Who else is affected by direct air?

[phred52]

All this reminds me back in the early 80's when I got stuck in Athens when my charter airline went belly up. (long since forgotten the name).

The lesson I learned from that fiasco was to ALWAYS always ALWAYS travel with a credit card with a high enough unused limit to get yourself back home and pay for lodging & meals until you get there. Those 3 extra days in Athens were not cheap, but at least I was safe, well fed and ~knew~ I would get home eventually.

 

[eeyoresmom]

Thank you to those who suggested I try to get a refund from Priceline for my car rental. They DID refund my money!

 

[jsilvers]

It's not really a loophole. An airline which doesn't have enough money to follow DOTs requirements can't expect to stay in business.

Direct Air could have chosen not to wait until the last minute to when it realized there was trouble brewing. It wasn't "physically impossible" to conduct the flights, as you suggested. Indeed, DOT dealt with a similar matter just last year, and assessed a fine of $100,000. See http://www.regulations.gov/contentStreamer?objectId=0900006480edcd3c&disposition=attachment&contentType=pdf. If DOT goes after Direct Air, it isn't getting off on a technicality.

DOT rules don't work when an airline runs out of money and closes up shop. You can't get blood out of a stone.

True enough; as I noted, the passengers are still up a creek. But I would not be surprised if DOT initiated an enforcement case to make an example of both Direct Air and its principal employees. Even if Direct Air is a goner, the key employees can be held jointly liable for the fine and banned from working in the industry. It's happened before. See, for example, http://www.regulations.gov/contentStreamer?objectId=0900006480e7a7c0&disposition=attachment&contentType=pdf.

Put it a different way. Any fines assessed by the DOT will be added to the list of obligations presented to a bankruptcy court. I don't know where they are in priority.

I suspect that they don't receive any priority, so any recovery would depend on what assets remain. But I can tell you that DOT can and does assess fines against bankrupt carriers - again, presumably to make an example of them. A recent example - http://www.regulations.gov/contentS...e701b3&disposition=attachment&contentType=pdf.

 

[trina830]

The May 15th date is no longer called out on their website, and reading the document at http://airconsumer.ost.dot.gov/cessations/Direct Air Fact Sheet.doc (hopefully I can post the link, if not, go to the Direct Air website and click through from there), it seems that everyone can apply for refunds now. Our flight was scheduled for July 12 and I am going to call the CC company today.

 

[CapeCod95]

The May 15th date is no longer called out on their website, and reading the document at http://airconsumer.ost.dot.gov/cessations/Direct Air Fact Sheet.doc (hopefully I can post the link, if not, go to the Direct Air website and click through from there), it seems that everyone can apply for refunds now. Our flight was scheduled for July 12 and I am going to call the CC company today.

Trina830 - Your post had very important updated info.

Here's why, two-days ago Chase Visa told me I would have to wait until the day after my reservation (my direct air fly date) and once they didn't perform Chase could then credit my visa account.

Now the US Dept of Transportation, Office of the Secretary of Transportation is saying that Direct Air DOES NOT have the authority to restart operations on May 15, 2012.

When I called Chase Visa (Disney Visa of course) a short time ago, they told me that based on these new developments they could issue an immediate credit. I'm pleased i'm getting my money back timely but like everyone effected, I've spent the past 72-hours making new travel arrangements (and paying through the nose).

I am now an expert on the Eastern seaboard transportation system in the United States - I know more about buses, trains and regional airports then I ever care to. Good luck to everyone in obtaining refunds and persuing alternative transportation.

 

[TwiddleDeeTwiddleDum]

Just wanted to post how sorry I am for those impacted by this. My sympathies, we had a similar experience in 2007 or 08 with the Skybus, a low fares carrier that went belly up.

We had literally booked & paid for a trip one night and the very next morning the news broke they'd be canceling all flights. I was so mad they had the gall to take money from people less than 24 hours prior to this announcement. They too left passangers stranded & although there was no official reason (bankruptcy) I immediately called my credit card company to dispute the charge.

Let me encourage you to not take no for an answer if you've been screwed out of your money. Make sure you keep goods notes & document everything you do in trying to get your money back, and don't wait either. Granted I had just had my credit card charged so it was probably easier for me to dispute, but fact was my flight wasn't for many months away after I had paid. I pointed out to my credit card company that they were going to obviously be unable to deliver what they had charged my card for, offered to e-mail the article, send them a link, whatever they needed to confirm &/or verify my story. They disputed the charge & refunded my payment immediately. I was told by my bank they have some sort of an escrow to make these kinds of payments and that they would go ahead and file the claim for the refund as a group, for not only myself but the other customers they had that were taken advantage of.

