American Airlines Drops $500,000 Lawsuit Against Shipping Giant

The claim centered on a 2021 deal in which American hired the firm to transport a Rolls Royce engine from Dallas-Fort Worth, its hub airport, to Hong Kong for repairs and maintenance.

Kuehne + Nagel is a Swiss firm with one of over 1,000 branches located in Austin. It has more than 80,000 employees globally and a market capitalization of approximately $36 billion.

After the work was completed, Kuehne + Nagel transported the Trent 800 engine — used on American Boeing 777 jets — to Oklahoma at a cost of $208,078, according to the lawsuit.

However, the US lawsuit claimed that upon arrival it found the engine had “suffered significant damage in transit”.

Cost said the Trent 800 had damage to the overspeed protection unit, power conditioning unit, suitcase vent tube and electrical wiring.

American estimated it would cost $520,246 to completely repair the engine.

According to the complaint, the airline first filed a complaint with Kuehne + Nagel in August 2022 — but added that the shipping firm continued to “refuse to compensate American.”

It’s unclear why American withdrew the suit, which ordered Kuehne + Nagel to pay damages, American attorneys’ fees and interest at the “maximum rate permitted by law.”

An American Airlines spokesperson told Business Insider, “We are working with our partners at Kuehne + Nagel to resolve this issue.”

Kuehne + Nagel did not immediately respond to a request for comment from Business Insider.