SkyValue passenger funds protected

SkyValue will look and feel much like a traditional airline to passengers, but there is an important difference behind the scenes, according to SkyValue CEO Darrell Richardson.

Because it is operating as a public charter operator, SkyValue deposits passenger payments made at the time of reservation into an escrow account. The airline does not actually receive the money until the flight is complete.

Major commuter airlines collect and deposit passenger money when reservations and ticket purchases are made.

The escrow account ensures passengers would get a refund if SkyValue were to go out of business or if it canceled part of its schedule.

U.S. Department of Transportation regulations require charter airlines to keep passenger payments in escrow until flight completion.

U.S. DOT spokesman Bill Mosley confirmed Tuesday that SkyValue's escrow arrangement has been approved.

That is important for those considering flying SkyValue out of Gary/Chicago International Airport, because they remember how Hooters Air ceased service there at the height of the leisure travel season.