Saudi airline facing lawsuit over the leased of 50 Airbus aircraft.

State-owned Saudi Arabian Airlines is facing a claim in London’s High Court filed last month by a Dubai-based financial services firm over an alleged breach of lease agreements of 50 Airbus aircraft, court documents showed.

Alif Segregated Portfolio Company, which specialises in shariah-compliant aircraft leasing, has filed a complaint against the Jeddah-based carrier, also known as Saudia, in which it could seek at least $460 million in unpaid rent and maintenance cost.

Alif also demands other damages and costs, the documents seen by Reuters showed.

London’s High Court told Reuters the claim has been filed but not yet acknowledged by the defendant.

The airline, in a statement to Reuters, said it would stand by its contractual commitments and was also prepared to defend itself against inaccurate claims.

It declined to comment on specific details of claims made against it but said that active legal proceedings had not begun. “We are currently in discussions with the lessor to resolve contractual differences, and we believe that common sense will prevail in the end.”

The deal between Alif and Saudia, announced by Airbus at the 2015 Paris Airshow, was hailed as the largest aviation deal to be secured via Islamic financing. The 50 aircraft, which account for a third of Saudia’s fleet, were worth around $8.2 billion when the deal was announced.

Saudi airline facing lawsuit over the leased of 50 Airbus aircraft.

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