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.