Direct Air - History

History

On November 14, 2006, Direct Air announced nonstop service from Myrtle Beach to Newark, Niagara Falls, and Plattsburgh, New York. On March 7, 2007, Direct Air (Myrtle Beach Direct Air at the time) started flying. The flights were being operated by Sky King, Inc. on Boeing 737-200 aircraft until May 14, 2007 when Direct Air ended its relationship with Sky King, Inc.

Direct Air's flights were then operated primarily by Xtra Airways and Sky King, Inc. Boeing 737-400 aircraft. Occasionally, especially during peak travel periods, additional other operating carriers and aircraft types are used. These have included USA Jet, Dynamic Airways, Vision Airlines, and Miami Air.

On March 12, 2012, Direct Air cancelled all of their charter flights throughout the United States. Passengers were initially not given reasons for the abrupt cancellations. On March 13, 2012, a statement issued by Marketing Manager, Ed Warnek, indicated that flights would resume on Wednesday, March 14. Flight cancellations were attributed to a missed fuel payment. Further news releases on March 13 indicate that flights will not resume until May 15 at the earliest. On March 15, the U.S. Department of Transportation issued a statement indicating that "The company has announced that it intends to restart operations as of May 15, 2012; however, the company currently does not have authority to do so."

On March 16, 2012, Direct Air issued a press release stating that it filed for Chapter 11 bankruptcy protection. The public address on its home page was also modified to remove any indication that they would resume operation on May 15, 2012. Chapter 7 liquidation commenced on April 12, 2012.

On Aug. 21, 2012, it was announced that Direct Air had racked up $9.6 million in federal rules violations during the spring when Direct Air abruptly canceled about 350 flights according to its fillings in bankruptcy court. Between March 15 and March 24 Direct Air canceled 144 flights and another 206 flights between March 25 and April 11 that violated federal rules that are aimed at protecting passengers according to a filing made by the U.S. Department of Transportation, who regulates charter operators such as Direct Air and tallied the civil penalties Direct Air according to federal rules isn't allowed to cancel flights less than 10 days before the scheduled departure unless it is physically impossible to fly as is what Direct Air did through March 24, according to the DOT. Direct Air should have also notified passengers that were scheduled to fly on 206 flights March 25 through April 11, when Direct Air's initial chapter 11 bankruptcy case was converted to Chapter 7 liquidation, that there flights had been canceled. Federal rules require that charter operators notify each passenger in writing within seven days after the cancellation but not less than 10 days before the scheduled flight. "No circumstances of physical impossibility existed during that 10-day period that would have prevented from performing the scheduled flights," the DOT said in its administrative claim to the fines accumulated prior to the case's conversion to Chapter 7. The civil penalty of $9,625,000 could be adjusted to a higher penalty after the DOT received flight information from Sky King, one of five carriers that flew flights for Direct Air, according to the court filing. The DOT is also looking into Direct Air's handling of a required escrow account that officials say is underfunded, which is also another violation of federal law. The maximum civil penalty is $27,500 per violation per day, but the total in Direct Air's case is still unknown, according to the DOT's court filings.

On September 29, 2012, The Sun News wrote an article titled "Direct Air woes spread" and in the article that said that Sky King Inc. which is a Lakeland, Florida based company who provided planes, pilots and crews to Direct Air, had filled Chapter 11 bankruptcy reorganization. The companies president blames Direct Air for the Chapter 11 bankruptcy filing and in that filing says that Direct Air owes Sky King $1 million all this according to a report in the Lakeland Ledger. Sky King President Frank Visconti the Lakeland Ledger that Direct Air owes then a significant amount of money when they the fuel company cut Sky King off. Sky King was one of eight carries that flew Direct Airs routes for them. One of the other carriers who flew Direct Airs routes World Atlantic Airlines was fined by the United States Department of Transportation $180, 00 in July because it abruptly cancelled flights without the proper notice to passengers as the USDOT requires. The USDOT has said that is continuing to investigate Direct Air as well as it carriers. The bankruptcy court is currently sorting through Direct Air's financial records. Investigators have already determined that there wasn't as much money in escrow accounts as there should have been or that was thought to be in the account, but they are still sorting through all the details.

On October 2, 2012, it was announced Tuesday that a second carrier of the now defunct Direct Air was fined for abruptly canceling flights in March that left hundreds of vacationers and other travelers stranded. Xtra Airways was fined $300,000 by the The U.S. Department of Transportation because Xtra Airways cancelled flights less than 10 days before departure and for not ensuring a return flight for round-trip passengers as required by the DOT of such public charter flights. Xtra also violated rules that required them to be paid before operating public charted flights. Xtra stopped flying charters for Direct Air on March 13 when Direct Air failed to pay the carrier all the money it was owed for operating flights that departed on or after March 3, according to the U.S. Department of Transportation. Xtra also had received late payments from Direct Air for several flights prior to March 3, that should have prompted Xtra to look and see if whether Direct Air was following the federal rules said a DOT Aviation Enforcement Office. The DOT also requires carriers to make a reasonable effort to ensure that the charter operators they fly for are obeying the federal rules.Xtra is the second of Direct Air's eight carriers to be fined by the DOT, with the first one being World Atlantic Airlines which was fined $180,000 in late July. Another one of Direct Air carriers Florida-based Sky King, has filed for Chapter 11 bankruptcy reorganization, with the companies president telling Lakeland Ledger the bankruptcy filling was led by Direct Air's demise, as Sky King was owed $1 million by the former Myrtle Beach, South Carolina-based carrier. The trustee that is in charge of the Direct Air case told WMBF News a local news station in Myrtle Beach,South Carolina said that there could even be criminal charges filed in relation to the investigation into Direct Air's bankruptcy