Air India sued for alleged breach of Hajj contract
Guest Writers are not employed, compensated or governed by TD, opinions and statements are from the specific writer directly
Air India is being sued for US$97.7 million for an alleged breach of its Hajj flight contract with US-based Dynamic International Airways.
Dynamic has lodged the lawsuit against the Indian national carrier in the New York Federal Court, relating to the carriage of Muslim pilgrims from India to Saudi Arabia in 2013 and 2014.
The US-based airline claims that it carried 47,976 Hajj passengers for Air India in 2014 and around 6,000 in 2013, under a sub-contracting arrangement. It also asserts that Air India owes it more than US$8.8m.
These outstanding payments are expected to cause the termination of the sub-contracting arrangement, according to Dynamic, which it claims will lead to lost future revenue.
Dynamic said it had a “reasonable expectation” that it would generate revenues of around US$42m per year for Hajj flights in 2015 and 2016. “Because of Air India’s (anticipatory) breach of contract, Dynamic has lost expectation damages of not less than US$84 million,” it added.
Comments are closed.