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

Airborne Unlimited-
Monday

Airborne-Unmanned w/AUVSI-
Tuesday

Airborne Unlimited-
Wednesday

AMA Drone Report-
Thursday

Airborne Unlimited-
Friday

Airborne On ANN

Airborne 11.13.17

Airborne-Unmanned 11.14.17

Airborne 11.15.17

AMA Drone Report 11.16.17

Airborne 11.10.17

Airborne-YouTube

Airborne 11.13.17

Airborne-Unmanned 11.14.17

Airborne 11.15.17

AMA Drone Report 11.16.17

Airborne 11.10.17

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 11.15.17: XCOR BK, V-22 Osprey Milestone, GAMA 3rd Quarter Stats

Also: UK Airport Cancellation, Gone West: Robert Wagstaff, EASA Certifies Bell 505, USN's 1st MQ-4C Triton This is a heartbreaker, as we were big fans of XCOR Aerospace -- which fi>[...]

Airborne-Unmanned 11.14.17: Drone Registration, AT&T's Flying COW, Pilot Charged

Also: Boeing Completes Acquisition, Drones For LAFD, DJI Seeks Transport Canada’s Help, Uber and NASA A defense authorization bill that includes a return to civilian drone re>[...]

AMA Drone Report 11.16.17: Drone Registration, Drone Journalists Jailed

Also: Terror Advisory, DRL Sim, SureFly Octocopter, Space Needle Drone Pilot, FAI-ASFC World Fly-In Expo A bill that includes a return to civilian drone registration has been inclu>[...]

AMA Drone Report 11.09.17: Commercial Drone Insurance, FAI Drone Races, DJI Quiz

Also: AR Drone Flight Sim, San Diego State Drone Lab, SkyPixel Photo Competition, AMA Regulatory Efforts More benefits are in the works for AMA members! This comes through the offe>[...]

Winter Haven, FL Airport Hosts Chinese Delegation

Group Learning About Non-Controlled Airports, GA And Seaplanes A delegation associated with the Civil Aviation Administration of China (CAAC) recently visited Winter Haven Airport >[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

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