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Yea CHH, that doesn't sound right at all...again, I'd suspect if you get to someone in management...this issue can be resolved.
A heads up for future reference though...I'd never buy a domain through my host. Get a good registrar through which to purchase your domains, and you'll avoid these kinds of issues in the future.
Perhaps the resolution to this issue would be to ask them to transfer the domain to a new registrar. It 'may' be that Webair only acts as registrar for their own hosting accounts...pure speculation there.
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