US based air carrier, Dynamic International Airways has filed a voluntary Chapter 11 petition with the United States Bankruptcy Court in the Middle District of North Carolina, Greensboro Division.
The airline's decision to file 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.
Dynamic Intl. 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. Dynamic Intl. fleet of aircraft includes six Boeing 767s which operate international flights between United States cities and territories and foreign countries.
During the Chapter 11 case, Dynamic Intl. intends to continue its normal operations and has arranged for a credit facility to facilitate both its operations while in Chapter 11 and also its ability to reorganize.
"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.
While Dynamic Intl. experienced the expected growing pains of a new airline, it has focused on continuously improving and expanding its operations. This week Dynamic International Airways will begin carrying Chinese passengers from Nanchang, in China's Jiangxi province to Ontario, California, USA; the first ever flights from China to land at Ontario International Airport since commercial service began there in 1949.