Irish aircraft lessor AMCK Aviation – now part of Carlyle Aviation Partners – has appealed a June 2024 US court decision awarding Frontier Airlines (F9, Denver International) $48.6 million for a terminated sale-and-leaseback agreement for six A320-200s.
According to court documents, AMCK Aviation Holdings Ireland Limited and its subsidiaries Accipiter Holding and Vermillion Aviation Holdings filed an appeal with the U.S. Court of Appeals for the Second Circuit on July 16.
Frontier first filed suit in New York’s Southern District Court in 2020, seeking $53 million in damages.
The dispute arose from a 2019 agreement under which AMCK was to purchase six A320 aircraft and lease them back to Frontier. Amid the Covid-19 pandemic, Frontier requested a temporary deferral of lease payments. Although informal agreements were made, no formal written contract was signed. AMCK terminated the contract in May 2020, citing non-payment, which resulted in Frontier incurring higher costs from other lessors.
The case centered on whether AMCK had waived its right to timely payments. The court concluded that AMCK had breached the Master Agreement by wrongfully terminating it. The lessor is now appealing that ruling and may seek to reverse or reduce the damages awarded to Frontier.
