Congressman Brian Higgins, D-NY-26, is asking the bankruptcy court judge overseeing the case involving Direct Air to consider relief for consumers financially impacted by the company's sudden shut down.
According to published reports, the trustee in the case has filed a motion that would allow for the distribution of $250,000 to approximately 1,900 individuals who purchased tickets through Direct Air. Higgins sent a letter to the judge supporting that effort.
On March 12, 2012, Direct Air cancelled flights out of Niagara Falls International Airport and indefinitely suspended all operations before filing bankruptcy. The move wreaked havoc with customer travel plans and left some without refunds for purchased tickets.
In a letter to the judge, Higgins wrote, "In order to for our nation's air travel system to work, consumers need to be assured that they will not be subject to arbitrary cancellations, and if they are, that they will receive fair and timely compensation. Without these assurances, consumer confidence in the air travel system will continue to erode. With that in mind, I respectfully request that you give full and fair consideration based on the merits of the case to providing funds from the company as compensation to the ticket holders who have been adversely impacted."