Congressman Brian Higgins announced a federal bankruptcy judge approved a settlement that would reimburse approximately 26 percent of each Direct Air claimant's entitlement. Checks will be distributed over the next several weeks.
"Direct Air passengers were profoundly impacted by the sudden shutdown of the airline and the cancellation of their flights," Higgins said. "While this is a positive initial step, consumers deserve to have confidence in the air travel system, and that means reliable service and appropriate reimbursement when cancellations occur."
Approximately 1,900 consumers who bought tickets with cash or means other than a credit card will receive refunds. Another approximately 91,000 customers who bought tickets for cancelled flights with a credit card have already received refunds through credit card chargebacks.
In November, Higgins wrote to the bankruptcy court judge in support of consumer refunds.
On March 12, 2012, Direct Air cancelled flights out of Niagara Falls International Airport and indefinitely suspended all operations before filing bankruptcy. In the wake of the bankruptcy proceedings, Higgins was a strong advocate for Western New Yorker's impacted by the abrupt shutdown.