Discount air carrier JetAmerica folds

updated 6:21 p.m. ET July 17, 2009

NEWARK, N.J. - JetAmerica, a fledgling discount airline that garnered attention with $9 promotional fares, has folded without ever getting off the ground.

The Clearwater, Fla.-based company says it's suspending sales to all markets and will immediately begin to process refunds to customers. Service was originally supposed to begin July 13 to underserved markets in Toledo, Ohio; South Bend, Ind.; Melbourne, Fla.; and Lansing, Mich. Flights were also scheduled to larger airports in Minneapolis and Newark, N.J.

JetAmerica announced July 2 that it was delaying the launch of flight operations by a month and refunding its first $500,000 in sales because of problems securing landing slots at Newark Liberty International Airport.

The company cited those problems in its announcement Friday.

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