Tue, Jun 19, 2012
Subsidies Paid Over Three Years To Direct Air For Worcester Operation
The Massachusetts Port Authority reportedly spent more than $1.1 million to support Direct Air, the only commercial air service operating from Worcester Regional Airport.
The airline's parent company, Southern Sky Air and Tours LLC, a charter service based in Myrtle Beach, SC, filed for bankruptcy March 15th. The move led to Direct Air passengers being stranded at multiple airports around the country. Court documents show the company had between $10 and $50 million in debt against only as much as $1 million in assets.
Internal Massport documents including e-mails obtained by the Worcester Telegram & Gazette indicate that Massport most recently paid for radio and television advertising for Direct Air. That payment was nearly $56,000 in July of last year.
But in an e-mail sent to then-state Secretary of Transportation Jefferey B. Mullan from Massport interim chief executive David Mackey just before making that payment, Mackey says that the airline is running "on a shoestring." A later e-mail outlines Direct Air's failure to make any payments to Massport, and that it also was not paying its ground handling company.
While port and state officials up to the Lt. Governor said in a recent interview with the paper that they knew the airline was struggling, they were "stunned" when the company filed for Chapter 11 protection and left travelers stranded at Worcester and other airports. They said they were "nurturing" the airline with Massport money which was matching an FAA grant.
Also: AA MD-80s, A320 Birdstrike, SWA Picketed, Randy Babbitt, STEREO Mission, Prince Harry v Poachers, ANA Dreamliners August 29 is a big day as it relates to recreational and non>[...]
Recent E-Mailing Suggests One Product... But Is Actually Something Else Altogether ANN has made much of the fact that we, as a community, need to be able to depend on one another a>[...]
The appropriate frequency to be used for Airport Advisory Service.>[...]
“we’ve reached another significant milestone. With the small UAS rule now in effect, the commercial drone industry is cleared for takeoff.” Source: AUVSI presiden>[...]
Good News, Bad News... It's ALL News As the preeminent online aviation news resource out there, the editorial staff at Aero-News sees a large number of news releases. We look at al>[...]