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Direct Air Files for Bankruptcy

Direct Air filed for Chapter 11 bankruptcy last week after shutting down all operations.

This filing comes as no surprise to those who have followed the airline. Although the line filed for Chapter 11—which, in theory, allows it to restructure—I, for one, would be surprised if it ever flies again, at least as it formerly operated.

Direct Air seemed to be trying to follow Allegiant’s overall business model, flying from under-served eastern and midwestern cities to major tourist destinations, but the execution wasn’t as good as Allegiant’s. Whatever the reason, Direct Air is not an option now, and it may never be.

If you had already bought a ticket on Direct Air, the line says it doesn’t have enough money to rebook you on another airline. Your only recourse is to obtain a chargeback from your credit card company—and I suspect the credit card companies had built up a pretty good reserve against such an eventuality.

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