Indy gets an extension...

[ultrarunner]

Wow, I'm so surprised...another ailing airline gets an extension from it's creditors...

who would have ever thought...

good grief...

 

[kingair350capt]

That's very shocking news!!!!

 

[GogglesPisano]

Wow, I'm so surprised...another ailing airline gets an extension from it's creditors...

who would have ever thought...

good grief...

At least FlyI did it without the aid of a bankruptcy judge. With the 50-seat jet slowly becoming obsolete, the leaseholders were worried about finding other operators.

 

[MickeySlapnutz]

At least FlyI did it without the aid of a bankruptcy judge. With the 50-seat jet slowly becoming obsolete, the leaseholders were worried about finding other operators.

Why are 50 seat RJ's becomeing obsolete? Kerry Skeen said "We remain solidly convinced that by using the right aircraft sized for the right markets, Independence Air will take its place as the natural next step in the evolution of the highly successful low-fare airline model.” The company has a fleet of 145 aircraft—including a total of 120 regional jets—and offers 800 daily departures, serving 84 destinations.

Why does FLYi need to get extensions from its creditors? Kerry Skeen said “We are literally amazed at the strong response Independence Air is receiving from people in the Washington metropolitan area and all around the country." "We’ve believed all along that people in our home area have been hungry for an airline that offers the combination of excellent
low-fare service to a wide variety of destinations and the convenience of being able to use Washington Dulles. In just the first 24 hours, it is immediately apparent that public demand is even greater than we might have predicted. We believe that our low-fare strategy—once it is fully implemented—will satisfy that demand with a product that people are really going to love.”
Oh and by the way...the demand for FLYi is so strong that:Independence Air Says “Thank You” With $44/$64 Fares

So part of implementing the demand that people are so hungy for at Dulles includes :
1.--Consensual lease terminations on 24 CRJ aircraft, almost all of which will be returned during the first and second quarters of 2005. Together with previously announced changes these lease terminations will result in the company operating a fleet of 58 CRJ aircraft. Many of the operational changes resulting from this fleet reduction are already reflected in the company’s February and March service schedule.
2.--Deferral of $70 million in CRJ rent payments that would have been due between January 2005 and February 2007.
3.--As previously announced, the company sold four CRJs in December 2004 for approximately $50 million


This is all management speak. In the real world this is called a FIRE SALE!!!