A China-based air travel firm is suing Canadian plane manufacturing giant De Havilland Aircraft of Canada Ltd. for more than US$2 million over the purchase of aircraft.
An April 7 B.C. Supreme Court notice of civil claim names the company and the now-defunct Viking Air Ltd. of Saanich, which amalgamated with Calgary-based De Havilland.
The plaintiff in the case is Meiya Air Co. Ltd of China’s Hainan province, represented by Richmond lawyer Benjamin Yang.
Asked if any aircraft were delivered in the case, Yang declined to comment, saying the case is before the courts.
The claim said Viking was amalgamated into De Havilland in August 2024.
It said the plaintiff agreed that Viking’s obligations, debts and liabilities would be assigned to its successors and assignees, and that De Havilland assumed those obligations.
The claim alleges Viking and Meiya on April 24, 2012, entered into a deposit agreement for purchase and sale of any or all of three DHC6 Series 400 Twin Otter aircraft
The claim said Meiya would issue a US$610,000 (C$845,401, as of April 17, 2025) deposit to Viking for each ordered plane and issue a deposit of US$305,000 (C$422,657) for each optioned plane.
The agreement also included obtaining certification from the Civil Aviation Administration of China.
In early 2014, the parties entered into two agreements and extended the deposit agreement contingent on Chinese certification of the aircraft by Oct. 31, 2014.
The parties then entered into an agreement for purchase and sale of two planes on June 27, 2014.
Maiya agreed to pay US$6.1 million (C$8,453,142) for each plane, as well as for spares and other equipment.
The claim said the plaintiff’s accounting firm wrote to the defendants Dec. 31, 2019, to confirm outstanding deposits of US$2.135 million (C$2.96 million).
“The defendants failed to respond,” the claim said.
The claim said a Maiya representative travelled to Canada in September 2024 to meet with the defendants’ representatives to ask about the deposits.
“During this meeting … the plaintiff discovered its deposits were no longer in the possession and/or control of Viking,” the claim said. “It was in September of 2024 that the defendants first acknowledged their liability in respect of the plaintiff’s claim.”
In addition to the US$2.135 million, Meiya seeks breach of contract damages, general, special, delay and aggravated damages.
De Havilland response
De Havilland said in a statement to BIV that it is aware of the claim.
“Out of respect for the litigation process before the B.C. courts, we are unable to comment further at this time,” the statement said.
Two planes were expected in the fourth quarter of 2014, the claim said.
De Havilland is a division of Bombardier Inc. (TSX:BBD-B)
None of the allegations have been proven in court.
