NEWPORT NEWS, Va. (WVEC) -- Elite Airways' service from Newport News to Myrtle Beach, South Carolina is over before it started.
The company announced Friday it was canceling the planned start of the flights. It added that it was looking at replacement routes that it could announce later in the year.
The airline notified ticketed passengers about its decision and refunded their money to them.
Elite Airways President John Persall said, "We had high hopes for start of service at Newport News, but the demand for this particular city pairing wouldn’t have been sufficient to proceed. We are exploring other routes out of Newport News to popular Florida destinations later in the year, which we believe could drive stronger demand."
Elite Airways announced it would offer the service between Newport News/Williamsburg International Airport (PHF) and Myrtle Beach International Airport (MYR) in January.
The company planned to begin other operations in Newport News in 2017 but delayed plans due to "challenging perceptions" surrounding the airport. Those perceptions included an issue regarding the Peninsula Airport Commission's improper use of funding.
The Peninsula Airport Commission reached a $2 million settlement with TowneBank in December, resolving a dispute over a loan the bank gave People Express Airlines.
The commission guaranteed a loan for People Express with TowneBank for $5 million dollars back in 2014, of which $4.5 million was drawn down.
People Express defaulted and never launched out of Newport News.
The airport ended up losing state funding after state transportation officials said the commission used $3.5 million in public money to pay off the loan.
In a email from airport officials Monday, they said unfortunately the demand for the service was not there, but we continue to look forward to working with elite to announce routes that will have more demand in the future.
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