User avatar
LAXintl
Topic Author
Posts: 20484
Joined: Wed May 24, 2000 12:12 pm

DOT Fines Xtra Airways - Stuck Pax Due Direct Air

Tue Oct 02, 2012 7:07 pm

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

=
From the desert to the sea, to all of Southern California
 
nkops
Posts: 2161
Joined: Fri Jun 03, 2005 10:09 am

RE: DOT Fines Xtra Airways - Stuck Pax Due Direct Air

Wed Oct 03, 2012 1:32 pm

Are they the only Direct Air carrier to get fined?
:evil:
 
flyinryan99
Posts: 1432
Joined: Sat Feb 17, 2001 6:54 am

RE: DOT Fines Xtra Airways - Stuck Pax Due Direct Air

Wed Oct 03, 2012 2:12 pm

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 avatar
LAXintl
Topic Author
Posts: 20484
Joined: Wed May 24, 2000 12:12 pm

RE: DOT Fines Xtra Airways - Stuck Pax Due Direct Air

Wed Oct 03, 2012 2:38 pm

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 avatar
b727fa
Posts: 1058
Joined: Sun Jun 12, 2011 8:21 pm

RE: DOT Fines Xtra Airways - Stuck Pax Due Direct Air

Wed Oct 03, 2012 3:09 pm

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.
 
flyinryan99
Posts: 1432
Joined: Sat Feb 17, 2001 6:54 am

RE: DOT Fines Xtra Airways - Stuck Pax Due Direct Air

Wed Oct 03, 2012 3:29 pm

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 avatar
LAXintl
Topic Author
Posts: 20484
Joined: Wed May 24, 2000 12:12 pm

RE: DOT Fines Xtra Airways - Stuck Pax Due Direct Air

Wed Oct 03, 2012 6:22 pm

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
 
flyinryan99
Posts: 1432
Joined: Sat Feb 17, 2001 6:54 am

RE: DOT Fines Xtra Airways - Stuck Pax Due Direct Air

Wed Oct 03, 2012 6:50 pm

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 avatar
LAXintl
Topic Author
Posts: 20484
Joined: Wed May 24, 2000 12:12 pm

RE: DOT Fines Xtra Airways - Stuck Pax Due Direct Air

Wed Oct 03, 2012 7:45 pm

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
 
flyinryan99
Posts: 1432
Joined: Sat Feb 17, 2001 6:54 am

RE: DOT Fines Xtra Airways - Stuck Pax Due Direct Air

Wed Oct 03, 2012 8:30 pm

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.

Popular Searches On Airliners.net

Top Photos of Last:   24 Hours  •  48 Hours  •  7 Days  •  30 Days  •  180 Days  •  365 Days  •  All Time

Military Aircraft Every type from fighters to helicopters from air forces around the globe

Classic Airliners Props and jets from the good old days

Flight Decks Views from inside the cockpit

Aircraft Cabins Passenger cabin shots showing seat arrangements as well as cargo aircraft interior

Cargo Aircraft Pictures of great freighter aircraft

Government Aircraft Aircraft flying government officials

Helicopters Our large helicopter section. Both military and civil versions

Blimps / Airships Everything from the Goodyear blimp to the Zeppelin

Night Photos Beautiful shots taken while the sun is below the horizon

Accidents Accident, incident and crash related photos

Air to Air Photos taken by airborne photographers of airborne aircraft

Special Paint Schemes Aircraft painted in beautiful and original liveries

Airport Overviews Airport overviews from the air or ground

Tails and Winglets Tail and Winglet closeups with beautiful airline logos