US based air carrier, Dynamic International Airways announced on Wednesday night that it has filed a voluntary Chapter 11 petition with the United States Bankruptcy Court.
The airline which has five weekly flights to Guyana intends to continue its “normal operations”, while it works out a restructuring plan.
According to a statement from the airline, its decision to file bankruptcy follows upon litigation matters resulting from Hajj flights the airline operated in 2014 for Air India.
“It also follows the entry of a judgement in the United States District Court for the Middle District of North Carolina affirming an arbitration award against Dynamic Intl. issued by the Canadian Arbitration Association in April 2017, which determined that Dynamic intl. was in breach of contract by failing to pay commissions to BKP Enterprises in connection with the Hajj flights. While Debtor has filed a notice of appeal and intends to challenge the judgment and award, Dynamic Intl.has no immediate recourse to stay the judgment and has determined the commencement of the Chapter 11 case is necessary”, the statement said.
Dynamic International 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.
It has a fleet of aircraft, which includes six Boeing 767s that operate international flights between United States cities and territories and foreign countries.
According to the CEO of the airline, Paul Kraus, “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”.
Since it began operations to Guyana a few years ago, the carrier has found itself facing turbulence on the ground as passengers and even the government complained about the quality of its service. It has made efforts in the past year to improve that service and has even increased the frequency of its flights to Guyana.