Reborn People Express airline buys a troubled carrier to help FAA certification

The Idaho-based airline acquired Wednesday by People Express agreed in October to pay up to $300,000 for violating federal rules meant to protect passengers when public charter flights are suddenly canceled.

However, the president of People Express said Thursday the issue did not affect negotiations, and the Newport News company will only have to assume $25,000 of the original fine.

Xtra Airways of Boise was one of four carriers fined by the U.S. Department of Transportation related to last year's sudden shutdown of Direct Air, a charter operator that abruptly canceled its flights in mid-March 2012. Direct Air first attempted to reorganize under Chapter 11 bankruptcy, but the case was converted to a Chapter 7 liquidation by April, according to reports.

Because of the shutdown, flights were canceled on short notice and round-trip