Nebraska Auditor Exposes Failed Red Way Airline as Costly Gamble
Nebraska State Auditor Mike Foley has released an audit accusing Red Way, a defunct airline, of falsely certifying customer refunds in order to withdraw $340,000 from its escrow account. The audit alleges that the airline used the money to pay expenses instead of reimbursing customers, violating federal regulations. Foley estimated that customers may still be owed over $100,000. Red Way, which received $3 million in American Rescue Plan Act funds, shut down after less than three months of operation, with only one out of 274 flights being profitable. Foley criticized the airline as a "failed riverboat gamble" and accused public officials of wasting taxpayer money. The Lincoln Airport Authority acknowledged the auditor's findings and stated that they are reviewing recommendations and improving processes.
