Austin hot air balloon business abruptly closes, customers left without refunds

AUSTIN (KXAN) — A hot air balloon business shut down and left people without hundreds of dollars for their bookings.

Austin Aeronauts abruptly closed its doors at the beginning of October, according to the business. Customers tell KXAN it didn't provide a way for them to reach out about refunds.

Leslie Crowe was one of the people who received an email that her booking was canceled.

"My throat dropped into my stomach. I was like, what? Wait a minute. What's going on? Is this a joke? Is this a prank?"

Leslie Crowe, Austin Aeronauts Customer

She booked a ride with the business as a gift for her husband. Crowe said it cost her $700.

"I took a lot of time to save this money," Crowe said. "We have a mortgage, and it's expensive."

Crowe said the business practically vanished into thin air. It left her and other customers without refunds or a way to get answers. Neither the business' phone number nor email address were working.

"There was no sign that they were even going to close," Crowe said. "This was a blind side to us, like it just came out of nowhere."

Ultimately, Crowe wished the owner was upfront about what was going on and didn't take any more bookings.

"At the very least, you should have had an explanation prior to even closing," Crowe said. "It doesn't feel good to feel like you've been cheated, especially when you feel like you've been honest and given your hard-earned money to someone."

'No more money'

Austin Aeronauts had been in business for more than four decades. The current owner said recently things started going downhill.

The owner told KXAN he bought the business three years ago from the original owner and said it ended up being a bad financial investment. He said bookings were down more than 70% this year and they couldn't keep it afloat.

By the end of September, he claimed they couldn't pay rent, the loan note or the phone bills.

He said there was essentially no money left to host rides or to give customers their refunds.

"We at Austin Aeronauts are very sorry that the business was not able to continue in its form. The financial viability was not there. When all the money was gone, we had to shut our doors because there was no more money."

Austin Aeronauts Owner

Better Business Bureau Resources

If a business owner feels they're at risk of closing, the Better Business Bureau said there are resources to help.

"There's a bunch of different business organizations that can help for free, most of the time. So, you know, reaching out to one of these organizations that can help you find the resources that you need, whether that be money stream, some streams of money to come in, maybe some grants," said BBB Director of Education and Community Engagement Katie Galan.

Galan said it would also be a good idea to get legal advice to understand what the appropriate steps might be to closing the business.

"What's the ethical way to proceed with these customers that I've had or these prospective customers that I have, that have maybe paid down payments?" Galan said. "What's the ethical way to proceed and the legal way to proceed, to make sure that they are not just out of their money, and that you're doing the responsible thing as a business owner?"

Ultimately, Galan said it's important for a business owner to be upfront and honest with customers about their situation.

"Just kind of let them know, 'Hey, this is what's going on. I want to be honest with you. I want to help you. But unfortunately, this is what we have,'" Galan said. "I think customers, a lot of times will appreciate the honesty."