Boeing Sued By Longtime Parts Maker Amid Leadership Struggles for Aerospace Giant (excerpt)
(Source: Geekwire; posted Dec. 26, 2019)
Leonardo, an aerospace and defense giant based in Italy, filed a lawsuit Monday against Boeing, just hours after Muilenburg’s termination. Leonardo claims Boeing suddenly took issue earlier this year with parts it has supplied for decades, charging tens of millions in repair costs. Boeing has allegedly refused to pay invoices for other parts Leonardo has supplied, in a breach of contract, according to the suit.
Leonardo has made slats — aerodynamic surfaces on the edges of wings that slow planes down and help them take off and land in shorter distances — for Boeing 767 planes since 1979, per the lawsuit. In June, Boeing reported several issues with the slats for the first time, including minor scratches and “foreign object debris.”
Boeing repaired the slats, according to the suit, and then sent Leonardo a bill for close to $26.2 million. Boeing allegedly pledged to withhold payments on other invoices from its long-time partner until the bill got paid in full.
In court documents, Leonard said it bills Boeing roughly $20 million per year for slats.
“This means that, under Boeing’s current claim that it has the right to set off $26 million against Leonardo’s future invoices, Leonardo would be forced to produce slats for Boeing at no cost for more than one year,” according to court documents.
Boeing escalated the dispute earlier this month when it warned Leonardo of plans to send a second invoice for slat repairs and “collateral impact” totaling $33 million, according to court documents. (end of excerpt)
Click here for the full story, on the Geekwire website.
Click here for Leonardo’s court filing (50 PDF pages), on the Scribd website.
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