Dynamic International Airways (Greensboro Piedmont Triad International) is suing Air India (AI, Delhi International) for USD97.7 million in a New York Federal Court citing a breach of contract. In the suit filed early last month, Dynamic alleges the Indian national carrier did not pay it for Hajj charter flights carried out between India and Saudi Arabia in 2013 and 2014. It also alleges Air India reneged on two future contracts covering the 2015 and 2016 seasons.
"Dynamic carried 47,976 passengers for Hajj 2014 and carried around 6,000 passengers for Hajj 2013," it said in a statement. "Air India owes more than USD8.8 million for Hajj 2013 and 2014."
Dynamic also alleges that Air India did not reimburse the surety bond of USD445,000 that Dynamic provided to Air India for the 2014 hajj.
The North Carolina-based charter specialist adds that as Air India has chosen to discontinue their Hajj charter relationship as a result of the outstanding claims, it will also seek lost expectation damages of not less than USD84 million for the Hajj 2015 and 2016 seasons. It justifies the claims on the grounds that it has already made substantial fleet investments by either acquiring or leasing additional aircraft in anticipation of demand.
The complaint also states that even though Hajj operations for 2014 ended in November of last year, Air India has been using account reconciliation in bad faith in order to delay making any payments to Dynamic Int'l Airways.
