Who else is affected by direct air?

[ccgirl]

As I mentioned earlier, to keep prices down you could consider flying down to Orlando and driving home.

Another option is Amtrak. They have the Auto Train that you can pick up in Lorton, VA and it will take you and your vehicle to Sanford, FL.

In addition, there is just the straight passenger train from BOS to Orlando. Leaving Friday, April 13th and getting to Orlando Saturday, April 14th at 10am. Then leaving Orlando Saturday, April 21st at 1pm arriving in Boston Sunday, April 22nd at 5pm is $1422 for 2 adults and 2 children which includes a $158 discount for AAA. That is $355 a person plus transportation from the train station.

Don't know if this will help anyone else or not but I wanted to offer up some options. I feel so bad for those on Direct Air.

 

[kirs10a]

Our extended family (9) holds tickets for June 11-18 out of Springfield, IL. My SIL and I have each entered disputes vs. our credit cards. Mine gave me the timeline of 15 days if the airline doesn't dispute it (Disney Visa), but SIL was told it could take up to 60 days to get a credit!

We're far enough out that we have some time to make alternate flight plans, but I'm worried that they'll dispute saying they'll be able to provide my flight June 11. DH and I are holding off on purchasing airfare until the 15 day time period to see what happens.....

Now I'm wondering....is it 15 business days or 15 calendar days?

 

[kirs10a]

Ugh.....called CC to find that they won't offer a credit since it doesn't fall within the "no fly" time period. I feel completely misled by the rep I spoke with yesterday and basically told me I'd have a credit in 15 days. This all just makes me SICK!

 

[pigletto]

As I mentioned earlier, to keep prices down you could consider flying down to Orlando and driving home.

Another option is Amtrak. They have the Auto Train that you can pick up in Lorton, VA and it will take you and your vehicle to Sanford, FL.

In addition, there is just the straight passenger train from BOS to Orlando. Leaving Friday, April 13th and getting to Orlando Saturday, April 14th at 10am. Then leaving Orlando Saturday, April 21st at 1pm arriving in Boston Sunday, April 22nd at 5pm is $1422 for 2 adults and 2 children which includes a $158 discount for AAA. That is $355 a person plus transportation from the train station.

Don't know if this will help anyone else or not but I wanted to offer up some options. I feel so bad for those on Direct Air.

That's really nice of you to look that all up to help people out. Thank you.

 

[Lewisc]

Ugh.....called CC to find that they won't offer a credit since it doesn't fall within the "no fly" time period. I feel completely misled by the rep I spoke with yesterday and basically told me I'd have a credit in 15 days. This all just makes me SICK!

Your flight hasn't been cancelled. You're not entitled to a refund (yet). There were a lot of rumors yesterday that Direct Air filed chapter 11. The rep you spoke to yesterday didn't have the information which is available today. Direct Air offer public charter flights. Your money is in escrow.

The risk of having to book last minute airfare is a risk you assume when you book an airline like Direct Air, Spirit, Allegiant etc. Spirit might not be going out of business but they will drop a route if it's not profitable, giving refunds to passengers who are stuck booking last minute airfare.

 

[irishone21]

No reason to complain to the AG. Passengers who booked flights which have been canceled are getting refunds. Direct Air is (or was?) a public charter. Fares are deposited in an escrow account.

I'm saying was a public charter because the company may be effectively out of business. It is a public charter. They don't own, lease or operate planes. Fares they quoted weren't high enough to cover expenses including current fuel prices.

You booked them because "the price couldn't be beat". Price tickets low enough and you'll fill your planes but lose money. Direct Air didn't have a large bank account to cover losses.

Booking them for an extra trip may have made a lot of sense. Booking them for a cruise meant assuming some risk. Actually a lot of risk. Many of us always thought the question wasn't if Direct Air would go out of business but rather when.

Good luck finding airfare. I suggest you contact DCL. It's possible, but not likely, they have some consolidator tickets available for less then what you can find on your own.