So don't give up, don't roll over and most importantly, don't delay making those phone calls and starting an audit trail to secure your hard earned cash back. Good luck - the following post is an excellent resource.

P.S. and yes, I did rebook my trip with another carrier even before I knew the outcome, I wasn't going to sit by and have them further ruin my trip not knowing if they'd fulfill their obligation to provide service or not. You just have to look at it as a loss and hope for the best - but stick with it and don't expect anyone else to worry about you getting your money back but you!

There's also some useful info in that article, which I will copy and paste here:

Obtaining a Refund

Consumers affected by Direct Air's cessation of service who are due a refund need to be able to prove to the escrow bank and surety bond company that they purchased charter air transportation or an air charter tour package from Direct Air. Documents that may accomplish that might include a Direct Air receipt or invoice, or possibly the consumer's credit card purchase record.

Under Department rules, consumers may request a refund from Direct Air by writing to the company at 1600 Oak Street, Suite B, Myrtle Beach, FL 29577, with copies sent to the company's escrow depository bank, Valley National Bank, 1455 Valley Road, Wayne, NJ 07470, and to the holder of its surety bond, Platte River Insurance Company, Alejandro Navarro, Attorney-in-Fact, 700 A Lake Street, Ramsey, NJ 07446. Claims made under the surety bond must be made within 60 days of the date of the originally-scheduled return air transportation. Claims are limited to the amount paid by the consumer for the charter air transportation or air charter tour package.

Credit and Debit Card Refunds

Customers who paid Direct Air by credit card may be entitled to a credit from their credit card company under the Fair Credit Billing Act. Write to your credit card issuer, being sure to state your account number. Enclose a photocopy of your credit card statement, if you have received one, and a photocopy of your ticket, itinerary or receipt if possible, or indicate the price of the transportation and the date it was purchased. State that Direct Air has ceased operations, that you will not receive the product that you charged to your account (i.e., the comprehensive tour), and that you are requesting a credit pursuant to the Fair Credit Billing Act.

The credit card issuer must receive this notice no later than 60 days after the date that you received the first monthly statement that listed the Direct Air charge, although credit card companies sometimes waive this deadline for future transportation. If you have a paper ticket or other evidence of your transportation, some credit card issuers may ask for the original unused ticket or other documentation. If this is requested, keep a photocopy and send the original by certified mail. Do not send the original documentation unless it is requested. However, it would be a good idea to enclose a copy of any confirmation or itinerary sheet that you may have received.

There are no federal protections for debit card purchases of the type described above for credit cards. However, some debit card issuers voluntarily provide some or all of those protections. If you paid by debit card, check with your debit card issuer regarding your refund rights.

Copyright © 2012, Chicago Tribune

I'm not affected by this, but I can't help but feel bad for those of you who are.

 

[HeatherC]

I just got another email from Direct Air. It basically said they are ceasing operations and to contact your credit card company for a refund.

Makes me feel better about getting the refund if they are telling us to do this and not disputing it.

Anyone else get the email?

 

[pigletto]

I just got another email from Direct Air. It basically said they are ceasing operations and to contact your credit card company for a refund.

Makes me feel better about getting the refund if they are telling us to do this and not disputing it.

Anyone else get the email?

I did. I got it twice today. Presumably because I have two sets of flights. One was in April and I was due a refund under the initial suspension of service. Another set of flights are for August and I was waiting to see what happened to their services after May15th to file a claim on those.

I called my credit card company with this updated information and they are now more aware of the situation that when I initially called on Tuesday when this news broke.
The protocol to follow is still the same. I am to send in my receipts, credit card statements showing the charge, and copies of the relevant statements from the Department of Transportation on how to proceed with a refund.

While I was not given a 100% answers to my inquiries, I was told today to follow this procedure, and "we'll get you all fixed up with a refund".

My advice again to anyone calling their credit card company is to have as much info as possible handy before you make the call. This may not be a situation that the rep who handles your call is familiar with and it goes much smoother if you can read them the email and quote the DOT statements.

Good Luck to everyone and let me say to each and every one of you that while we've learned a valuable lesson, I am so pleased to see what a helpful and calm thread this has been.

 

[jsilvers]

I just got another email from Direct Air. It basically said they are ceasing operations and to contact your credit card company for a refund.

