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12 23Thu04242014

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Court orders Fly Guam to pay Servisair

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A FEDERAL court in New York has ordered Fly Guam to pay Servisair LLC, a Delaware-based fuel management company, $1.8 million in unpaid balance on the contract for services rendered to the airline.

In a Feb. 26 order, Federal Judge Arthur Spatt of the Eastern District of New York issued a default judgment against Fly Guam, which had its last regularly scheduled flight on Guam in November 2011.

Fly Guam entered into a $4.8 million contract with Servisair in February 2011 to manage fuel purchases for the airline.

Fly Guam had paid only $3.15 million and has a remaining balance of $1.67 million, according to the lawsuit filed by the Delaware company.

Fly Guam made its maiden flights to Palau, Nagoya and Taipei in August 2011, but shortly after expanding its flights to HongKong and Saipan, the airline stopped its operations for unclear reasons.

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