No offense Lewisc, but that is not correct. People are being refunded right now by their cc companies, not Direct Air....and I know that most (including us) have to wait until our flight date has past for anything to happen. I also know of several people who have been told they are NOT getting their money back because they bought their tickets too long ago (like a year ago). Unfortunately, a refund on this one is NOT a sure thing. I'll actually be shocked if it happens. The company seems to owe a lot of money to a lot of people.....my sense is that they will file Ch.11 in the near future...who would ever fly with them again?

As I said, for quite a while, it was a great deal. However, just because we assume "some" or "a lot" of risk, as you put it, doesn't make it right the way this happened. They were still booking flights Monday night...that is just wrong! I encourage people to contact their AG so that Direct Air can not do this to anyone else.

 

[champagne27]

As someone who has used Direct Air out of Worcester in the past I just wanted to say I am so sorry and good luck to everyone affected. I never knew there was risk in booking with them - just assumed they could offer better prices because they use smaller regional airports. They were extremely convenient - how were people supposed to know they were risky .

I hope everyone is able to reschedule and still have a magical vacation.

 

[jsilvers]

Direct Air is (or was?) a public charter. Fares are deposited in an escrow account.

That's what is supposed to happen, under the public charter rules issued by the U.S. Department of Transportation. But who knows if Direct Air was actually following the rules? ("The Department is investigating the handling of that escrow account." -- http://www.chicagotribune.com/travel/takingoff/ct-taking-off-chi-guidance-offered-for-travelers-stranded-by-direct-air-20120314,0,2474593.story)

Indeed, the federal regulations for public charters prohibit flight cancellations within 10 days of the departure date, and require the operating carriers to repatriate any stranded passengers. The first regulation certainly wasn't followed by Direct Air, any it appears that the second one isn't being followed by the various airlines hired by Direct Air. I suspect that DOT is going to impose some major fines ... but that doesn't help the passengers.

 

[JJ1280]

I was supposed to be on a flight tomorrow night on Direct Air out of Worcester to Florida. I'll be traveling for a family wedding. Lucky for me, my boyfriend is a pilot and I can fly standby on any flights as long as it's with his airline. However, I wanted a confirmed seat instead of waiting to get on a flight, at least getting there. This is what I get for booking a confirmed seat! Needless to say, I'll be flying standby Friday morning, but at least I have an alternative as opposed to those who got stuck. The bride's family was supposed to be on my flight as well. They decided to jump in their car and drive down. This also affects a couple of my cousins who are trying to get to/from spring break. They were able to find alternate flights though. My grandparents will have to find a new flight home when they return in April. I had to cancel a car rental as I'll be flying into a different airport, so I won't need it. But thank goodness it was one where you pay once you get there, so no $$ lost. It may take a long time to get through, but if you call Direct Air and give your confirmation number, they will refund the card you paid with. Good luck to those who are trying to get home/vaca!!

 

[Lewisc]

No offense Lewisc, but that is not correct. People are being refunded right now by their cc companies, not Direct Air....and I know that most (including us) have to wait until our flight date has past for anything to happen. I also know of several people who have been told they are NOT getting their money back because they bought their tickets too long ago (like a year ago). Unfortunately, a refund on this one is NOT a sure thing. I'll actually be shocked if it happens. The company seems to owe a lot of money to a lot of people.....my sense is that they will file Ch.11 in the near future...who would ever fly with them again?

As I said, for quite a while, it was a great deal. However, just because we assume "some" or "a lot" of risk, as you put it, doesn't make it right the way this happened. They were still booking flights Monday night...that is just wrong! I encourage people to contact their AG so that Direct Air can not do this to anyone else.

My comment was to the poster I quoted. Their flight was in June and hasn't been canceled (yet). I don't think they'll fly again. The AG is aware of what's going on. Really no reason to waste the postage turning them in.

