Delta is suing one of the nation's best-known resorts for millions of dollars in allegedly-unpaid air fares.
WSB's Bob Coxe reports Delta is claiming breach of contract by the company that owns the Greenbrier luxury resort in White Sulphur Springs, West Virginia. The airline says Greenbrier has failed to pay the guaranteed minimum they contracted for from June 2010-June 2011 for Delta to fly visitors to the Greenbrier Valley Airport from Atlanta and New York.
The airline is seeking $4 million in damages, plus legal fees. The case has now been moved from Fulton Superior to Atlanta federal court.
Delta says its revenue was less than what was guaranteed, and plans to draw on a million dollar line of credit until The Greenbrier meets its obligation.
Greenbrier owner Jim Justice had said expanded air service to the resort, which is also serviced by Continental flights from Cleveland, was needed due to the 2010 debut of the PGA Tour's Greenbrier Classic and the July 2010 opening of an $80 million underground casino.
Earlier this month, the resort laid off more than 100 of its 1,800 workers as it deals with a $13 million deficit. Justice cited a traditional slowdown in the winter months and said he hoped to rehire most of those laid off by April 1.