Koito Sued by All Nippon for 20 Billion Yen Over Seat Delay

Koito Industries Co., a Japanese seat maker that falsified test results, is being sued by All Nippon Airways Co. for 20 billion yen ($243 million) in damages after the company failed to deliver seats on time.

Asia’s largest listed carrier by sales seeks compensation because its operation of four Boeing Co. 737s was delayed and six Boeing 777s had to use other seats, Ryosei Nomura, a spokesman at All Nippon Airways, said by phone today. Koito acknowledged the lawsuit in a separate statement.

All Nippon and Thai Airways International Plc are seeking compensation as Koito delayed delivery of seats to make inspections after saying it made unauthorized design changes and had used uncertified materials for at least a decade. Koito in January said that it had set aside 1.4 billion yen for possible compensation to airlines.

Singapore Airlines Ltd., the world’s second-largest carrier by market value, in December said the introduction of its 12th Airbus SAS A380 was delayed after Koito failed to deliver business-class seats on time.

Koito Industries fell 1.4 percent to 143 yen at the 3 p.m. close of trade in Tokyo. The stock, which dropped 54 percent in 2010, is up 1.4 percent this year. Koito Manufacturing Co., which owns 50 percent of Koito Industries, declined 2.8 percent to 1,430 yen. All Nippon was unchanged at 295 yen.

To contact the reporters on this story: Chris Cooper in Tokyo at ccooper1@bloomberg.net; Go Onomitsu in Tokyo at gonomitsu@bloomberg.net

To contact the editor responsible for this story: Neil Denslow at ndenslow@bloomberg.net

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