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: Girls In Aviation 2016, Quicksilver Across America, Heli Celebration, Russian Airline Bankruptcy, Custom Avionics Acquired, Westjet Air Center, NASA Selects Student Teams ANN>[...]
Will Supply 194 Aircraft To The Indian Air Force (IAF), Indian Navy (IN) And National Cadet Corps (NCC). Pipistrel has been selected by the government of India to equip the Indian >[...]
Demonstration Team Flew During Annual Fleet Week Celebration The Navy's Blue Angels precision demonstration team performed over the weekend in San Francisco as part of the city's a>[...]
National Aviation Hall of Fame They dreamed the dreams. They harnessed the technologies. They created a world where the sky was no longer the limit.>[...]
Issued by airworthiness authorities to correct a defect found in an aircraft type after certification.>[...]