An Israir Airlines and Tourism Ltd. aircraft was seized by the authorities in Portugal yesterday when it landed at Lisbon Airport. The aircraft, an Airbus A320, was seized because of an alleged unpaid debt amounting to millions of euros to Portuguese airline EuroAtlantic Airways.
EuroAtlantic CEO Tomaz Metello said that Israir owed his company a debt incurred seven years ago and still unpaid. In December 2014, Portugal's Supreme Court ruled in favor of EuroAtlantic in a claim it had filed against the Israeli airline.
"Despite the fact that the court found the claim justified, Israir did not pay the debt, and so we decided to issue a foreclosure order on the aircraft," Metello said, adding that Israir CEO Uri Sirkis was on his way to Portugal to try to resolve the matter. Israir's flight schedule has suffered disruption because of the seizure of the aircraft.
Israir said in a statement, "In a surprise move, an Israir aircraft was detained at the airport in Lisbon. The reason for the detention is an eight year-old legal dispute currently before the courts in Portugal over the supply of an EuroAtlantic aircraft to Israir with which Israir operated flights to New York.
"In the course of the dispute, Israir was required to pay $2 million to EuroAtlantic. Israir made a provision of this amount in its books in 2014, and also prepared for the payment from the point of view of cash flow. It should be made clear that the reason for the detention is not an operational debt to the authorities at the airport in Lisbon or to its suppliers. Without warning, and in a violent move intended to hold the passengers hostage, the aircraft was detained in Lisbon."
Published by Globes [online], Israel business news - www.globes-online.com - on May 26, 2015
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