A Thai court has awarded Nevada-based lessor and charter operator Logistic Air (Reno/Tahoe) USD874,000 in compensation from City Airways (Bangkok Suvarnabhumi) after the defunct Thai carrier defaulted on a B737-400 lease agreement.

The ruling was confirmed by Logistic Air president, Vandi Cooyar.

The Thai airline added the aircraft in question, a 1994 vintage msn 27191, then registered as HS-GTG, in mid-2015. It was then repossessed after just three months due to the alleged non-payment of lease dues. However, it was returned to service shortly afterwards to replace another -400, HS-GTE (msn 27087). It was subsequently grounded by the authorities in mid-February 2016, returned, and stored as N650CS.

City Airways was grounded by the Civil Aviation Authority of Thailand (CAAT) in early 2016 over its poor financial standing and inability to maintain adequate safety standards. Prior to that, City Airways linked Bangkok Don Mueang with each of Phuket and Hong Kong International.