Independence Air Files Chapter 11

[OldCessna]

From CNN

WASHINGTON (CNN) - Low-cost startup airline Independence Air announced Monday that its parent company, Flyi Inc., has filed for Chapter 11 bankruptcy protection.

According to a statement released by the airline, the bankruptcy filing will allow it to "restructure the company's aircraft leases and other costs to achieve necessary cost savings." A representative of the airline said passengers will see no disruption of service.

Independence Air joins ATA and legacy carriers Delta (Research), Northwest (Research) and US Airways (Research), who have either declared bankruptcy or are operating under Chapter 11 of the U.S. Bankruptcy Code.

The Virginia -based carrier was formerly known as Atlantic Coast Airlines. It operated as a contract carrier for United and Delta Air Lines, but broke away and became an independent airline in July 2004 when bankrupt United sought to renegotiate its contract.

FLYi's (down $0.12 to $0.07, Research) stock, which has slid 89 percent so far this year, is likely to be canceled as a result of the Chapter 11 case.

[seacue]

Other stories about "Fly i" seem far more dire.

I figured that they would file before the mid-October witching hour when the backruptcy rules became more strict. My guess is that they couldn't get financing to operate in backruptcy.

Another story says:

"Independence Air parent company FLYi has filed for Chapter 11 bankruptcy protection and will take bids from potential buyers under a court-supervised auction process."


seacue

[Ignition Override]

Where have you guys been?

The airline was in Chapter 11 many months ago. If this is difficult to believe, check old media reports about airlines.
Pilots I work with don't know how it survived this long.

[Globaliser]

Ignition Override: Where have you guys been?

The airline was in Chapter 11 many months ago. If this is difficult to believe, check old media reports about airlines.:confused: How long ago was this? I don't think that it's been in Chapter 11 since it became Indy.

[Konkordski]

It hasn't been in Chap 11, it's only warned of a filing previously.