XTRA Airways says the US$50 million racketeering lawsuit it is facing from Dream Pacific Aviation Services Hong Kong Ltd. is without merit as Dream Pacific failed to honor its contract with XTRA.

XTRA canceled its agreement with Dream Pacific after being unable to collect payments due, says parent of the carrier, AerSale.

XTRA plans to file a response in the US Court in Sapain, seeking damages against Dream Pacific for the "false allegations".

XTRA Airways, et al, face a $50 million racketeering lawsuit, filed by five businesses and 21 Chinese tourists after dropping flights from China to Saipan.