lowecur
Well-known member
- Joined
- Sep 14, 2003
- Posts
- 2,317
It looks like GE has no problem finding companies to lease the CL 65's that it is repo'ing from FLYi. The company is shrinking fast, and unfortunately many furloughs are the result.
FLYi, Inc. Announces Agreement With GECAS
Monday January 10, 7:05 pm ET
DULLES, Va., Jan. 10 /PRNewswire-FirstCall/ -- FLYi, Inc. (Nasdaq: FLYI - News), parent of low-fare airline Independence Air, stated today that it has finalized an agreement with GE Commercial Aviation Services, Inc. and certain of its affiliates ("GECAS") to provide for the early termination of leases on ten regional jet aircraft during the first quarter of 2005. The ten aircraft will be removed from service after February 1 and will not affect the company's flight schedule that is currently available for booking. The agreement also does not affect the company's Airbus A319 operations, which will continue to operate on their previously announced schedules, with existing non-stop service between Washington Dulles International Airport and Tampa and Orlando, and new non-stop service from Washington Dulles to West Palm Beach, FL to begin on February 1, 2005 and service to Fort Myers, FL beginning February 17, 2005. <LI>(Logo: http://www.newscom.com/cgi-bin/prnh/20031119/DCW018LOGO-a )
In addition to the agreement for early lease terminations on ten regional jet aircraft, the company has also entered into a memorandum of understanding ("MOU") with GECAS that, subject to satisfaction of a number of conditions, provides for GECAS to extend the company a secured 5-year term loan in the amount of $19.5 million, and addresses the restructuring of obligations with respect to 27 additional regional jets as to which GECAS has provided financing. Specifically, with respect to these regional jets, the MOU provides for the early termination of leases for between six and ten additional regional jet aircraft during the second quarter of 2005 under terms similar to the first ten aircraft and, provides that GECAS will consent to the restructuring of rentals to defer a significant portion of the payments due through April 30, 2006. The MOU is subject to a number of conditions, including the approval of the remaining financing parties in the 27 aircraft to restructure payments which are due to them, and including the requirement that the company reach similar agreements with the lenders and lessors on other aircraft. The company is filing an SEC Form 8-K setting forth additional information on the company's agreement and MOU with GECAS.
The company views the agreement and MOU with GECAS as an important step in the company's efforts to restructure its obligations with its aircraft lenders and lessors. The company is continuing to engage in discussions and negotiations with those parties. However, there is no assurance that the conditions in the MOU with GECAS will be satisfied, including the condition that other aircraft financing parties agree to defer or restructure the company's obligations on similar terms, or that the company otherwise will be able to address and resolve its liquidity issues.
Independence Air currently offers service to a total of 38 destinations- with flights to West Palm Beach, FL scheduled to begin on February 1st and service to Fort Myers, FL scheduled for February 17th. The Independence Air hub at Washington Dulles is the largest low-fare hub in America in terms of total departures. For more information about FLYi, Inc. and Independence Air, please visit our website at http://www.FLYi.com.
This press release contains forward-looking statements and is are made as of January 10, 2005, and the company undertakes no obligation to update its disclosures, whether as a result of developments in its efforts, or as a result of any other new information, future events, changed expectations or otherwise, prior to its next required filing with the Securities and Exchange Commission. Such forward-looking statements are subject to risks, uncertainties, assumptions and other factors that may cause the actual results of the company to be materially different from those reflected in such forward-looking statements. Such risks and uncertainties include, among others: the ability of the company to successfully complete negotiations with its various lessors and lenders to reduce and/or defer its aircraft lease and loan payments; the ability of the company to effectively implement its low- fare business strategy utilizing regional jets and Airbus aircraft, and to compete effectively as a low-fare carrier, including passenger response to the company's new service, and the response of competitors with respect to service levels and fares in markets served by the company; the effects of high fuel prices on the company; the ability to successfully and timely resolve its obligations with respect to its aircraft that are not used for Independence Air operations; and other risk factors are more fully disclosed under "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the company's Form 10-K for the year ended December 31, 2003, its Quarterly Report Form 10-Q for the period ended September 30, 2004 and in subsequently filed Forms 8-K.
