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FLYI warns of possible chapter 11 filing.

Dav8tor

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Independence Air may be near Chapter 11 filing

By Marilyn Adams, USA TODAY
Fourteen months after launching, discount carrier Independence Air (FLYI) warned Tuesday it's preparing for a possible Chapter 11 bankruptcy filing.
In a securities filing, the Washington, D.C.-based carrier didn't rule out the possibility it might liquidate.

Battered by fare wars and record high fuel prices, Independence Air also reported a $98 million loss for the second quarter, more than triple its $27 million loss a year ago. Its cash balance plummeted 61% in the first half of this year to a dangerously slim $65 million.

Company officials said the carrier hopes to borrow cash, but they weren't optimistic.

"We can't provide assurances that our efforts will be successful," CEO Kerry Skeen bluntly told analysts. "We realize there are tough times ahead."

Skeen said Independence is cutting its schedule 15% in September, to 342 daily flights, mainly by reducing the number of flights per day to existing destinations.

Independence Air is the latest U.S. airline to warn it might face a bankruptcy filing this fall, but its warning is the most dire. Although Delta and Northwest also have warned of possible filings, neither faces the prospect of liquidation.

Based at Washington's Dulles airport, Independence Air launched in June 2004 as the first low-fare airline flying 50-seat jets rather than full-size jets. It started service with more flights than any airline start-up, and with a $350 million war chest. Skeen predicted then it would turn a profit this year.

But immediately after the launch, a fare war erupted. Last fall, fuel prices began spiraling upward.

Independence competes with United Airlines, the USA's No. 2 airline, which operates a hub at Dulles, as well as No. 3 Delta Air Lines and US Airways at Reagan Washington National Airport. The pressure from United has been intense, with United — itself in bankruptcy reorganization — matching Independence almost fare for fare. All three airlines would benefit if Independence disappeared, but United would benefit most.

Bad blood already existed between Independence and United. Before changing its name, Independence flew as Atlantic Coast Airlines, a regional carrier for United at Dulles for 14 years.

When United went into Chapter 11 protection in 2002, it sought cheaper terms from Atlantic Coast, which refused, and the carriers parted.

Independence began serving midsize and large cities in the Northeast, Southeast and Midwest, including New York, Boston, Chicago and Atlanta. Today, Independence also flies 12 Airbus A-319s to larger destinations, but the bulk of its fleet is still small regional jets going to midsize cities such as Savannah, Ga.

It has struggled to fill planes as competitors cut fares and offered frequent-flier miles to keep passengers loyal. Its planes were 73% full in the second quarter, while major airlines filled 80% to 90% of their much larger planes.

Shares of Flyi, the Independence Air parent, fell 29% Tuesday, closing at 48 cents.

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Newpilot2b

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Ring, Ring, Ring!

'Hello, this is SkyWest?''
'Yea this is UAL.'
'What can we do for you?'
'We got some stiff compitition going on at IAD with "FlyI". I got a plan. You have cash to burn. Why don't we let these "I" guys suffer a little bit longer and then this fall go on a shopping spree to buy "I" out.'
'Uh...Ok'
'Remember you will also buy there Airbus Certificate along with more 50 seaters you could use on the West coast.'
'Uh...Ok.'
'Your guys will love flying the Airbus for 70 seat rates!'
'I think you might be right'
'See I will screw my own guys, and then slowly we will let you fly our Airbus' for us starting with the LAX-SFO-SEA Shuttle.'
'Uh...Ok. But what about Delta scope?'
'Don't worry. Just run it under the "I" certificate as a seperate airline. Call it SkyWestII or SkyWestBest.'
'Uh...Ok.'
Click
 

AAflyer

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CheckandSet said:
Jack A$$- !!!!!!!
Why is he a jack a$$? Is this something Skywest would do? I don't know, just asking a question.

AA
 

Rick James

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Newpilot2b said:
Ring, Ring, Ring!

