Direct Air Files for Chapter 11 Bankruptcy
17-Mar-2012 Direct Air, based in Myrtle Beach, SC, filed for Chapter 11 bankruptcy protection yesterday in the U.S. bankruptcy Court, Massachusetts Division.
A Washington, D.C- based investor group purchased a majority interest of Direct Air in September 2011. The operating management team of the previous owners was left in place by the new majority owners until earlier
this week.
Despite the investment of additional working capital into Direct Air in the preceding months by the new majority owners, rising fuel costs and other operating expenses pushed the charter company into a severe operating loss position. As result of its financial difficulties, Direct Air was compelled to seek bankruptcy protection in an effort to reorganize the business. Direct Air's previous operating management has been replaced.
Direct Air is deeply apologetic for the inconvenience caused to its customers, the communities it serves, and its dedicated employees serving passenger needs everyday and Direct Air hopes to emerge from bankruptcy as soon as possible.