CI Lost Lawsuit, Needs To Pay NT$1.1billion To CAA

Fri Jun 07, 2002 1:12 pm

A lawsuit between China Airlines and CAA had it's first court hearing and judgement concluded hours ago. China Airlines have to pay NT$1.1billion to CAA for the interest.

It all begins back in 1987. Taiwan Government asked CAA to buy 10 US-built jet, in order to balance the trade between Taiwan and US. CAA later leased these planes ( mix of MD11 and 747) to CI, although CI has no needs to accept more planes and increase operations. The contract was renewed every 3 years. However, CAA announced the interest rate will be raised, and asking CI to pay the interest of NT$1.1billion (cumulated from 1990 to 1993). The rate was 3.4-3.9%, but CAA raised to 6.25%

CI later filed the lawsuit, and lost in the 1st court hearing today.