Hochul & Higgins Call For Clear Path to Consumer Refunds Amid Direct Air Bankruptcy

Statement

Representatives Kathy Hochul (NY-26) and Brian Higgins (NY-27) are looking for answers following the abrupt cancellation of flights by Direct Air and the subsequent bankruptcy filing by the company. Last week, a U.S. Bankruptcy Court judge ruled that the company be liquidated under a Chapter 7 filing. According to published reports, proceedings shed light on an alleged shortfall in the escrow account required by the U.S. Department of Transportation (USDOT) intended to hold ticket buyer's funds. The Western New York Representatives are asking for an investigation and calling for a clear path to consumer refunds.

"I have serious concerns about Direct Air's business practices and their ability to follow through on the promises made to hundreds of Western New York families," said Congresswoman Hochul. "We must ensure that escrow accounts were properly maintained and that all customers will be reimbursed for cancelled flights."

"There are serious questions that need to be answered about where the money paid by consumers to Direct Air is and how passengers can go about getting the refunds they deserve," said Higgins. "The Company's sudden stoppage of flights wreaked havoc on family travel plans for hundreds of Western New Yorkers and now some are made to jump through hoops with no clear answer on how to receive refunds."

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