Dynamic US$200,000 bond may not be enough for passenger refunds

The US$200,000 bond lodged by Dynamic Airways to refund passengers in Guyana who purchased tickets to travel on the now defunct airline may not be enough.  Stabroek News was reliably informed that while the Ministry of Public Infrastructure has started the administrative process, the money may not be enough to cover all the individuals eligible for a refund.

Attempts made to contact Director-General of the Guyana Civil Aviation Authority (GCAA) for a comment were unsuccessful since it was related that he was out of office until Monday.

Meanwhile, it was further related that while the number of passengers eligible for a refund stands at an estimated 600, the list itself it “very fluid,” since names continue to be added.

In addition, the bond is also expected to be used for the administrative process of paying the refunds, putting even more strain on the funds.

It is uncertain whether additional funds will be sought to compensate the other eligible passengers and from where they would be sourced, since it is unlikely that government would intervene.

Nevertheless, Stabroek News was told that efforts are being made to set up a bank account to allow easier access for the disenfranchised passengers.

In January, the Ministry of Public Infrastructure disclosed that it would begin the process to access a bond for the sum of US$200,000 which was lodged by Dynamic International Airways in collaboration with its local handling agent, Roraima Airways Inc., when it began operations here.

A release from the GCAA said that the monies will be used to refund passengers in Guyana who purchased tickets to travel on the now defunct Dynamic Airways, provided that they have not been able to use the whole or part of same to travel.

The release said that Roraima Airways Inc. had submitted a list of 609 passengers who are eligible for the refund to the ministry. The ministry was to publish the names of the eligible passengers in the local press in order for them to uplift their refunds. In October last year, Dynamic International Airways formally announced that effective October 3rd, 2017 it had discontinued its regular service between New York and Guyana.

It said this had become necessary as it continued to reorganize its Chapter 11 (bankruptcy) case.  Ray Lawlor, Chief Executive Officer, said in a statement that the company regretted the development and wanted to thank customers for their support over the last four years that it served the Guyanese market.

“We are aware of the tremendous inconvenience this will cause to our customers who have loyally supported us over the years, for that we do apologize. We ask for your understanding with this situation and want to assure all passengers who were scheduled to use our services after October 3, they will be issued a refund on the un-used portion of their ticket. Dynamic intends to honor all its financial commitments to passengers, the Cheddi Jagan International Airport and the Guyana Civil Aviation Authority,” said Lawlor.

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