The planned auction of two aircraft to recover a debt of over Sh77 million owed to a fuel supplier faces challenges following a warning from Avmax Aircraft Leasing Inc., an Italian aircraft sales leasing firm. Avmax Aircraft Leasing stated that the two aircraft set for sale did not belong to Five Forty Aviation Ltd.

This debt is linked to a judgement from April 17, 2020, in which the low-cost airline, Five Forty Aviation Ltd, owes Fine Jet Ltd. $512,829. Nairobi Connection Services Auctioneers had published a notice on October 23, inviting buyers to purchase a Bombardier CRJ-100 (5Y-BXC) and a DHC-8-300 (5Y-RJS) to recover the debt.

However, in a later advertisement on Friday, October 27, Avmax Aircraft Leasing clarified that the two aircraft were not the property of Five Forty Ltd. They warned the public to avoid potential complications arising from ignorance of this fact.

The initial advertisement had scheduled the auction for the following Tuesday at the auctioneer’s offices at View Park Towers, with cash or transfer payment terms upon the fall of the hammer.

Furthermore, Avmax Aircraft Leasing informed the public about four other aircraft in their possession.

In 2011, Fine Jet Ltd sued Five Forty Aviation, demanding payment for the sale of fuel. Fine Jet engages in the purchase of oil products from major oil importers and resells them to third parties. The company alleged that it supplied jet fuel uplifts to Five Forty Ltd on various dates at various supply points in Kenya, Uganda, and South Sudan, with agreed prices at the start of each month.

Although the debt had been settled without complaint since December 2008 when the business relationship commenced, the parties fell out over alleged overcharging, leading to a court case. In February 2012, Justice Jonathan Havelock ruled in favor of Fine Jet after striking out the defense of Five Forty. An appeal by the airline company resulted in the case being returned to the High Court.

Last month, Fine Jet sought to attach two aircraft (5Y-CGL and 5Y-BUZ), but East Africa Safaris Air Ltd objected, claiming ownership of the leased aircraft, which were registered under Avmax Aircraft Leasing. Justice Josephine Mong’are dismissed the case, stating that aircraft, like all motorable vessels, are registerable chattels, and there exists a record-keeping system for identifying ownership. She concluded that the attached aircraft were the property of the defendant/judgment debtor and were available for attachment to satisfy the judgment debt.