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 08.31.15

Airborne 09.01.15

Airborne 09.02.15

Airborne 09.03.15

Airborne 08.28.15

Airborne Hi-Def On YouTube

Airborne 08.31.15

Airborne 09.01.15

Airborne 09.02.15

Airborne 09.03.15

Airborne 08.28.15

EAA/ANN AirVenture Innovation Preview

AIP-#1 Vimeo

AIP-#2 Vimeo

AIP-Part 1 YouTube

AIP-Part 2 YouTube

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

Aerospace Update: Swiss Team Wins Gordon Bennett Balloon Race

The Swiss Team of Kurt Frieden And Pascal Witprächtiger Won The 59th Coupe Aéronautique Gordon Bennett Competition The Coupe Aéronautique Gordon Bennett, the FAI>[...]

ANN's Daily Aero-Linx (09.03.15)

NASA JPL Education Site The Education home page for NASA JPL is the perfect place for parents and teachers to find activities for a budding rocket scientist, engineer, technician, >[...]

ANN's Daily Aero-Term (09.03.15): Magnetic Variation

Difference between true north and magnetic north, varying with position; magnetic variation drifts with time.>[...]

Aero-News: Quote Of The Day (09.03.15)

“We want this to be a gateway to aviation, and for the existing industry to embrace these craft.” Source: AUVSI president and CEO Brian Wynne.>[...]

Woman Who Suffered From Septic Shock Skydives For First Time

Jump Follows Amputation Of Both Hands And Feet, Done To Raise Awareness Of The Condition A woman in Oklahoma who lost both hands and feet to septic shock last year has done somethi>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2015 Web Development & Design by Pauli Systems, LC