Sunday 23 January 2011

ATCL sued for USD 5.7m

From IPPMedia/The Guardian, Dar es Salaam
By Dominic Nkolimwa

Air Tanzania Company Limited (ATCL) is being sued in American and South African courts for failing to pay USD 5.7million after breaching contracts.

Transport Minister, Omari Nundu told The Guardian in an exclusive interview yesterday that Celtic Capital Air Corporation of the US for failing to pay the debts amounting to USD 1.5milion after alleged breach of contract for lease of planes in March last year.

He said South African Airways is suing ATCL for failing to pay USD 4.2 million.

Nundu said Celtic Corporation had leased two Boeing 737-200 planes to ATCL.

“ATCL leased two planes from the Corporation, but as time went by it stopped using one of them,” he said adding: "The contract for the second air craft lapsed in March 2010 following the plane crash at Mwanza airport.

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