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DOT Fines Xtra Airways - Stuck Pax Due Direct Air  
User currently offlineLAXintl From United States of America, joined May 2000, 24311 posts, RR: 47
Posted (1 year 6 months 2 weeks 1 day 21 hours ago) and read 2143 times:

The DOT is out with a $300,000 civil fine against Xtra Airways for violations of consumer protections.

Xtra Airways was one of several carriers operating on behalf of Direct Air, a charter operator that ceased operations in March 2012.

Per DOT Aviation Enforcement office, Xtra Airways violated rules that requires carriers to have received payment prior to operating public charter flights, and prohibits cancellation of such flights at the last minute by the operator.

Xtra Airways by March 13th had failed to receive payment from Direct Air since March 3rd, failing to comply with public charter rules. The late or lack of payments by Direct Air should have promoted Xtra Airways to look into Direct Air's compliance with charter regulations, and placed Xtra Airways in a position of not having the required funds held on hand in compliance with charter arrangement prior to departure.

Press release:
http://www.dot.gov/briefing-room/dot...ated-direct-air%E2%80%99s-shutdown

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From the desert to the sea, to all of Southern California
9 replies: All unread, jump to last
 
User currently offlineNKOPS From United States of America, joined Jun 2005, 2633 posts, RR: 6
Reply 1, posted (1 year 6 months 2 weeks 1 day 2 hours ago) and read 1757 times:

Are they the only Direct Air carrier to get fined?


next flights ACY-TPA-ACY on NK, ACY-ORD-DEN-IAH-ACY on UA
User currently onlineflyinryan99 From United States of America, joined Feb 2001, 1986 posts, RR: 12
Reply 2, posted (1 year 6 months 2 weeks 1 day 2 hours ago) and read 1694 times:

Ok...so the FAA fines them, where does the money go? I would think it should go back to the passengers who were stuck. This fine does nothing for the poor people who got screwed over if they don't get some of their money back....

User currently offlineLAXintl From United States of America, joined May 2000, 24311 posts, RR: 47
Reply 3, posted (1 year 6 months 2 weeks 1 day 1 hour ago) and read 1646 times:

Quoting NKOPS (Reply 1):
Are they the only Direct Air carrier to get fined?

World Atlantic Airlines also got fined back in July.

Quoting flyinryan99 (Reply 2):
Ok...so the FAA fines them, where does the money go? I would think it should go back to the passengers who were stuck. This fine does nothing for the poor people who got screwed over if they don't get some of their money back....

This fine is not about the passengers perse, but Xtra failing to follow DOT policy in regards to not moving a plane until the money was in the bank.
They essentially flew for 10 some odd days for Direct Air without having paid. At the end of the day, if Xtra would have followed DOT policy lots more flights would have been cancelled, just not at the last minute.



From the desert to the sea, to all of Southern California
User currently onlineB727FA From United States of America, joined Jun 2011, 710 posts, RR: 0
Reply 4, posted (1 year 6 months 2 weeks 1 day 1 hour ago) and read 1603 times:

So trying, in a way to do the right thing, they get nailed. No good deed...


My comments/opinions are my own and are not to be construed as the opinion(s) of my employer.
User currently onlineflyinryan99 From United States of America, joined Feb 2001, 1986 posts, RR: 12
Reply 5, posted (1 year 6 months 2 weeks 1 day ago) and read 1569 times:

Quoting LAXintl (Reply 3):
This fine is not about the passengers perse, but Xtra failing to follow DOT policy in regards to not moving a plane until the money was in the bank.
They essentially flew for 10 some odd days for Direct Air without having paid. At the end of the day, if Xtra would have followed DOT policy lots more flights would have been cancelled, just not at the last minute.

Gotchya, I was a little confused on that. Thank you.


User currently offlineLAXintl From United States of America, joined May 2000, 24311 posts, RR: 47
Reply 6, posted (1 year 6 months 2 weeks 22 hours ago) and read 1457 times:

Actualy they did not do the right thing.

The right thing would have been stop flying a few weeks prior once they determined Direct Air was not in compliance with DOT regulations by not having the money for contracted services in the bank.

So not only was Direct Air in violations of charter regulations, Xtra as the operator continued to breach its own regulatory responsibilities, and by pulling the rug out from under the consumer at the last minute made things even worse for itself.



From the desert to the sea, to all of Southern California
User currently onlineflyinryan99 From United States of America, joined Feb 2001, 1986 posts, RR: 12
Reply 7, posted (1 year 6 months 2 weeks 21 hours ago) and read 1425 times:

Quoting LAXintl (Reply 6):

The right thing would have been stop flying a few weeks prior once they determined Direct Air was not in compliance with DOT regulations by not having the money for contracted services in the bank.

So not only was Direct Air in violations of charter regulations, Xtra as the operator continued to breach its own regulatory responsibilities, and by pulling the rug out from under the consumer at the last minute made things even worse for itself.

Ok...so if Xtra was not paid weeks before, they should've stopped then, correct? How is that not any last minute then it was when they finally stopped flying? It would've been last minute to those people on those flights....right?

What is the actual DOT regulation? Can an operator like Xtra wait till departure time till they get paid and the flight goes, or do they have to be paid like weeks/months in advance? If it's weeks/months in advance, then it wouldn't have been worse, it would've been easier for the passengers. However, if they can operate when they get paid, then your argument really doesn't have a leg to stand on as it's still last minute and pulling the rug out from under the consumer at the last second.


User currently offlineLAXintl From United States of America, joined May 2000, 24311 posts, RR: 47
Reply 8, posted (1 year 6 months 2 weeks 20 hours ago) and read 1366 times:

Quoting flyinryan99 (Reply 7):
Ok...so if Xtra was not paid weeks before, they should've stopped then, correct? How is that not any last minute then it was when they finally stopped flying? It would've been last minute to those people on those flights....right?

Incorrect.

Charter rules require payment be in the bank atleast 10 business days prior to the charter operating.

So if Xtra did not have the $$ deposited, at the very least the consumer would have 10-12 or maybe even depending on how the calender falls 15days notice their flight would not operate.

Xtra ultimately was complicit in the sham that Direct Air pulled on consumers by ignoring basic regulations it was to follow and left itself liable in return which we see now.



From the desert to the sea, to all of Southern California
User currently onlineflyinryan99 From United States of America, joined Feb 2001, 1986 posts, RR: 12
Reply 9, posted (1 year 6 months 2 weeks 19 hours ago) and read 1324 times:

Quoting LAXintl (Reply 8):
Charter rules require payment be in the bank atleast 10 business days prior to the charter operating.

Thank you for clarifying. I appreciate it.


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