Baltia loses $22.6 million lawsuit to Logistic Air
USGlobal Airways, formerly known as Baltia Airways, was sentenced to pay $22.6 million reparation to the U.S., Nevada-based Logistic Air after a breach of contract for the lease of four Boeing 747 Pratt and Whitney engines, including charges, fees and interest.
Baltia, which rebranded into USGlobal Airways in 2017, is the oldest “startup airline” in the world. The airline was created in 1989 (four years before Qatar Airways) by businessman Igor Dmitrowsky with the ambition of offering transatlantic flights from JFK, New York to Saint Petersburg, Russia.
After years of struggle of acquiring an aircraft and certification from authorities, Baltia is now (in)famous for never operating a single flight in its 29 years of existence.
The four Pratt & Whitney JT9D-7A engines leased by Logistic Air were supposed to be installed on the 35 year-old Boeing 747-200 N705BL that Baltia acquired engine-less in 2010. Two years later, the plane was sold in Malaysia and scrapped, ending the lease of the engines.
However, it seems that the terms of the lease were not respected as the lessor claimed $8.9 million dollars before the Nevada district court. USGlobal Airways failed to contest the claim and was condemned by default, with the sum amounting to $22.6 million as it includes charges, fees and interest.
Baltia since has acquired a second Boeing 747-200 registered as N706BL (with engines this time). The plane was parked for a while at Willow Run Airport (YIP), near Detroit, and displayed new livery during the Thunder Over Michigan Air Show 2014 sponsored by Baltia.
Nowadays, the plane is seemingly stored somewhere in Michigan, US. As for the airline, it recently announced trying to complete its financial statements that were not updated since the first quarter of 2016. In June 2018, the United States Securities and Exchange Commission revoked USGlobal ability to offer stocks.
And still no scheduled flights on the horizon...
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