Thai Airways International Public Company Ltd v KI Holdings Co Ltd & Anor

Thai Airways International Public Company Ltd v KI Holdings Co Ltd & Anor

Thai is entitled to recover the costs reasonably incurred in mitigation of Koito’s breaches, including leasing substitute aircraft for two years, purchasing replacement seats, storage and technician expenses, compliance costs, and must give credit for monetary benefits proven by Koito, such as price de-escalation...

Source-derived case information.

Parties
Claimant: Thai Airways International Public Company Ltd; Defendant: KI Holdings Co Ltd (formerly Koito Industries Ltd); Defendant: Asia Fleet Services (Singapore) PTE Ltd
Jurisdiction
England and Wales
Judgment Date
11 May 2015
Procedural Posture
Commercial Contract Dispute / Final Judgment
Outcome
Judgment for claimant (Thai Airways) against defendant (Koito) for damages.
Legal Topics
Breach of Contract, Mitigation of Damages, Assessment of Damages, Betterment, Pecuniary Advantage, Aircraft Supply Contracts
Contract Law Commercial Law Breach of Contract Mitigation of Damages Assessment of Damages Betterment Pecuniary Advantage Aircraft Supply Contracts

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Parties

Thai Airways International Public Company Ltd

Claimant

KI Holdings Co Ltd (formerly Koito Industries Ltd)

Defendant

Asia Fleet Services (Singapore) PTE Ltd

Defendant

Procedural Posture

Commercial Contract Dispute / Final Judgment

Legal Issues

  1. 1 Measure of damages for breach of contract
  2. 2 Application of mitigation principles
  3. 3 Entitlement to credit for betterment

Ratio Decidendi

Thai is entitled to recover the costs reasonably incurred in mitigation of Koito’s breaches, including leasing substitute aircraft for two years, purchasing replacement seats, storage and technician expenses, compliance costs, and must give credit for monetary benefits proven by Koito, such as price de-escalation from Airbus, but not for speculative or unproven benefits. Koito failed to prove that monetary benefits from mitigation offset Thai’s losses, except for the price reduction. Credits from Airbus for new aircraft are not attributable to Koito’s breach.

Court Disposition

Judgment for claimant (Thai Airways) against defendant (Koito) for damages.

Orders

  • Thai entitled to recover lease costs for two years (approx. US$107m)
  • Thai entitled to recover additional costs for replacement seats (ZIM and Recaro)