Beijing PanAm International Academy Sued By CPA for RMB 3.49 Millions

Beijing PanAm International Academy (PIAA), due to class suspension, failed to deliver graduate pilots that China Postal Airlines paid for the training, was brought to court by China Postal Airlines (CPA). Lately, it is known that Xicheng District People’s Court made the first instance judgment on the case. In compliance with the verdict, the commission contract for training between both parties should be terminated and PIAA should return the 3.84 millions Yuan training fee as well as pay penalty to China Postal Airlines according to contract terms. In light of the charges by CPA , CPA and PIAA signed the Contract of Pilots Training on April 13, 2006 in which PIAA agreed to enlist and train 10 pilots for CPA with a total of 6.4 million training fee. Both sides agreed on the terms that 10 pilots should graduate from PIAA before October 1, 2007 and each trained pilot should obtain a commercial pilot license, a private pilot license and 4 other related certificates. But up to the lawsuit, none of the 10 pilots got the six certificates. Henceforth, CPA requested the termination of the contract and demanded PIAA to return 3.84 millions Yuan training fee and pay 3.49 millions Yuan in penalty for breaking the contract. The court found the contract signed by PIAA and CPA valid. As the trustee, PIAA failed to provide any evidence that could justify its fulfillment of the contract during the trial. Therefore, the court averred that PIAA breached the contract, thus sentenced PIAA to return 3.84 millions Yuan training fee and pay penal sum by the norm of one thousandth per day.