Makes me feel better about getting the refund if they are telling us to do this and not disputing it.

Although that suggests Direct Air was not escrowing payments as required by federal law (i.e., because otherwise refunds could be paid from the escrow account). That's bad news for customers who didn't pay by credit card.

 

[focusondisney]

The Buffalo News is reporting today that DirectAir owes the Niagara Falls Transit Authority (operator of NF airport) $88,000. Can't imagine how much they must owe in total if that's the figure for just one airport.

 

[kirs10a]

Based on the removal of the May 15th date and the words "ceased operations", my dispute has now been filed and the credit card company (Disney Visa) does not anticipate any issues crediting back my account. The credit should show in 2 days....although there is still 60 days for Direct Air to dispute the charge. The rep I spoke with indicated that since I've received the email (twice) today, it would be very difficult for them to argue that they could deliver the service.

I'll be booking alternate airfare tonight.

 

[minniemomof3]

I got the same email. I`m sending a copy of my flight confirmation, copy of my Amex statement, print out from their website and the email I received today to my CC company first thing in the morning. My only concern is that I bought the tickets in November, outside of the 60 day window. I really hope that doesn`t make a difference.

Has anyone ever received a refund from Amex over a consumer dispute, I wonder how long the process takes. I was told once they open the dispute they will send me a release and assignment claim form. It sounds like a lengthy process.

 

[minniemomof3]

Just received another email from Direct Air. This one is worded a little differently, but basically stating if you haven`t started your travel to contact your credit card company for a refund.

 

[pigletto]

I got the same email. I`m sending a copy of my flight confirmation, copy of my Amex statement, print out from their website and the email I received today to my CC company first thing in the morning. My only concern is that I bought the tickets in November, outside of the 60 day window. I really hope that doesn`t make a difference.

Has anyone ever received a refund from Amex over a consumer dispute, I wonder how long the process takes. I was told once they open the dispute they will send me a release and assignment claim form. It sounds like a lengthy process.

I'm dealing with Mastercard, not Amex, however from what I was told the credit cards company can "elect" to work past the 60 days dispute period with you, and that is one issue I will push very hard on. This is still services not rendered and for flight travel the 60 day window doesn't work. They have an option to waive that rule in this case, and I am expecting they will. My other set of flights will be fine as I purchased them last week.
I'll update the thread if I find out anything useful but I am not expecting to see a refund really quickly. I'd say if I fax it in tomorrow I will give it a few days to make sure it was received and maybe a week to process before I call to check on it again.

 

[Lewisc]

Although that suggests Direct Air was not escrowing payments as required by federal law (i.e., because otherwise refunds could be paid from the escrow account). That's bad news for customers who didn't pay by credit card.

Direct Air is telling passengers who paid with a debit card or with cash to file a claim with the escrow bank.

you paid by cash or debit card, please call 1-855-888-8090 or see the detailed instructions for filing a claim with the escrow bank and securer contained in the DOT Notice.

This merely suggests the escrow bank might find it easier if the credit card companies did the legwork for them.

We have no idea if Direct Air was properly handling escrow. The claim procedure doesn't give us any insight.

edited to add I'm not really disagreeing (much) with jsilvers. The DOT is investigating how Direct Air handled the escrow account. It's certainly possible irregularities will turn up. My point is nothing has been proven.

People are told to make a credit card charge back, if possible. It's a lot easier then filing a claim directly with the escrow bank.

 

[MapleGirl]

We had flights on Direct Air for our trip April 21-28, Worcester to Sanford. I also had a great deal on a SUV rental out of Sanford. Now I'm scrambling trying to find good and cheap flights from Boston or Providence to Orlando. It going to cost so much more. Lesson learned.

 

[Lewisc]

We had flights on Direct Air for our trip April 21-28, Worcester to Sanford. I also had a great deal on a SUV rental out of Sanford. Now I'm scrambling trying to find good and cheap flights from Boston or Providence to Orlando. It going to cost so much more. Lesson learned.

I'd wait to cancel my SUV rental. I suggest, after you book flights, contacting the agency and explain why you need to modify your reservation. Ask if you can keep your current rates. Even if they say no they may still be able to give you a better rate then what's available on their website.

Forget about "cheap" flights. Just hope for a price you can live with.

