Kuwait Airways fined $1m for unpaid contracts

17 May 2009

Kuwait Airways has lost its appeal against Philippine Airlines for the non-payment of passenger and cargo services dating back to 1995 and been ordered to pay over $1m by the Supreme Court of Philippines. The long-running battle stems from the signing of a deal by the governments of Kuwait and the Philippines, which granted exemptions to royalty payments, effective from the signature date. Kuwait Airways argued that the deal terminated the previous commercial agreement immediately, but the Supreme Court disagreed.

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