The Arlington, Va.-based airline acknowledged yesterday that its 1996 cancellation was a breach of contract. The carrier made an undisclosed payment to Boeing.
US Airways had disclosed in a filing with the Securities and Exchange Commission that it would have been liable for $450 million in damages for breaching two contracts worth $1.9 billion.
"Based on mutual business considerations, Boeing and US Airways have resolved our differences," the companies said in a statement.
US Airways long has been a Boeing customer, and the settlement follows the carrier's announcement Thursday that it's forming a partnership with another major Boeing customer, American Airlines American Airlines
Major U.S. airline. American was created through a merger of several smaller U.S. airlines and incorporated in 1934. It continued to buy the routes of other airlines, becoming an international carrier in the 1970s; its routes include South America, the .
US Airways also has been shopping for widebody jets, announcing several months ago that it wants to buy up to 20 Boeing 777s The Boeing 777 is an American long-range wide-body twin-engine airliner built by Boeing Commercial Airplanes. The world's largest twinjet and commonly referred to as the Triple Seven, it can carry between 301 and 368 passengers in a three-class configuration and has a range from or Airbus A340s For the road in England, see .
The Airbus A340 is a long-range four-engined widebody commercial passenger airliner manufactured by Airbus S.A.S. a subsidiary of EADS. It is similar in design to the twin-engined A330. .
The carrier has not made a decision, but industry analysts speculate that any deal with Boeing would involve a resolution of the contractual dispute.
"We're still talking with them," Boeing spokeswoman Liz Verdier said. "They are going to make a decision, and hopefully they'll choose Boeing."
Boeing's lawsuit against the carrier and US Airways' countersuit coun·ter·sue
tr.v. coun·ter·sued, coun·ter·su·ing, coun·ter·sues Law
To bring proceedings against (a plaintiff) in direct opposition to a suit brought against onself.
..... Click the link for more information. stemmed from the airline's refusal in 1996 to accept delivery of eight Boeing 757 aircraft or to make a $3 million partial payment to Boeing.
US Airways executives told Boeing officials to void two contracts to buy the eight 757s and 30 737s.
As part of the agreement, US Airways dropped its counterclaim A claim by a defendant opposing the claim of the plaintiff and seeking some relief from the plaintiff for the defendant.
A counterclaim contains assertions that the defendant could have made by starting a lawsuit if the plaintiff had not already begun the action. against Boeing.
B)
