospace maker Airbus Group NV said it is suing Skymark Airlines Inc. in Britain, settling a half-year dispute over a cancelled jet order, Oman Observer reported.

India's Skymark is accused of breaching a contract, as the latter has cancelled a USD2 billion contract with for six A380 passenger jets in July after the carrier struggled to raise cash to pay the installments.

The cargo has also been seeking code-share deals with ANA Holdings Inc. and Japan Airlines Co Ltd (JAL). Airbus's legal claim against the only Japanese buyer of the A380 is a setback for Skymark's attempts to reverse its fortunes.

Skymark forecasts a net loss of USD114.6 million for the financial year ending March. For Airbus, the cancellation of the contract was a blow in its efforts to sell the A380, the world's largest airliner.