Independence Air Ch 11?

[vc10]

http://forums.aca-lounge.com/showthread.php?s=&postid=43657

FLYI guys are saying it could be tomorrow. Not that that necessarily means anything, but with every passing day the chance of Independence Air Ch 11 gets higher and higher.

 

[Jeepman]

Chapter 11, or chapter 7?

 

[banger]

http://forums.aca-lounge.com/showthread.php?s=&postid=43657

FLYI guys are saying it could be tomorrow. Not that that necessarily means anything, but with every passing day the chance of Independence Air Ch 11 gets higher and higher.

THis link takes you to a site that you need to log on to. Anyway you can post the article? Thanks

 

[Rick James]

How much liquid capital on hand at present? Ch. 11 costs a ton of money. Good luck guys/gals..

 

[Peleton]

I have been hearing that since Oct 14, 2004. I think IDE was supposed to be in BNK at least 7 months ago according to Boyd. None of the employees know more than anybody on the outside, the management has not told anybody anything at this point in time. They have been very quiet for so long that it would be unusual if any information had been passed down.

I highly doubt they will file tomorrow, I would guess one day they will just shut the doors with no warning at all. But what the hell do I know, I'm not management.

On a side note check out the volume of shares teading hands the last couple of trading days. Freaky.......

 

[fam62c]

I would think that if they are going to file they will do it before the BK laws change in October. There's a chance that they don't see BK as a viable option. Bankruptcy works best for gigantic corporations that owe massive amounts of money and are leasing massive amounts of equipment that would be surplus outside of it's current operation. Independence Air may not have the critical mass to make it worthwhile for creditors and new investors to keep it alive. Another problem is that there are now 3 large majors reorganizing that will probably attract whatever money is available to keep failing air carriers afloat. I'm not sure that this company could survive a Chapter 11 filing so they may have to do what restructuring they can out of court and hope that fuel comes way down. If they don't file before the laws change I would say that means they don't view a Chapter 11 reorganization as a workable possibility.

 

[AnimalTale]

Everybodies doing it (CHp11). It must be good. Look at UAL, they have been operating under this protection for 3 years. If u dont want to or cant pay your bills you better go under Ch11 b4 the new rulz. I think this industry needs to be regulated again.

Cya

 

[Clyde]

Everybodies doing it (CHp11). It must be good. Look at UAL, they have been operating under this protection for 3 years. If u dont want to or cant pay your bills you better go under Ch11 b4 the new rulz. I think this industry needs to be regulated again.

Cya

I respectfully disagree with re-regulation. Overcapacity and debt are the big reasons Ch. 11 is popular right now. The industry needs to thin out, either through mergers and/or some carriers ceasing to exist. Then, the remaining carriers must strengthen.

From that point, the airlines must turn a profit by increasing revenue and not by decreasing salaries. Yes, keeping your costs under control is important, but you can only do so much before you have to start raising ticket prices again.

 

[lowecur]

Flyi's problem in Chapter 11 is you need DIP financing. I believe everything is already in hock at this point, so DIP financing will probably be out of the question. I can't see anyone throwing anymore money at a business model that will never work.

 

[radarlove]

Flyi's problem in Chapter 11 is you need DIP financing. .

Oh yeah? Just like Northwest's DIP financing?

 

[twott driver]

Well that is the irony of the whole thing, isn't it? NWA have so much cash on hand that they do not need financing. Kinda makes you wonder about the definition of bankruptcy!


Flyi on the other hand would appear not to have enough cash on hand and so WOULD require DIP financing.

 

[Patriot328]

Well that is the irony of the whole thing, isn't it? NWA have so much cash on hand that they do not need financing. Kinda makes you wonder about the definition of bankruptcy!


Flyi on the other hand would appear not to have enough cash on hand and so WOULD require DIP financing.

We don't have assets to leverage... heck i wouldn't be surprised if we leased our computers from dell and that bic has a 3% stake in us locked up in pens.

 

[Jetsi]

The industry needs to thin out, either through mergers and/or some carriers ceasing to exist. Then, the remaining carriers must strengthen.

Now that is one fascinating theory!

UAL tried to merge years ago, got nowhere. Look at all these carriers in bankruptcy, do you really think one of them will fold? They will get a judge in their back pocket just like UAL, sit there for 3 plus years, dump pensions, and get labor contracts destroyed or huge concessions from the employees.

Here is another fascinating theory. What do you think about management raising fares instead of asking for pay concessions from employees when the cost of doing business increases?

WOOO HOOO, almost wet myself from laughing so hard.

Going back to Independence, good luck guys. Hope you go 11 instead of 7. Either way you KRAP out.

Jetsi

 

[densoo]

........

Independence Air will cut more than half of its flights By Marilyn Adams, USA TODAY

Struggling low-fare start-up Independence Air is cutting daily departures by more than half in a bid to avoid bankruptcy court.
Battered by high fuel prices and fare wars, Virginia-based Independence Air (FLYI) said Monday it will cut daily departures in October to between 225 and 250 from a peak of 600 last October.

Based at Washington Dulles airport, Independence will halt cross-country flights. Now, the carrier flies between Dulles and Los Angeles, San Diego, Seattle and San Francisco.

It will stop serving Cleveland, Indianapolis and Louisville. Flights to Las Vegas will continue.

Airbus jet service to New York LaGuardia airport will replace service by smaller regional jets to New York John F. Kennedy. Customers prefer LaGuardia, CEO Kerry Skeen said.

Independence, which launched in June 2004, was the first "low-fare" carrier to use 50-seat regional jets. But Independence spokesman Rick DeLisi said Independence is trying to reduce use of the 50-seaters because they aren't as cost-effective as Airbus jets carrying 132, at current high fuel prices.

Last month, Independence warned in a securities filing it might have to seek bankruptcy-court protection or even liquidate. DeLisi declined to say Monday whether Independence is still seeking new financing, or whether the schedule changes will help it avoid bankruptcy.

"I don't think these changes will alter the ultimate outcome, which is a Chapter 11 filing," said airline analyst Helane Becker of the Benchmark Co.

At Dulles, Independence competes against United Airlines, the USA's No. 2 airline, which operates a Dulles hub.

It also competes against Delta, US Airways, JetBlue and others along the East Coast.