FLYi, Inc. Announces Agreement With GECAS
Monday January 10, 7:05 pm ET
DULLES, Va., Jan. 10 /PRNewswire-FirstCall/ -- FLYi, Inc. (Nasdaq: FLYI - News), parent of low-fare airline Independence Air, stated today that it has finalized an agreement with GE Commercial Aviation Services, Inc. and certain of its affiliates ("GECAS") to provide for the early termination of leases on ten regional jet aircraft during the first quarter of 2005. The ten aircraft will be removed from service after February 1 and will not affect the company's flight schedule that is currently available for booking. The agreement also does not affect the company's Airbus A319 operations, which will continue to operate on their previously announced schedules, with existing non-stop service between Washington Dulles International Airport and Tampa and Orlando, and new non-stop service from Washington Dulles to West Palm Beach, FL to begin on February 1, 2005 and service to Fort Myers, FL beginning February 17, 2005. <LI>(Logo: http://www.newscom.com/cgi-bin/prnh/20031119/DCW018LOGO-a )
In addition to the agreement for early lease terminations on ten regional jet aircraft, the company has also entered into a memorandum of understanding ("MOU") with GECAS that, subject to satisfaction of a number of conditions, provides for GECAS to extend the company a secured 5-year term loan in the amount of $19.5 million, and addresses the restructuring of obligations with respect to 27 additional regional jets as to which GECAS has provided financing. Specifically, with respect to these regional jets, the MOU provides for the early termination of leases for between six and ten additional regional jet aircraft during the second quarter of 2005 under terms similar to the first ten aircraft and, provides that GECAS will consent to the restructuring of rentals to defer a significant portion of the payments due through April 30, 2006. The MOU is subject to a number of conditions, including the approval of the remaining financing parties in the 27 aircraft to restructure payments which are due to them, and including the requirement that the company reach similar agreements with the lenders and lessors on other aircraft. The company is filing an SEC Form 8-K setting forth additional information on the company's agreement and MOU with GECAS.
The company views the agreement and MOU with GECAS as an important step in the company's efforts to restructure its obligations with its aircraft lenders and lessors. The company is continuing to engage in discussions and negotiations with those parties. However, there is no assurance that the conditions in the MOU with GECAS will be satisfied, including the condition that other aircraft financing parties agree to defer or restructure the company's obligations on similar terms, or that the company otherwise will be able to address and resolve its liquidity issues.
Independence Air currently offers service to a total of 38 destinations- with flights to West Palm Beach, FL scheduled to begin on February 1st and service to Fort Myers, FL scheduled for February 17th. The Independence Air hub at Washington Dulles is the largest low-fare hub in America in terms of total departures. For more information about FLYi, Inc. and Independence Air, please visit our website at http://www.FLYi.com.
This press release contains forward-looking statements and is are made as of January 10, 2005, and the company undertakes no obligation to update its disclosures, whether as a result of developments in its efforts, or as a result of any other new information, future events, changed expectations or otherwise, prior to its next required filing with the Securities and Exchange Commission. Such forward-looking statements are subject to risks, uncertainties, assumptions and other factors that may cause the actual results of the company to be materially different from those reflected in such forward-looking statements. Such risks and uncertainties include, among others: the ability of the company to successfully complete negotiations with its various lessors and lenders to reduce and/or defer its aircraft lease and loan payments; the ability of the company to effectively implement its low- fare business strategy utilizing regional jets and Airbus aircraft, and to compete effectively as a low-fare carrier, including passenger response to the company's new service, and the response of competitors with respect to service levels and fares in markets served by the company; the effects of high fuel prices on the company; the ability to successfully and timely resolve its obligations with respect to its aircraft that are not used for Independence Air operations; and other risk factors are more fully disclosed under "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the company's Form 10-K for the year ended December 31, 2003, its Quarterly Report Form 10-Q for the period ended September 30, 2004 and in subsequently filed Forms 8-K.
