Dynamic Airlines-turned Eastern Airlines’ application to provide air services between the John F. Kennedy Airport (JFK) and the Cheddi Jagan International Airport (CJIA) using the Boeing 767 200/300 aircraft, has been approved by Cabinet. However, given the history of the company’s former brand, the government has requested that Eastern Airlines post bonds, in case the company drops the ball.
Director-General of the Ministry of the Presidency, Joseph Harmon, during the post-cabinet press briefing this morning, said, “Cabinet approved the submission and has agreed that the airline can commence operations on or before December 8, 2019, subject to the posting of a bond of US$250,000 to the Government of Guyana, and a separate bond of US$200,000 to the Guyana Revenue Authority,”
The official, while recognising that bonds are not required for scheduled services, said that an exception had to be made given the history of the airline.
“Well you know, there has been some history with respect to this particular airline, and therefore, when the application came, it took some amount of due diligence to come to the point of deciding…I think there has also been some serious lobbying by other entities outside of Guyana suggesting that this is an important time for his airline. But we were always concerned about the history, and the fact that we do not want to have Guyanese people stranded again, having bought tickets and stranded either here in Georgetown, or in New York,” Harmon said.
He added that the stipulation of bonds was one “sure way” of ensuring that should the airlines’ services be disrupted, the authorities would be in a position to be able to charter aircraft to get people to their destination.
In July 2017, following several occurrences of passengers being stranded at CJIA and the JFK airport, the carrier announced that it had filed a voluntary Chapter 11 petition with the United States Bankruptcy Court.
It stated that it intended to continue its operations here as its principals had restructured plans. The airline noted that its decision to file for bankruptcy protection followed litigation matters resulting from Hajj flights the airline operated in 2014 for Air India.
Dynamic subsequently announced that as of March 8, 2018, it was out of bankruptcy protection and would be developing its aircraft, crew, maintenance, insurance (ACMI) charter business under its Eastern Airlines brand.