Encompass Aviation has mounted a legal campaign against Surf Air for damages reaching $3.1m.
A statement from Encompass noted: “Encompass Aviation LLC filed a lawsuit today against financially distressed membership based charter broker Surf Air Inc., for whom Encompass has been acting as primary California operator since May 2017.
The lawsuit, filed in the United States District Court for the Southern District of New York, asks the court to enforce the charter service’s obligations to Encompass as specified in several operating agreements signed by the two companies last year, and also to enforce subsequent payment agreements stipulated to in the interim.
As of June 14, 2018, Surf Air owed Encompass more than $3,100,000, while engaging other operators in an attempt to keep flying while defaulting on their agreements with Encompass.
“We have been happy to serve as Surf’s primary carrier in the state of California. But we’ve come to the breaking point. Surf has repeatedly allocated its revenue on things other than paying in full for flight operations and aircraft maintenance,” said Steve Harfst, President and CEO of Encompass Aviation.
“Surf has failed to honor its obligations under its agreements with Encompass and we have been significantly damaged as a result, both by Surf’s repeated failure to pay for services rendered and by its blatantly improper attempt to walk away from our service in favor of another operator.”