That's what is supposed to happen, under the public charter rules issued by the U.S. Department of Transportation. But who knows if Direct Air was actually following the rules? ("The Department is investigating the handling of that escrow account." -- http://www.chicagotribune.com/travel/takingoff/ct-taking-off-chi-guidance-offered-for-travelers-stranded-by-direct-air-20120314,0,2474593.story)

Indeed, the federal regulations for public charters prohibit flight cancellations within 10 days of the departure date, and require the operating carriers to repatriate any stranded passengers. The first regulation certainly wasn't followed by Direct Air, any it appears that the second one isn't being followed by the various airlines hired by Direct Air. I suspect that DOT is going to impose some major fines ... but that doesn't help the passengers.

The 10 day notice rule doesn't work if the charter operator doesn't have the money to pay for fuel or to pay money due the contracted carriers.

Does anyone really think Direct Air will be flying ever? Do we think they'll be any money left to pay a DOT fine? Refund tickets. Fuel. Money due airlines. Money due airports. Major fines. Do you even think the carrier will be in business long enough to even respond?

 

[OrangeCountyCommuter]

As someone who has used Direct Air out of Worcester in the past I just wanted to say I am so sorry and good luck to everyone affected. I never knew there was risk in booking with them - just assumed they could offer better prices because they use smaller regional airports. They were extremely convenient - how were people supposed to know they were risky .

I hope everyone is able to reschedule and still have a magical vacation.

For future reference if an airfare is dramatically lower then everything else,...it is a risk


The big cost in airlines is not the airport but paying for equipment and fuel. Smaller airports don't help there.

 

[jsilvers]

The 10 day notice rule doesn't work if the charter operator doesn't have the money to pay for fuel or to pay money due the contracted carriers.

It may not "work" (as I noted, passengers are still up a creek), but it does apply. "[T]he charter operator may not cancel the charter less than 10 days before the scheduled departure date, except for circumstances that make it physically impossible to perform the charter trip."

Do you even think the carrier will be in business long enough to even respond?

I wouldn't be surprised if Direct Air vanishes into the night. But it's insurers will still be around, as will the carriers that it hired (which apparently haven't abided by their responsibility to repatriate passengers). And DOT has the authority to fine individuals, not just companies, so if I were a senior Direct Air employee, I would be very, very worried right now.

 

[Lewisc]

It's physically impossible to fly a plane without fuel. You can't fuel up without paying. All the rules you quote apply to a viable business. There isn't much that can be done if the company is broke.

We'll find out if rules regarding escrow and bonding were followed. I wouldn't be surprised if we find out the credit card companies were (at least attempting) to monitor the situation.

It may not "work" (as I noted, passengers are still up a creek), but it does apply. "[T]he charter operator may not cancel the charter less than 10 days before the scheduled departure date, except for circumstances that make it physically impossible to perform the charter trip."

 

[Jake797]

Ugh.....called CC to find that they won't offer a credit since it doesn't fall within the "no fly" time period. I feel completely misled by the rep I spoke with yesterday and basically told me I'd have a credit in 15 days. This all just makes me SICK!

I am in the same boat with my in-laws. I'm thinking that I will just book a flight out of STL rather than wait until DirectAir announces that they will not fly again.

 

[mousey]

Direct Air received a lot of benefits for setting up shop in Niagara Falls, NY five years ago. There was no reason to suspect that they would pull a stunt like cancelling all flights for 2 months. The legislators are involved now and this is a big black eye for the region, so I think there will be reimbursement. I also think Direct Air is done! They were still selling tickets the night that they stopped their operation. If that wasn't criminal, I don't know what is! So sorry to all the stranded passengers who are trying to get on vacation, come home from vacation, or anyone having trouble getting their money back!

