Dynamic International Airways LLC has filed a $97.7 million breach of contract lawsuit against Air India in the U.S. District Court for the Southern District of New York.
Dynamic Airways, which recently added “International” to their name, was sub-contracted by Air India in 2013 and 2014 for the carriage of holy pilgrims between India to Saudi Arabia.
Dynamic carried 47,976 passengers for Hajj 2014 and carried around 6000 passengers for Hajj 2013. Air India owes more than $8.8 million for Hajj 2013 and 2014. The complaint filed in the U.S. District Court for the Southern District of New York states that Air India has been using accounts reconciliation in bad faith in order to delay making any payments.
Air India, due to long overdue payments, decided to terminate its business relationship with Dynamic. Dynamic had a reasonable expectation to collect revenues of around $42 million related to Haj 2015 and $42 million for Haj 2016. Because of Air India’s (anticipatory) breach of contract, Dynamic has lost expectation damages of not less than $84 million.
Dynamic is a US Certificated air carrier which offers service from airports in New York, Guyana, Florida, Venezuela, Hong Kong and Palau with its fleet of B767 wide body aircraft.