March 13, 2012

What next?

Running a business is not easy and I feel bad for anyone who has to close the doors.  That said this (sorry Harry T) reminds me of TiNovo selling gift certificates the week before they go under.   Right up to the very end Direct Air was selling Family Ties vouchers and Way2Go membership, which will be completely worthless after the bankruptcy case settles.

Let me stress again as a public charter Direct Air has to esgrow monies from ticket sales, so these monies should be safe.   Monies for vouchers and club membership went right into their general operating account.   These guys had to know that cash was running low, so low that they could not pay for fuel, but they keep selling worthless memberships?  This has to be criminal!!  There business practices the past two months was nothing less then one last "grab for cash"!

CALL ALLEGIANT AIRLINES!!!!!

Posted by Bill Randell at 8:25 AM

4 comments:

Neil said...

We're going to Orlando in October. I considered flying out of ORH but ultimately, decided that I couldn't be sure that Direct Air would be up to the task with 2 small kids - I wasn't even considering that they might not be around at all, just that their reputation was subpar.

Thanks Bill for keeping us updated on what these characters are doing.

8:36 AM
Jahn said...

Makes me wonder if any small local oil companies may be hurting after due to lack of volume this warm winter, even those that havent pre sold oil delivery at a fixed price per gallon for winter delivery.

Bill call Martha Croakley as he just loves this kinda stuff. Get her mug in the T&G.

9:56 AM
Bill Randell said...

Exactly Jahn

THink about here. Here they are selling vouchers for tickets at a ridiculously low price and the price of fuel explodes.

Recipe for disaster. No different then locking an oil company in at a low price and the price of oil takes off. The oil company goes out of business.

Bill

10:02 AM
Steve Foley said...

From the Direct Air Website:

Direct Air finds it necessary to suspend flight operation from Tuesday, March 13, 2012 until May 15, 2012. This decision was made to address operational matters. We are currently evaluating strategic alternatives for Direct Air.

Direct Air is committed to our passengers, employees, and the communities we serve.

Passengers holding reservations for Direct Air flights departing between Tuesday, March 13, 2012 and Tuesday, May 15, 2012 are directed to contact their credit card company to arrange for a refund.

Please check back here for more details.

Very Truly Yours,
Direct Air

12:55 PM

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