Direct Air's flights were operated by Sky King, Inc., Xtra Airways, World Atlantic Airlines, and USA Jet.

[7] On November 14, 2006, Direct Air announced nonstop service from Myrtle Beach to Newark, Niagara Falls, and Plattsburgh, New York.

"No circumstances of physical impossibility existed during that 10-day period that would have prevented [Direct Air] from performing the scheduled flights," the DOT said in its administrative claim to the fines accumulated prior to the case's conversion to Chapter 7.

The DOT is also looking into Direct Air's handling of a required escrow account that officials say is underfunded, which is also another violation of federal law.

The maximum civil penalty is $27,500 per violation per day, but the total in Direct Air's case is still unknown, according to the DOT's court filings.

[12] One of the other carriers who flew Direct Airs routes, World Atlantic Airlines, was fined by the United States Department of Transportation $180,000 in July because it abruptly cancelled flights without the proper notice to passengers as the USDOT requires.

[13] On October 2, 2012, it was announced Tuesday that a second carrier of the now defunct Direct Air was fined for abruptly canceling flights in March that left hundreds of vacationers and other travelers stranded.

The DOT also requires carriers to make a reasonable effort to ensure that the charter operators they fly for are obeying the federal rules.

Another one of Direct Air carriers Florida-based Sky King, has filed for Chapter 11 bankruptcy reorganization, with the company's president telling Lakeland Ledger the bankruptcy filling was led by Direct Air's demise, as Sky King was owed $1 million by the former carrier.

A third partner, Robert Keilman, had previously pleaded guilty in September 2015 to one federal count of conspiracy in exchange for cooperation with prosecutors.

Keilman, aged 72 as of 2018, faces up to five years in prison and a $250,000 fine when he is scheduled for sentencing in July, 2018 (the two remaining partners, S. Marshall Ellison—spouse of Kay Ellison—and Edward Warneck were not charged with criminal offenses as of 2018).

After lengthy procedural delays, their case went to trial before Judge Susan D. Wigendon of the United States Court of the District of New Jersey on March 22, 2018, in Newark.

According to the US Department of Justice's official statement post-trial, defendants Ellison and Tull: "...stole passengers' money to try and prop up their failing company,” said Acting Assistant Attorney General (John P.) Cronan.

“Their brazen scheme created a multimillion dollar shortfall that left passengers stranded at airports, and banks and credit card companies scrambling to pick up the pieces."

Florida Illinois Massachusetts Michigan New Jersey New York Ohio Pennsylvania South Carolina As Direct Air was a business classed as a virtual airline (economics), it had no true aircraft fleet upon its own FAA / DOT operating certificate.

Oxygen masks on board failed to deploy, and several passengers passed out, complained of chest pains, shortness of breath, or other issues related to the loss of pressure.