 

[JoeCathyAngelina]

We had flights on Direct Air for our trip April 21-28, Worcester to Sanford. I also had a great deal on a SUV rental out of Sanford. Now I'm scrambling trying to find good and cheap flights from Boston or Providence to Orlando. It going to cost so much more. Lesson learned.

We had the same plan for the 3 of us during 4/14-4/21. Directair Worchester to Sanford, $507 non-stop, $49 parking for the week at the airport, $192 Avis Ford Escape for the week, $748 total Transportation cost.
Now, Kayak and all are showing $700-800 airfare for a single ticket with midnight landings at Sanford and daybreak departures from Sanford on 6 to 8hour flights, that's absurd.
Rather than going through the TSA (Transportation System Absurdity), Spending 10-12 hours at airports and on airplanes; with a cost of about $3,000, we're going to our backup plan.
The backup plan is our 22 hour road trip, about $500 for gas ($3.75/gallon), $50 for tolls, $550 total Transportation cost.
We drove in '04 ($1.64/gallon) and '07 ($2.80/gallon) because of the absurd airfare; it looks like we're using the backup plan again this year.
Hope for the best, good luck all,
Joe


Our last road Trip to WDW started Friday the 13th of April 2007, at 3:45 pm in our 2006 Chevy Trailblazer:

Destination, Miles, Total Miles from Boston, Time

Leaving, Boston to Walt Disney World: Friday, 4/13/07, 3:45pm
1, Boston to New Jersey 208 208 7:49 PM
2, N J to Laurel MD 219 427 11:44 PM
3, MD to Rocky Mt NC 250 677 3:36 AM
4, NC to Manning SC 219 896 7:00 AM
5, SC to Kingsland GA 226 1,122 10:30 AM
Arrived, GA to WDW 203 1,325 2:00 PM

Started, Friday, 4/13/07 3:45 PM
Finished, Saturday, 4/14/07 2:00 pm
A 22 hr trip with 5 stops along the way down
63 gallons of gas, $175 for the gas, 21 mpg


The Trip Home started at 9:45 AM, Saturday, April 21,2007
Destination, Miles, Total Miles from WDW, Time

Leaving Walt Disney World to Boston: Saturday, April 21st 9:45 AM
1, WDW to Kingsland Ga 194 194 12:44 PM
2, GA to Manning SC 226 420 4:16 PM
3, SC to Rocky Mt. NC 218 638 7:42 PM
4, NC to Aberdeen MD 292 930 12:26 AM
5, MD to Newark NJ 170 1,100 3:27 AM
Arrived, NJ to Boston, MA 246 1,346 7:30 AM

Started, Saturday, 4/21 9:45 AM 0 Miles
Finished, Sunday, 4/22 7:30 AM 1346 miles
A 22 hr trip with 5 stops on the way home
62 gallons of gas $175 for the gas 21 mpg

Total miles 2,671, about 21 mpg, about 70 mph
Total gas 125gallons $350
Total Tolls $50

 

[CapeCod95]

We had flights on Direct Air for our trip April 21-28, Worcester to Sanford. I also had a great deal on a SUV rental out of Sanford. Now I'm scrambling trying to find good and cheap flights from Boston or Providence to Orlando. It going to cost so much more. Lesson learned.

Hi...I was in the same boat. I ended up booking Southwest Boston to Tampa- my airfare cost doubled but TAmpa is only about an hours drive to Orlando.

You might want to check Amtrak. They have trains from Boston to Orlando. I was looking at one from Providence to Orlando....that goes Providence to NY Penn Station then to Orlando (26 hrs from start to finish) and for a family of 5 it was $1490 roundtrip with a AAA discount for another $200 each way you could add a sleeping car for 2. Not a bad option for those hosed by Direct Air.

 

[MapleGirl]

Hi...I was in the same boat. I ended up booking Southwest Boston to Tampa- my airfare cost doubled but TAmpa is only about an hours drive to Orlando.

You might want to check Amtrak. They have trains from Boston to Orlando. I was looking at one from Providence to Orlando....that goes Providence to NY Penn Station then to Orlando (26 hrs from start to finish) and for a family of 5 it was $1490 roundtrip with a AAA discount for another $200 each way you could add a sleeping car for 2. Not a bad option for those hosed by Direct Air.

Thanks. I'm going to check this out. Can you tell me more about your flights?

I really like the idea of flying to Orlando via Southwest (found $200 flights that are fine) then taking the train with a roomette back. Is that what you were able to add for only $200? When I added it the cost was an additional $529. Did you use a code other than the drop down box for the passengers?