 

[DebbieB]

Direct Air received a lot of benefits for setting up shop in Niagara Falls, NY five years ago. There was no reason to suspect that they would pull a stunt like cancelling all flights for 2 months. The legislators are involved now and this is a big black eye for the region, so I think there will be reimbursement. I also think Direct Air is done! They were still selling tickets the night that they stopped their operation. If that wasn't criminal, I don't know what is! So sorry to all the stranded passengers who are trying to get on vacation, come home from vacation, or anyone having trouble getting their money back!

This is typical when a small airline goes under, it's sudden. It's not like a major airline where banks will float them money until they can get back on their feet under Chapter 11. I'm sure they were scrambling to find a way to keep flying, they were not going to cut off their revenue stream by not selling tickets. They are probably looking for an investor but have no choice but to cancel flights, they have no fuel. I've always said it's risky booking these small airlines with limited schedules. We've seen it before, poof they're gone. With fuel rising fast, they may not be the last.

 

[quirty30]

That's what is supposed to happen, under the public charter rules issued by the U.S. Department of Transportation. But who knows if Direct Air was actually following the rules? ("The Department is investigating the handling of that escrow account." -- http://www.chicagotribune.com/travel/takingoff/ct-taking-off-chi-guidance-offered-for-travelers-stranded-by-direct-air-20120314,0,2474593.story)

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.

 

[jsilvers]

It's physically impossible to fly a plane without fuel. You can't fuel up without paying.

And paying isn't physically impossible. Your reasoning would create a massive loophole in DOT's requirements. Fortunately, that's not how it works. (But again, that admittedly won't help the passengers who are stranded now.)

 

[goofy4tink]

No offense Lewisc, but that is not correct. People are being refunded right now by their cc companies, not Direct Air....and I know that most (including us) have to wait until our flight date has past for anything to happen. I also know of several people who have been told they are NOT getting their money back because they bought their tickets too long ago (like a year ago). Unfortunately, a refund on this one is NOT a sure thing. I'll actually be shocked if it happens. The company seems to owe a lot of money to a lot of people.....my sense is that they will file Ch.11 in the near future...who would ever fly with them again?

As I said, for quite a while, it was a great deal. However, just because we assume "some" or "a lot" of risk, as you put it, doesn't make it right the way this happened. They were still booking flights Monday night...that is just wrong! I encourage people to contact their AG so that Direct Air can not do this to anyone else.

People that have had flights actively cancelled are getting refunds...through their credit card companies. And you're correct....if you booked a long time ago, you may risk not getting all your money back. In that situation, you are going to have to wait for DirectAir to refund, not the cc company...and that's going to be iffy.

DirectAir 'says' they'll be flying in May...I tend to doubt it. I can't imagine that they are going to come up with incredible operating strategy that will pull them out of this. And yet again, Worcester Mass is left with nada!!! It was so incredibly convenient to fly out of there...close to home, cheap parking. Ah well...maybe JetBlue will actually put in some flights there down the road.

 

[Lewisc]

And paying isn't physically impossible. Your reasoning would create a massive loophole in DOT's requirements. Fortunately, that's not how it works. (But again, that admittedly won't help the passengers who are stranded now.)

It is if you don't have any money. I guess the executives of Direct Air could try robbing banks. 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. Do any of us really think Direct Air is going to find investors? Find a buyer? Every fly another flight?

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. The rules would have stopped Direct Air from cancelling flights without proper notice, if they were a going concern.

We'll see as refunds get processed if the rules regarding escrow requirements need to be improved.

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. Above money owed to local airports? Above money owned to the companies DA was chartering from? Above money owed for fuel? Above money owed to employees? Passenger refunds? Do you think they'll ever be collected.

Assuming we're right and DA is history DOT fines are probably a waste of time. Certainly won't help passengers.

edited What's needed is for the DOT (or whatever gov't agency is responsible) to put a fork in Direct Air so passengers booked past May 15 can get refunds and make other plans. Those passengers now have to book other flights before they get a refund. They also face the, increasingly small, risk the Direct Air will find enough money to try a few more flights. Passengers booked on those flights might not be entitled to refunds.