'Hello, this is SkyWest?''
'Yea this is UAL.'
'What can we do for you?'
'We got some stiff compitition going on at IAD with "FlyI". I got a plan. You have cash to burn. Why don't we let these "I" guys suffer a little bit longer and then this fall go on a shopping spree to buy "I" out.'
'Uh...Ok'
'Remember you will also buy there Airbus Certificate along with more 50 seaters you could use on the West coast.'
'Uh...Ok.'
'Your guys will love flying the Airbus for 70 seat rates!'
'I think you might be right'
'See I will screw my own guys, and then slowly we will let you fly our Airbus' for us starting with the LAX-SFO-SEA Shuttle.'
'Uh...Ok. But what about Delta scope?'
'Don't worry. Just run it under the "I" certificate as a seperate airline. Call it SkyWestII or SkyWestBest.'
'Uh...Ok.'
Click
I dont care for the 70 seat rate comment, but the concept of the story is more plausible than I care to admit.
 

homerjdispatch

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a lot
Newpilot2b said:
Ring, Ring, Ring!

'Hello, this is SkyWest?''
'Yea this is UAL.'
'What can we do for you?'
'We got some stiff compitition going on at IAD with "FlyI". I got a plan. You have cash to burn. Why don't we let these "I" guys suffer a little bit longer and then this fall go on a shopping spree to buy "I" out.'
'Uh...Ok'
'Remember you will also buy there Airbus Certificate along with more 50 seaters you could use on the West coast.'
'Uh...Ok.'
'Your guys will love flying the Airbus for 70 seat rates!'
'I think you might be right'
'See I will screw my own guys, and then slowly we will let you fly our Airbus' for us starting with the LAX-SFO-SEA Shuttle.'
'Uh...Ok. But what about Delta scope?'
'Don't worry. Just run it under the "I" certificate as a seperate airline. Call it SkyWestII or SkyWestBest.'
'Uh...Ok.'
Click
Wait.... Lets call it ASA...Another SkyWest Airlines!
 

Mongolikecandy

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Rick James said:
I dont care for the 70 seat rate comment, but the concept of the story is more plausible than I care to admit.
Why don't you care for the comment? SkyWest pilots already voted to fly 90 seats for 50 seat rates.
 

RP170

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Mongolikecandy said:
Why don't you care for the comment? SkyWest pilots already voted to fly 90 seats for 50 seat rates.
When did this happen? I hope that's not true.
 

Mongolikecandy

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RP170 said:
When did this happen? I hope that's not true.
It was a TA about two years ago or so. (actually up to 99 seats) It may have expired by now but if they voted for it once, what would stop them from voting for it again?
 

Mikes Apartment

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They will fall for it again. What a joke. That Jetblue CEO must be in bed with the Skywest guy. They like to set their own rates. Any new deals will affect me also. Peace out.
 

nimtz

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Rick James said:
I dont care for the 70 seat rate comment, but the concept of the story is more plausible than I care to admit.
You don't like the 70 seat comment then do something about it! I remember many Skywest guys claiming that 18 month deal was only temporary and worth it to help the company grow. The best part is many said the problem would be fixed in a short 18 moths. Over two years later and this profession has headed further down the abyss. Sad and pathetic in my book...
 

Rick James

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nimtz said:
You don't like the 70 seat comment then do something about it! I remember many Skywest guys claiming that 18 month deal was only temporary and worth it to help the company grow. The best part is many said the problem would be fixed in a short 18 moths. Over two years later and this profession has headed further down the abyss. Sad and pathetic in my book...
I'm trying to as I type this. There is more going on that I'm sure your not aware of. Unfortunately it's a massive task to fix this mistake that the pilot group made. I cant think of many airlines that are not guilty of "lowering the bar" to an extent over the past 4 years.
 

RP170

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Rick James said:
I'm trying to as I type this. There is more going on that I'm sure your not aware of. Unfortunately it's a massive task to fix this mistake that the pilot group made. I cant think of many airlines that are not guilty of "lowering the bar" to an extent over the past 4 years.
It's bad enough that 90 seaters are even being considered to be flown at regionals, let alone for 50 seat rates? You've got to be kidding me.
 

