Govt. liquidating $40M Dynamic Airways bond to refund over 600 passengers

Jan 12, 2018 News

Government is moving to liquidate US$200,000 held in escrow to pay off Dynamic Airways passengers who were stranded late last year.
According to the Ministry of Public Infrastructure, it has initiated the process to access a bond for the sum of US$200,000 which was lodged by Dynamic International Airways, LLC, in collaboration with their local handling agent, Roraima Airways Inc.
“The funds will be used to refund passengers in Guyana who purchased tickets to travel on the now defunct Dynamic Airways, provided that they have not been able to use the whole or part of same to travel,” it was explained.
It was also disclosed that Roraima Airways has submitted to the Ministry, a list of 609 passengers who are eligible for the refund.
“The Ministry of Public Infrastructure will publish the names of the eligible passengers in the local press, and details for these individuals to uplift their refunds. Passengers eligible for a refund whose names are not published are asked to contact Roraima Airways Inc. to access same.”
The Ministry said that it is assuring affected passengers that it is working assiduously to have the process expedited.
In October 2017, Dynamic Airways confirmed that it was pulling out, leaving close to 200 unemployed. The North American operation had been here for four years, flying five times weekly before reducing to two flights last year.
During the four-year period, it had transported at least 80,000 passengers to and from Guyana.
The step of declining from air travel services was taken by the authorities of Dynamic Airways after they would have been sued by several passengers due to their ‘inhumane experiences’.
It was announced in July 2017 that US-based air carrier, Dynamic International Airways, had 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 followed upon litigation matters resulting from Hajj flights the airline operated in 2014 for Air India. It also followed the entry of a judgment 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 it filed a notice of appeal and intends to challenge the judgment and award, Dynamic Intl. had no immediate recourse to stay the judgment and determined the commencement of the Chapter 11 case was necessary.

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