March 17--The company that operates DirectAir, which abruptly canceled all flights and suspended operations early this week, now has filed for bankruptcy protection.
Southern Sky Air & Tours LLC, of Myrtle Beach, S.C., filed for Chapter 11 protection from creditors in Massachusetts. It listed debt of $10 million to $50 million, with just $500,000 to $1 million in assets.
DirectAir abruptly canceled many of its flights Monday, then announced Tuesday that it was suspending operations until May 15. Its schedule included two weekly round trips between Toledo and Punta Gorda, Fla. -- on Mondays and Fridays -- before the shutdown.
Monday's Toledo flights operated, but many other routes did not, stranding passengers in airports. The airline primarily flew between low-traffic northern airports and southern vacation destinations.
"DirectAir is deeply apologetic for the inconvenience caused to its customers, the communities it serves, and its dedicated employees serving passenger needs every day," DirectAir said in a statement posted Friday on its Web site.
The airline said that despite additional capital provided by new investors since September, "rising fuel costs and other operating expenses pushed the charter company into a severe operating loss position."
Ticket holders were instructed to contact their credit-card companies to obtain refunds. The U.S. Department of Transportation said travelers also may submit claims against a $200,000 bond Southern Sky Air & Tours was required to post and said it is investigating whether the carrier properly maintained an escrow account for passenger fares as required by law for air-charter companies.
Paul Toth, president of the Toledo-Lucas County Port Authority, said Friday he is not confident DirectAir will resume operations.
"They're going to have to prove to the [Federal Aviation Administration] they've got enough cash," Mr. Toth said. "They contract everything. All they own is a [reservations] booking engine."
DirectAir officials were not available to comment Friday afternoon. No one answered company phone lines, and no opportunity was provided to leave a message.
Port officials said the airline owes the agency about $30,000 in unpaid airport fees.
The port authority has offered travel-agent assistance to Toledo passengers who need to rebook travel plans between now and April 30, when DirectAir service was scheduled to end here for the season.
The Associated Press contributed to this report.
Copyright 2012 - The Blade, Toledo, Ohio