Bluto

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Nobody has proposed flying 90-seaters for 50-seat rates. Many contracts have examples of unfortunate wording in them. Our representative body is currently in discussions with management to resolve this and other problems with our pay structure.

I find it interesting that you feel comfortable enough with your own position to act with such disgust at a theoretical scenario at SkyWest. Which company do you fly the E170 for? Care to post their pay rates? Let's see whose are more ridiculous.
 

Rick James

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RP170 said:
It's bad enough that 90 seaters are even being considered to be flown at regionals, let alone for 50 seat rates? You've got to be kidding me.
Strange thing after reading your statement, is the AC in your profile and screen name.
 

starshipdrvr

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Per our latest email from our pilot association president, it appears that the payscales will be separate and limited to aircraft that are currently on property, not a seat range. Glad we finally got something going right after 8 months of needless dickering.
 

Bluto

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CHQ's 60-78 seat rates are not terribly impressive:
For Captains:
CHQ 60-78 / SkyWest 50
1 $54.89 / $56.03
2 $58.12 / $57.77
3 $62.07 / $59.54
4 $64.01 / $61.40
5 $65.96 / $63.29
6 $68.01 / $65.25
7 $70.11 / $67.27
8 $72.28 / $69.35
9 $74.51 / $71.49
10 $76.83 / $73.71
$1.45/ $1.60 per diem

For FO's:
(Incidentally, CHQ rates for FO's are the same for all jet types while SkyWest has substantially higher separate rates for 100-159 seat jets)
CHQ / SkyW
1 $21.52 / $19.02
2 $28.96 / $34.54
3 $33.31 / $35.61
4 $34.34 / $36.71
5 $34.34 / $37.84
6 $34.34 / $39.02
7 $34.34 / $40.23
 

BigHangar

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Mongolikecandy said:
Why don't you care for the comment? SkyWest pilots already voted to fly 90 seats for 50 seat rates.
When is everyone going to understand?! SkyWest pilots don't vote on anything...they don't have a union! Management dictates to their employees how it is going to be, period. Now, to make employees feel warm and fuzzy like they actually have representation, management talks to the pilot association SAPA which has no power, use a little vasoline, and voila...the pilots feel like they actually had some say in the matter. Then later on, everyone in the industry accuses them of selling out with some crappy contract which really doesn't exist.

So, lets repeat it together. SkyWest pilots didn't vote to fly 70/90 seaters for 50 pay rates. They voted many times to not have a union. That is were the problem lies. I know many great SkyWest pilots that would never want to screw other pilots at other airlines, but they just have absolutely no say in the matter. SkyWest management is very capable of doing all the screwing...enabled of course by a low cost labor group. They are low cost because they have no contract which is generally more expensive and helps raise the bar throughout the industry. In conclusion :), it is an ongoing circle of screwing, and indeed if SkyWest management screws other pilots and airlines (not saying they do, just theoretically if they did or have or will), it is the pilots fault.
 

AZ Typed

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nimtz The best part is many said the problem would be fixed in a short 18 moths. Over two years later and this profession has headed further down the abyss. Sad and pathetic in my book...
Yup - 5 years ago joining the ranks of regional pukes was one of the best decisions of my life. Last May - leaving these same ranks was one of the best decisions of my life. The haydays are over - it's sad that many of our brothers and sisters either

a) will accept the flatspin career / industry
b) don't have a backup plan B standing by

Remember how first year FOs had to supplement their flying the first year or two? Soon - pilots will have to supplement their entire career to stay in the air. It's sad and too bad...and you're right: down right pathetic thanks to the pig-vomits running the buisness.

AZT
 

RP170

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Rick James said:
Strange thing after reading your statement, is the AC in your profile and screen name.
Last time I checked the E170 has 70 seats. In no place did I mention anything about 70 seaters.
 
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