Australian airline Rex is facing a $7.2 million lawsuit from US leasing firm Jet Midwest, which claims that Rex unlawfully dismantled and scrapped four Saab aircraft from an Arizona boneyard in 2020.
Court documents filed in the NSW Supreme Court reveal that Rex initially agreed to purchase the planes for $2 million, providing a $200,000 deposit in 2019. However, due to financial challenges posed by the COVID-19 pandemic, Rex requested additional time to complete the payment.
Jet Midwest alleges that Rex failed to make the required payments by June 2020, leading to the contract’s termination. Despite this, Rex allegedly dismantled the planes in October 2020 without authorization, instructing a third party to remove parts such as engines and propellers before scrapping the airframes and profiting from the sale of the components.
The case is scheduled for a hearing on Friday in the NSW Supreme Court. This lawsuit comes as Rex faces significant challenges, including the sale of four Saab 340Bs and its recent move into voluntary administration, impacting its domestic operations.
