Asia

Air India sued for $98M in US Federal Court for breach of Hajj contract

Boeing

Dynamic International Airways launched a $97.7 million breach of contract lawsuit against Air India in New York Federal Court.

Air India sub-contracted Dynamic International Airways for the year 2013 and 2014 for carriage of holy pilgrims from India to Saudi Arabia round-trip.

Dynamic carried 47,976 passengers for Hajj 2014 and carried around 6000 passengers for Hajj 2013. Air India owes more than $8.8 million for Hajj 2013 and 2014. The complaint filed in the U.S. District Court for the Southern District of New York states that Air India has been using accounts reconciliation in bad faith in order to delay making any payments.

Due to long outstanding amounts, Air India decided that it does not want to continue its future business relationship with Dynamic. Dynamic had a reasonable expectation to collect revenues of around $42 million related to Haj 2015 and $42 million for Haj 2016. Because of Air India’s (anticipatory) breach of contract, Dynamic has lost expectation damages of not less than $84 million.

The case is Dynamic International Airways LLC v. Air India Ltd., Case No. 15-cv-7054(PKC), in the U.S. District Court for the Southern District of New York.

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