19-Mar-2012 11:04 AM

Direct Air files for Chapter 11 bankruptcy

Direct Air filed (17-Mar-2012) for Chapter 11 bankruptcy protection in the US Bankruptcy Court, Massachusetts Division. The carrier stated despite the investment of additional working capital into Direct Air in the preceding months by its new majority owners, rising fuel costs and other operating expenses pushed the charter company into a severe operating loss position. As result of its financial difficulties, Direct Air was compelled to seek bankruptcy protection in an effort to reorganise the business. Direct Air’s previous operating management has been replaced. Direct Air previously suspended operating services on 13-Mar-2012 "to address operational matters". [more - original PR]

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