BLOG: Direct Air, No Gas = No Go
By Jim Donovan: Some turbulence was reported for discount charter airline Direct Air and its passengers this week. The airline pulled a bit of a stunner by announcing that it was suspending operations until mid-May. This comes after reports that the carrier apparently failed to pay its fuel bill. Didn’t they realize that no gas means no go?
Direct Air serves 17 cities in the Midwest, East and South. Among its routes are Allentown to Fort Myers, Fla. News of the shut-down has now left many travelers trying to figure out alternative transportation.
The Department of Transportation has put together a fact sheet to help travelers. Click: http://www.visitdirectair.com/pdf/dot.pdf
Direct Air has filed for Chapter 11 bankruptcy protection, just days after the public air charter abruptly canceled flights.
The company filed for Chapter 11 bankruptcy protection Thursday in the U.S. Bankruptcy Court, Massachusetts Division, citing financial difficulties from rising fuel and operating costs.
Company officials said in a statement Friday that the carrier had been in a “severe operating loss position” despite a recent injection of working capital from new majority owners.