What does Direct Air owe MYR?

Lauren Morris, spokesperson for Myrtle Beach International Airport, responding to a FOIA request by WMBF News about the payments the airline owes with the following statement:

During the past several months, the airport had been working with the new management/investors of DirectAir to collect the past due amounts as well as developing marketing/service strategies for the upcoming season. DirectAir had been making payments to the airport, with the last payment being received on March 5, 2012. It is not uncommon for the seasonal airlines to make smaller payment during the off-season due to the lack of cash flow and repay the balance due once the season starts. DirectAir has had a history of this at MYR and in the past would repay past due amounts when their passenger levels increased.

DirectAir has maintained a performance bond on behalf of the County in the amount of $151,000. The airport immediately called the bond when Direct Air stopped service.

The amount due to the airport after the bond call is $174,912.59.

The airport maintains an allowance for bad debt to cover events of default. The allowance is adequate to cover the amount due from DirectAir. Other than the past due amounts relating to DirectAir, the airport has less than $45K in past due accounts. The airport monitors the individual accounts as well as the entire accounts receivable balance when assessing its default risk.

The airport has issued a Notice of Default to DirectAir in accordance with the airline use agreement.

The airport has been in contact with DOT/FAA regarding the collection of past due amounts and filing the appropriate claims.

Related stories:

Copyright 2012 WMBF News. All rights reserved.