Massport Propped Up Marginal Airline With Over $1.1 Million | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Recent Daily Episodes

Episode Date

Monday

Tuesday

Wednesday

Thursday

Friday

Airborne On ANN

Airborne 01.16.17

Airborne 01.17.17

Airborne 01.18.17

Airborne 01.12.17

Airborne 01.13.17

Airborne Hi-Def On YouTube

Airborne 01.16.17

Airborne 01.17.17

Airborne 01.18.17

Airborne 01.12.17

Airborne 01.13.17

Tue, Jun 19, 2012

Massport Propped Up Marginal Airline With Over $1.1 Million

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.

FMI: www.massport.com, www.visitdirectair.com

Advertisement

More News

Airborne 01.16.17: Dynon/EAA STC Expands, SpaceX, Chao Coy On ATC Privatization

Also: Project Titan, Part 23 Rule, SportAv HoF, Iran Air, FL's Space Coast, Galaxy Note7 Warnings, Boeing Employees When Dynon and EAA announced that they had worked together to ob>[...]

Airborne 01.16.17: Dynon/EAA STC Expands, SpaceX, Chao Coy On ATC Privatization

Also: Project Titan, Part 23 Rule, SportAv HoF, Iran Air, FL's Space Coast, Galaxy Note7 Warnings, Boeing Employees When Dynon and EAA announced that they had worked together to ob>[...]

Gone West: Astronaut Gene Cernan

Commander Of Apollo 17 Was The Last Man To Walk On The Moon Another icon of the space program has Gone West. Apollo 11 Commander Gene Cernan passed away Monday at the age of 82, ac>[...]

Airborne 01.13.17: G650ER Record Streak, False Drone Hit, Piper Archer Sale

Also: Parrot Layoffs, CES/AMA Expo/KSMO, 737 SAIB, Piper PA-31T, John Pope, Washington State, JetBlue Disturbance Pending sanctioning from the recognizing organizations, it looks l>[...]

ANN's Daily Aero-Linx (01.17.17)

All About Clouds If you sometimes have trouble differentiating between a stratocumulus and a billow cloud, this could be a site for you.>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2017 Web Development & Design by Pauli Systems, LC