Air India sued for $98 Million

In an alleged breach of contract, an international airways titled ‘Dynamic Airways’ sued Air India for $98 millions in an US Federal Court in New York. Dynamic Airways is a Greensboro. N.C. based international airlines which entered into a contract with Air India over holy Hajj pilgrims.

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According to the sub-contract between Air India and Dynamic, the latter carried 6000 and 47,976 Hajj pilgrims from India for the years 2013 and 2014 respectively. But Air India didn’t pay Dynamic promptly for its services according to the contract between them and owed huge amounts.

Further, Air India decided to discontinue the contract between them. However, Dynamic Airways had great future expectations regarding its revenue for the years 2015 and 2016 from the contract for carrying Hajj pilgrims. Accounts reconcillation is the cause shown by Air India for delay in payment.