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Independence Air Ch 11?

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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.
 
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twott driver said:
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.
 
Clyde said:
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
 
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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.
 

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