Red Way, a failed start up airline out of Lincoln Nebraska is putting the blame on Lincoln Airport for the delay in refunding passengers affected by the airlines abrupt shutdown. The airline launched on June 8, 2023 and ceased operations shortly thereafter on August 31, 2023. Red Way had a different operating model compared to a traditional air carrier. Fly Next LLC controlled commercial operations and bookings for Red Way, GlobalX Air Tours operated as the part 380 public charter operator while Global Crossing Airlines based crew and a single Airbus A320 at Lincoln Airport. In simple terms, Red Way did not directly own the aircraft and used Global X to charter the aircraft. The City of Lincoln and Lancaster county received $3 million in ARPA COVID-19 rescue grant funds for Red Way’s operation.
Delays In Refunding Affected Passengers
Hundreds of passengers are still awaiting refunds for paid tickets for flights that never departed. In an interview with the Lincoln Journal Star Lincoln Airport Director Dave Haring had this to say regarding the airports involvement in passenger refunds, “We have never had access to, possessed or received any passenger revenue at all.” (Lincoln Journal Star Oct. 17 2023 publication). In an email to passengers awaiting a refund, Red Way stated that they are owed a substantial sum by the airport authority due October 6th and that the amount is required to be received in order to process refunds. Red Way is required to have a surety agreement secured in an escrow account held at a bank until the flight is completed. The airport does not have access to the escrow funds, only the bank and airline do.
Resources For Red Way Passengers Awaiting A Refund
Affected passengers have resources available to assist with obtaining refunds in addition to contacting Red Way. If a refund has already been requested, passengers can check with their financial institution to see if the refund has already been processed. Additionally passengers can reach out to their credit card company advising them of the lack of a response from Red Way and to begin the charge dispute process. The U.S. Department of Transportation Office of Aviation Consumer Protection has a dedicated consumer protection line where passengers can file a formal complaint:
- US DOT Office Of Aviation Consumer Protection (202) 366-2220
- U.S. Dept. of Transportation escrow funds policy “Dealing with Cancellations”
Work Cited
Sangimino, Pat. “Red Way Lays Blame for Delinquent Refund Checks on Lincoln Airport.” JournalStar.Com, 17 Oct. 2023, journalstar.com/news/local/business/red-way-blames-lincoln-airport-for-delayed-refunds/article_cd38c1ae-6d0e-11ee-9c46-c7f9ebf01dbf.html.