…as company stops selling tickets, slows down operations
Faced with bankruptcy and lawsuits which could force it to sell, Dynamic Airways may be in the process of preparing to pull out of the local aviation sector.
According to local representative for the airline, Captain Gerry Gouveia, Dynamic is currently slowing down its operations, and has stopped selling tickets.
“They are slowing down the operations as of this time. In another couple of days, I will know for sure what is happening. They have not been selling any tickets, but we are examining the situation. When I know for sure by Dynamic, I will let the public know,” Gouveia told this publication.
Gouveia has revealed plans to meet with officials of the US-based company to determine future plans. A number of travel agencies recently voiced concerns over the cancellation of all Dynamic flights for the remainder of the year.
After investigations, it was revealed that the airline is planning to suspend operations soon. However, it is yet to inform the public what it intends to do regarding those passengers who have already booked flights with them.
Dynamic had, earlier this year, announced that it had filed for bankruptcy with the United States Bankruptcy Court. It had noted that it would continue operations as normal.
The voluntary Chapter 11 petition was filed by Dynamic Airways with the United States Bankruptcy Court in the Middle District of North Carolina. According to the United States Courts website, this chapter of the Bankruptcy Code generally provides for reorganisation.
Chapter 11 allows a debtor to propose a plan of reorganisation to keep its business alive and pay creditors over time. This includes the lawsuits from Hajj flights that Dynamic operated in 2014 for Air India, and an arbitration award against Dynamic Intl., finding that the airline was in breach of contract by failing to pay commissions to BKP Enterprises in connection with the Hajj flights.
Just a month after filing for bankruptcy, one of the airline’s creditors had moved to the courts to force the airline to liquidate its assists after Dynamic owed some US$1.19 million. The creditor, PMC Aviation LLC of Greensboro, claimed in its motion for liquidation that Dynamic was suffering from millions of dollars of continuing losses, and that the debtor (airline) had been grossly mismanaged. Back in 2014, the airline had suspended its operation for four months.