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A tail parade of each of Air India's Boeing aircraft as in 2011. The 747-400, 777-300ER, 777-200LR and 737-800.
A tail parade of each of Air India's Boeing aircraft as in 2011. The 747-400, 777-300ER, 777-200LR and 737-800.

Air India faces Rs 640 crore lawsuit in US for breaching Haj contract

Dynamic International Airways LLC, a US air carrier head-quartered in Greensboro, North Carolina, has launched a $97.7 million (about Rs 640 crore) lawsuit against Air India alleging breach of contract in the United States District Court for the Southern District of New York.

The suit alleges for the years 2013 and 2014, Air India sub-contracted Dynamic to carry Haj pilgrims between India and Saudi Arabia. Dynamic carried around 6,000 passengers in 2013, and 47,976 passengers in 2014. Dynamic claims Air India owes it more than $8.8 million (Rs 57 crore).

The complaint alleges Air India has been using accounts reconciliation in bad faith in order to delay making payments, and due to the long periods of outstanding, decided it did not want to continue the contract with Dynamic. The latter had an expectation of about $42 million for each of the Haj years 2015 and 2016, a total of $84 million.

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About Devesh Agarwal

A electronics and automotive product management, marketing and branding expert, he was awarded a silver medal at the Lockheed Martin innovation competition 2010. He is ranked 6th on Mashable's list of aviation pros on Twitter and in addition to Bangalore Aviation, he has contributed to leading publications like Aviation Week, Conde Nast Traveller India, The Economic Times, and The Mint (a Wall Street Journal content partner). He remains a frequent flier and shares the good, the bad, and the ugly about the Indian aviation industry without fear or favour.

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