Air India Sued for $98M in US Federal Court for Breach of Hajj Contract

Greensboro, North Carolina (MMD Newswire) September 18, 2015 — Dynamic International Airways LLC launched a $97.7 million breach of contract suit in New York federal court on Tuesday, alleging that Air India Ltd. still owes it millions under two charter agreements to carry passengers between Saudi Arabia and India and reneged on two other future deals.

Dynamic, a Greensboro, North Carolina-based air carrier and charter service provider, claims that Air India has breached both its 2013 and 2014 charter agreements by dragging its feet on paying the approximately $8.8 million it still owes Dynamic for flying thousands of passengers between Saudi Arabia and India during the annual Muslim pilgrimage to Mecca called hajj.

Air India has been “making excuses” for not paying the remaining $8.3 million it owes Dynamic for carrying more than 47,000 passengers in 2014, as well as the $74,000 it still owes Dynamic for carrying passengers in 2013, the complaint alleges. On top of that, Air India also has not paid back Dynamic the surety bond of $445,000 that Dynamic provided to Air India.

When the hajj operation had been completed in early November 2014, Air India used an account reconciliation process provided for in the charter agreement – that was actually supposed to be completed more than eight months ago, in December 2014 – to further delay payments to Dynamic, the complaint says.

The case is Dynamic International Airways LLC v. Air India Ltd., case number 1:15-CV-07054, in the U.S. District Court for the Southern District of New York.

About Dynamic

Dynamic International Airways LLC is a US Certificated FAR PART 121 AIR CARRIER headquartered in Greensboro, NC and offers service from airports in New York, Guyana, Florida, Venezuela, Hong Kong, Palau with its fleet of B767 wide body aircrafts. Recently company has added “International” in its official name as reflection of its transition into international long haul carrier.

Case number 1:15-CV-07054 http://www.law360.com/cases/55ef37161ebd5b1af5000004

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