Direct Air, the charter airline based in Myrtle Beach, South Carolina, made a move last week to suspend all operations immediately and file for bankruptcy protection. The dozens of canceled flights that resulted from the abrupt halt in service came at the peak of the spring break travel season, leaving many travelers stranded and searching for a new way home. However, the passengers are not hte only ones to bear the brunt of the financial burden.
JetPay Merchant Services LLC, based in Carrollton, Texas, is the company who is refunding the airfare of hundreds of passengers that were booked on Direct Air flights. The company has called an emergency motion in court to ask Judge Melvin S. Hoffman to tell the New Jersey bank holding Direct Air's funds in escrow to pay out to JetPay the millions of dollars it has spent reimbursing credit card companies. This move could open the flood gates for others who are owed money by Direct Air.
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