Bad News for Indy

[Franky4Fingers]

I'm just wondering why this post is in the Majors forum.

The over zealous writer should have posted this in the regionals forum.

Scramjet

............................Uh O.K.

 

[Franky4Fingers]

The Do-Jets will be gone on Nov. 1

Associated Press
Analyst: Delta Troubles Could Sink FLYi
Tuesday October 19, 3:39 pm ET

NEW YORK (AP) -- Just four months after converting to a low-cost airline, FLYi Inc. faces potential bankruptcy as soon as January amid concerns over mounting oil prices and the deteriorating financial situation at Delta Air Lines Inc., an analyst said Tuesday.

UBS Investment Bank analyst Robert Ashcroft said he expects FLYi's September plane occupancy to be flat compared with August, when the airline's load factor declined to 45.1 percent from 47.1 percent. He noted that the carrier's late reporting of last month's traffic could signal disappointing figures.

With the added pressure of oil prices lingering in the $50-per-barrel range, FLYi -- now operating as Independence Air -- could see its yearly expenses soar by as much as $100 million, he said.

"It's clear to us that FLYi's business plan isn't working," Ashcroft wrote in a research note, adding that the former regional carrier based its discount concept on oil prices of about $30 per barrel and has not hedged against higher costs by purchasing fuel in advance. In recent trading, crude oil was down 72 cents to $52.95 per barrel on the New York Mercantile Exchange.

The analyst downgraded FLYi to "Sell" from "Hold" while lowering Delta two notches to "Sell" from "Buy," joining the ranks of analysts that say Delta's September cash balance of $1.45 billion is "already in the danger zone" of necessitating a trip into Chapter 11.

Delta's looming bankruptcy filing, which Ashcroft expects in the near future, would give FLYi the extra burden of making rent payments on 30 planes it used to operate as a regional arm of Delta. Unable to assume lease liability for the jets because of its poor credit rating, Delta is "highly likely to walk away" from the planes, he said.

Ashcroft's report grounded shares of FLYi, which sank 26.5 percent or 90 cents, to $2.50 in midday Nasdaq activity. Meanwhile, Delta descended 4.5 percent, or 14 cents, to $2.97 on the New York Stock Exchange.

The analyst's forecast comes after industry observers last week watched several major U.S. airlines scour for ways to cut costs and stave off financial failure. The American Stock Exchange Airline Index retreated 2.7 percent, or 1.15 points, to 41.36 points in afternoon trading. FLYi's clouded future could dash the hopes of U.S. Airways Group Inc., which on Monday unveiled its plan to reorganize into a low-cost carrier in an effort to emerge from its second bankruptcy in four years.

 

[350DRIVER]

They were in a huge uphill battle from the start, the article surely isn't as surprising as it was expected.

3 5 0

 

[Skyrtr]

DoJets

The DoJets operated by ACA were supposed to go to Skyway in MKE, but the deal keeps getting put off. The articles posted above indicate that even if Delta wanted to keep the leases, they wouldn't be able to because of their terrible credit. Not sure where that leaves the Skyway deal. I'm starting training there soon, and it's mighty concerning. I doubt Skyway (Midwest Connect) would want to, or be able to qualify as the leaseholder of 30 more jets....

 

[Andy]

This should answer any questions about ALPA being a "brotherhood" when you are wishing unemployment and hardship upon others....

Hmmm. FLYI's pilots' decision to fly for lower wages "as long as we're not tied to UAL and get to fly the airbus for the lowest wages in the industry" certainly wasn't what I'd call a brotherly act. Don't try to sell me on that brotherhood crap; you boyz whored yourselves out to fly fifi.
As you well know, many within (and outside of) FLYI did not think that UAL could replace FLYI's feed. They did.
I saw plenty of gloating posts over UAL's tough times (which continue); do you expect me to care about your unemployment when I'm furloughed? Get a grip, pal.

Dude - that's uncool. Why would you wish unemployment on anyone - especially in your situation? I give them at least an "A" for effort. It takes ball$ to strike out on your own like that. You don't have to be a d!ck about it....

Why would I wish unemployment on them? I don't, as long as they fly RJs between IAD and Chatanooga, TN/Charleston, WV. But they're trying to fly the same GDammed routes that I used to fly in an airbus. I'd like to get my job back within the next 5 years, and FLYI adding transcon routes in the airbus is not going to get me back anytime soon; however, when they go tango uniform, UAL will need to add capacity to match demand.
Their gain was my loss. Their loss will move me closer to recall. If that makes me a d!ck, so be it. What do you want me to do; lie and say, 'boy, that really sux for FLYI; I sure hope u boyz make it?'

Load Factors dont mean jack until they bring out A319's.
We'll see what happens then.

What freaking planet are you from? FLYI is bleeding at least $1 mil/day due to low load factors (among other things, like a dumba$$ biz plan). Are you suggesting that adding capacity to an airline with abysmal loads will help? That's funny.

i think if you ask any flyi employee they would tell you that they would rather die standing than live bent over by united. oh, and by the way andy, sorry about your furlough.

As long as they're ready to die on their feet soon. The cash burn will bury FLYI very soon.
As far as being bent over by United, that's a matter of opinion. EVERYONE's taking a beating since 911. United had no choice but to ask FLYI to accept lower payments. United didn't pick on FLYI; they told everyone that they needed to accept cuts. FLYI refused; United got an unaffordable contract terminated in bankruptcy court.
No big thing as far as being furloughed. It's only been 2 1/2 years; I figure that I should be back by 2010. It's kinda hard to have sympathy for my prodigal 'brothers' when I'm staring at another 5+ years on the street.

 

[46Driver]

Well, I guess that's the difference. You gloat over me (possibly) going to the unemployment line. I handwalk two furloughed United bubbas resumes into my unit.

You may personally rejoice over FlyI's situation, but people losing jobs is not something you publicly announce with glee.

 

[PHXFLYR]

USMC 1
Air Corps Nothing


Nice 'tude Andy!


PHXFLYR

 

[Andy]

Well, I guess that's the difference. You gloat over me (possibly) going to the unemployment line. I handwalk two furloughed United bubbas resumes into my unit.

You may personally rejoice over FlyI's situation, but people losing jobs is not something you publicly announce with glee.

Pal, your company is using data collected while being UAL Express carrier to turn against them, and in the process essentially steal my job. Am I glad to see you greedy $OBs get your come uppance? You betcha. Seeya on the unemployment line. Or not; Florida lets me file electronically.

 

[FlyComAirJets]

Cry me a river.

Yeah, like UAL doesn't have any blood on their hands. Tell that to the early 90's-era Air Wisconsin pilots some who, interestingly enough, are at ACA.

 

[FlyComAirJets]

... and don't forget the (original) Frontier pilots, too!