Dynamic International Airways Files for Bankruptcy
US based charter airline, Dynamic International Airways LLC on Wednesday filed a voluntary Chapter 11 petition in a United States Bankruptcy Court to stabilize its business following legal issues that have been plaguing the company.
The privately held North Carolina-based airline made the decision to file following litigation matters resulting from Hajj flights the airline operated in 2014 for Air India as well as the entry of a judgment affirming a US$10 million arbitration award against Dynamic issued by the Canadian Arbitration Association.
The Canadian Arbitration Association in April 2017 determined that the airline was in breach of contract by failing to pay commissions to BKP Enterprises, one of two Indian firms that acted on its behalf during the Hajj contract.
Dynamic has filed a notice of appeal and intends to challenge the judgment and award, but had other no immediate recourse to stay the judgment resulting in the commencement of the Chapter 11 proceedings.
“Operating under the protection of the US Bankruptcy Court will enable us to continue to serve our customers, keep our team employed and work with our vendors while we navigate through the challenges presented. Once we have completed the reorganization process, we expect Dynamic Intl. to emerge as a stronger company with a sound financial structure that is appropriate not only for today’s level of business activity, but also for the future,” stated Paul Kraus, CEO.
Dynamic provides charter and contract commercial passenger air travel services to the general public and is a licensed and certificated air carrier authorized by the U.S. Department of Transportation and the U.S. Federal Aviation Administration.
The carrier currently offers passenger flights from New York JFK to Georgetown Cheddi Jagan, among other city pairs using a fleet of Boeing 767s.
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