MIAMI — Dynamic Airways has filed for voluntary Chapter 11 Bankruptcy. The company filed the petition with the United States Bankruptcy Court in the Middle District of North Carolina, Greensboro Division.
According to a release put out by the company:
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.
The airline will continue to fly as the airline restructures. According to CEO, Paul Kraus:
Operating under the protection of the U.S. 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.
Another source of financial headache comes from the October 29, 2015, fire that destroyed one of their Boeing 767s at Fort Lauderdale-Hollywood International Airport.
The news came one day before the carrier began roundtrip charter flights between Ontario, California (ONT) and Nanchang Changbei International Airport (KHN) with an intermediate stop in Anchorage, Alaska (ANC).
Dynamic will operate the route for seven weeks with the Boeing 767-300ER with 235 seats.
“The demand for air service between the Los Angeles area and China grows seemingly by the day and we are heartened by Dynamic International Airways’ move to Ontario. We will welcome visitors from Nanchang with open arms,” said June, Alan D. Wapner, President of the Ontario International Airport Authority.
“The summer charter flights will serve as a great audition for Ontario as we continue to demonstrate the high value our airport provides for international as well as domestic service,” concluded Wapner.
“Dynamic International Airways is dedicated to providing our passengers comfortable, low-cost, long-haul travel with the highest standards for customer service,” said Kraus. “We are confident ONT will add nicely to the enjoyable customer experience we strive to deliver with each and every flight.”
The service to Nanchang, China is scheduled through August 30.