[Dymanic Airways, GCAA] ‘Nothing to worry about’

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[Dymanic Airways, GCAA] ‘Nothing to worry about’

Unread post by bimjim » Fri Jul 21, 2017

http://guyanachronicle.com/2017/07/20/n ... orry-about

[Dymanic Airways, GCAA] ‘Nothing to worry about’
— says GCAA as Dynamic Airline files for bankruptcy protection
Zena Henry
July 20, 2017

THE local aviation authority has expressed confidence in the ability of U.S.-based airline, Dynamic International Airways LLC to continue service in Guyana, despite the company’s voluntary petition in a U.S. Bankruptcy Court on Wednesday.

Guyana Civil Aviation Authority (GCAA), Director-General (DG), Captain Egbert Fields told the Guyana Chronicle on Thursday that Guyanese could breathe easily, since the authority does not believe local passengers will be impacted by the airline’s recent developments.

Fields explained that based on information available, the filing of the Chapter 11 petition was done to specifically deal with the company’s debt, which involves non-payment for service involving another destination where it operates.

“We have no problem whatsoever with Dynamic’s operation, since the Chapter 11 filing for bankruptcy is more for protection rather than them not having money to operate or them being unable to service debts.”

The GCAA head said the agency does not believe the filing of the Chapter 11 petition will impact safety or the company’s ability to service Guyana.

“There is nothing to worry about pertaining to this,” Fields said.

Roraima Airway’s boss and local Dynamic representative Gerald Gouveia, said in a statement the charter carrier, which offers chartered flights to regional cities in China, filed for bankruptcy protection to stabilise its business, which has been facing legal, and management issues.

The North Carolina-based company filed a voluntary Chapter 11 petition with the U.S. Bankruptcy Court in the Middle District of North Carolina, Greensboro Division, to allow it space in legal and book-keeping issues.

“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 U.S. District Court for the Middle District of North Carolina, affirming an arbitration award against Dynamic International issued by the Canadian Arbitration Association in April 2017, which determined that Dynamic international was in breach of contract by failing to pay commissions to BKP Enterprises in connection with the Hajj flights.”

Gouveia stated that while the debtor has filed a notice of appeal and intends to challenge the judgment and award, Dynamic has no immediate recourse to stay the judgment, promoting the commencement of the Chapter 11 case.

It was noted that Dynamic, will nonetheless, “continue its normal operations and has arranged for a credit facility to facilitate both its operations while in Chapter 11 and also its ability to reorganise”.

Guyanese have had their fair share of negative experiences with Dynamic in the past given numerous delays and flight cancellations that have had significant effects on passengers.

Dynamic’s CEO Paul Kraus was quoted as saying that, “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.”

He said once the re-organisation process is completed, Dynamic is expected to emerge 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.”

Dynamic provides chartered and contract commercial passenger air travel services to various ports around the world. It is a licensed and certificated air carrier authorised by the U.S. Department of Transportation and the U.S. Federal Aviation Administration.

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