MIAMI (Business Wire EON) April 29, 2008 -- ASTAR Air Cargo (ASTAR) filed a lawsuit yesterday in Miami-Dade County Circuit Court against Fort Lauderdale, Florida-based GA Telesis, accusing the commercial aircraft broker and leasing company of fraud, breach of contract, and breach of duty of good faith and fair dealing over the sale of Boeing 727-200 cargo aircraft N751DH to ASTAR. GA Telesis is the broker/agent for the other named Defendants: Aviation Refinancing Transaction LLC, ART 22982 LLC and ART 21985 LLC.

ASTAR's executives have been directly involved in the lease and purchase of hundreds of aircraft, and we have never experienced a more outrageous breach of business ethics and standards of dealing.

ASTAR alleges that GA Telesis and the other parties acted in bad faith, reneging upon their agreement to sell the aircraft to ASTAR weeks after reaching an unconditional and irrevocable deal. ASTAR also claims the defendants lied about their commitment to closing the transaction on the agreed-to date and sought to get a higher purchase price for the aircraft.

“This is an example of bad actors acting badly with malicious intent, and GA Telesis has failed to meet the standard of even a modest level of integrity,” said Stephen Dodd, ASTAR’s managing director for corporate finance. “ASTAR’s executives have been directly involved in the lease and purchase of hundreds of aircraft, and we have never experienced a more outrageous breach of business ethics and standards of dealing.”

ASTAR has operated the aircraft under lease since 2002 and is asking the Court to order an immediate sale of the aircraft pursuant to the terms of the original agreement. ASTAR will also ask the Court to award punitive damages from the Defendants in an amount to be determined at trial.

ASTAR is being represented in the litigation by Hogan and Hartson of Miami and Troutman Sanders of Atlanta.

About ASTAR Air Cargo, Inc.

ASTAR Air Cargo, Inc. is the operating subsidiary of ASTAR Air Cargo Holdings, LLC. ASTAR Air Cargo is a licensed U.S. air carrier operating a fleet of 44 aircraft from its operational hub in Wilmington, Ohio. The airline provides cargo scheduled and charter services on a contract basis for the DHL Express network and charter services on a contract basis for other customers including the U.S. military and the United States Postal Service. ASTAR Air Cargo is a participant in the United States Civil Reserve Air Fleet program supporting our national defense. Additional information can be found at www.astaraircargo.us.

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astar cargo ga_telesis aircraft breach contract miami court defendants lawsuit

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