Dynamic International Airways (Greensboro Piedmont Triad International) has announced it has exited Chapter 11 bankruptcy protection as of March 8 and is now seeking to develop its ACMI/charter business using the Eastern Airlines (2D, Miami International) brand.
Dynamic said in a disclosure to the US Department of Transportation (DOT) that under its court-approved reorganization plan, it will continue to operate ACMI-type charter flights in a bid to rebuild its financial resources. It said that during its time in bankruptcy protection, it had seen "substantial unmet public/market need for carriers with wide-body convertible aircraft". As such, it requires DOT approval to increase its beyond the current limit of five "large aircraft" to ten.
"Dynamic has the infrastructure to operate 10 aircraft and has a strong FAA compliance record," it said. "The current five aircraft restriction significantly limits financial growth and leads to costly inefficiencies in its maintenance department."
The carrier highlighted that it already has customer commitments for the use of up to 10 aircraft of which eight will be used for passenger flights and two for cargo.
The longterm objective, Dynamic said, is to introduce longhaul, low-fare scheduled service from China and other markets.
As it stands, the airline said it would be submitting a request to register the trade name (d/b/a) of Eastern Air Lines. It is recalled that Eastern Air Lines (2009) (Miami International) was absorbed into Arizona-based passenger charter specialist Swift Air (United States of America) (Greensboro Piedmont Triad International) last year.
However, access to the Eastern Air Lines branding rights will come by virtue of owner Kenneth Woolley who, in addition to owning 100% of Solitude Strategies, LLC, Dynamic's single shareholder, also controls a 38.75% stake in Swift Air.
All aircraft Dynamic currently operates - one B767-200, two -(ER)s, and two B767-300(ER)s - are dry leased from various LLCs owned by Woolley. However, the disclosure states that Woolley will be donating these leased aircraft to Dynamic in the near future, such that Dynamic will own its entire B767 fleet.
"In addition to the leased aircraft and pending Department approval of Dynamic’s request in this letter, Mr. Woolley is prepared to donate additional Boeing 767 aircraft to Dynamic," it said.
In total, Woolley has provided over USD8 million in DIP financing and more than USD50 million in aircraft and cash following the company’s emergence from Chapter 11. He is reportedly prepared to invest up to an additional USD15 million to cover any operating expenses if needed as the new aircraft are integrated into the fleet.
