Faced with a bankruptcy move and lawsuits that could see it being forced to sell off some of its assets to meet debts, Dynamic Airways is preparing to suspend its operations to Guyana and pull out of the market completely.
The move could come as early as next week and could put a dent in the local travel market.
Already, some travel agencies have stopped selling tickets for the airline, while others have indicated that they are yet to be officially informed of the move, but have stopped selling tickets as a precaution.
Local representative for Dynamic Airways, Captain Gerry Gouveia, told News Source on Monday that the operations are likely to be suspended within days, but he intends to meet with officials of the U.S based company to get a clearer understanding of its longterm plans.
Travel agents have reported that late last week they noticed that all of the Dynamic Airways flights for the remainder of the year were cancelled out.
The airline has not informed agents as yet as to how it intends to transfer those passengers who would have already booked and paid for their flights, to other airlines.
Back in July, Dynamic announced that it had filed a voluntary Chapter 11 petition with the United States Bankruptcy Court.
At the time, the airline said it planned to continue “normal operations”.
According to a statement from the airline, its decision to file bankruptcy followed litigation matters resulting from Hajj flights that it operated in 2014 for Air India.
But just a month after that bankruptcy move, one of the airline’s top unsecured creditors moved to the US Courts to force the airline into liquidating its assets.
The creditor, PMC Aviation LLC of Greensboro, North Carolina, is owed US$1.19 million, which represents an arbitration judgment reached in April 2017.
This will not be the first time that Dynamic Airways will be suspending its Guyana operations. After a shaky start in 2014, the airline suspended its operations for four months.
It returned and started to offer as many as five flights per week and that frequency climbed in the peak seasons. This latest suspension move comes at a time when the airline is operating five weekly flights and is enjoying a 90% load rate.
Captain Gerry Gouveia believes that the suspension could have a major impact on travel to Guyana during the upcoming Christmas peak season.
The other airlines which offer services to the United States from Guyana are Caribbean Airlines, Fly Jamaica, Suriname Airways and Copa Airlines.