Southern Sky Air Tours, d/b/a Direct Air was an airline business based in Myrtle Beach, South Carolina, United States. Direct Air started in 2007 and leased aircraft with charter airlines. Its main base was Myrtle Beach International Airport. Direct Air's flights were operated by Sky King, Inc., Xtra Airways, World Atlantic Airlines, and USA Jet. In March 2012 Direct Air ceased operations, stranding many of its passengers. The airline planned to resume operations on May 15, 2012, although this was contested by the U.S. Department of Transportation. The charter carrier was subject to Chapter 7 liquidation on April 12, 2012.
History
On November 14, 2006, Direct Air announced nonstop service from Myrtle Beach to Newark, Niagara Falls, and Plattsburgh, New York. On March 7, 2007, Direct Air (Myrtle Beach Direct Air at the time) started flying. The flights were being operated by Sky King, Inc. on Boeing 737-200 aircraft until May 14, 2007, when Direct Air ended its relationship with Sky King, Inc.
Direct Air's flights were then operated primarily by Xtra Airways and Sky King, Inc. Boeing 737-400 aircraft. Occasionally, especially during peak travel periods, additional other operating carriers and aircraft types are used. These have included jetBlue Airways, Sun Country Airlines, Virgin America, USA Jet, Dynamic Airways, Vision Airlines, and Miami Air.
On March 12, 2012, Direct Air cancelled all of their charter flights throughout the United States. Passengers were initially not given reasons for the abrupt cancellations. On March 13, 2012, a statement issued by Marketing Manager, Ed Warnek, indicated that flights would resume on Wednesday, March 14. Flight cancellations were attributed to a missed fuel payment. Further news releases on March 13 indicate that flights will not resume until May 15 at the earliest. On March 15, the U.S. Department of Transportation issued a statement indicating that "The company has announced that it intends to restart operations as of May 15, 2012; however, the company currently does not have authority to do so."
On March 16, 2012, Direct Air issued a press release stating that it filed for Chapter 11 bankruptcy protection. The public address on its home page was also modified to remove any indication that they would resume operation on May 15, 2012. Chapter 7 liquidation commenced on April 12, 2012.
On August 21, 2012, it was announced that Direct Air had racked up $9.6 million in federal rules violations during the spring when Direct Air abruptly canceled about 350 flights according to its fillings in bankruptcy court. Between March 15 and March 24 Direct Air canceled 144 flights and another 206 flights between March 25 and April 11 that violated federal rules that are aimed at protecting passengers according to a filing made by the U.S. Department of Transportation, who regulates charter operators such as Direct Air and tallied the civil penalties Direct Air according to federal rules isn't allowed to cancel flights less than 10 days before the scheduled departure unless it is physically impossible to fly as is what Direct Air did through March 24, according to the DOT. Direct Air should have also notified passengers that were scheduled to fly on 206 flights March 25 through April 11, when Direct Air's initial chapter 11 bankruptcy case was converted to Chapter 7 liquidation, that their flights had been canceled. Federal rules require that charter operators notify each passenger in writing within seven days after the cancellation but not less than 10 days before the scheduled flight. "No circumstances of physical impossibility existed during that 10-day period that would have prevented [Direct Air] from performing the scheduled flights," the DOT said in its administrative claim to the fines accumulated prior to the case's conversion to Chapter 7. The civil penalty of $9,625,000 could be adjusted to a higher penalty after the DOT received flight information from Sky King, one of five carriers that flew flights for Direct Air, according to the court filing. The DOT is also looking into Direct Air's handling of a required escrow account that officials say is underfunded, which is also another violation of federal law. The maximum civil penalty is $27,500 per violation per day, but the total in Direct Air's case is still unknown, according to the DOT's court filings.