Direct Air Bankruptcy May Leave Customers High And Dry

: Chris Lee Law Firm

  Filed under: Chapter 7

direct airHigh gas prices and a drop in consumer spending leaves Direct Air company executive with few choices to fight their financial battle. After much consideration and financial trouble, Direct Air made the decision to file for bankruptcy in March. However, Direct Air wasn’t able to restructure their debts, but instead ended up filing for Chapter 7 bankruptcy.

Current Customers

Direct Air customers became concerned after learning of the airline bankruptcy filing a few months ago. The biggest concerns held by customers regarding what would happen to any purchased tickets and member benefit plans. With little reassurance coming from Direct Air executives, many customers began filing claims against the company to ensure they would receive reimbursement for any money spent on services not rendered.

As Direct Air works to liquidate company assets and close operations, nearly $600,000 in customer claims have been filed to date. While the company is likely to be held financially responsible for reimbursing pre-purchased tickets, customers aren’t likely to receive any money until the end of the bankruptcy case, which could be as late as January 2013.


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