DUBAI - Etihad Airways and Aldar Properties plan to appeal a court judgement to pay 2.8 million pound ($4.64 million) in damages as compensation for terminating a sponsorship deal with the Force India F1 team, UAE daily the National reported on Saturday.The High Court in London ruled this week that the two Abu Dhabi-based companies wrongfully terminated their agreement with Force India in 2008, according to media reports.
Etihad went on to sponsor the Ferrari F1 team the same year.
Etihad and Aldar signed a three-year deal with Force India, then called Spyker, in 2007, but pulled out a year later citing conflict of interest after Vijay Mallya, owner of Kingfisher Airlines, bought shares in the team.
The companies had agreed to pay $5 million for 2007, $6 million for 2008 and $9 million for 2009 in addition to performance bonuses.
“Etihad Airways and Aldar Properties were surprised at the judgment and strongly disagree with its conclusions,” an Etihad spokesman was quoted as saying.
“We have been advised that there are strong grounds for appealing the decision.”
Etihad sponsors Ferrari along with Abu Dhabi-owned investment company Mubadala, which also owns a 5 percent stake in the Italian car maker.