n1786b
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FLYi Files For Bankruptcy

Mon Nov 07, 2005 9:00 pm

FLYi files for bankruptcy

Mon Nov 7, 2005 6:40 AM ET
NEW YORK, Nov 7 (Reuters) - FLYi, Inc. (FLYI.O: Quote, Profile, Research), parent of low-fare carrier Independence Air, on Monday said it and its subsidiaries filed to restructure aircraft leases and other obligations under Chapter 11 of the U.S. Bankruptcy Code.

http://today.reuters.com/investing/f...ANSPORT-FLYI-BANKRUPTCY-URGENT.XML


- n1786b
 
Iloveboeing
Posts: 339
Joined: Mon Oct 31, 2005 11:02 am

RE: FLYi Files For Bankruptcy

Mon Nov 07, 2005 9:05 pm

This doesn't suprise me.....I'm amazed that they made it this far without filing....

I hope their restructuring goes well and I hope they don't go Chapter 7....

Maybe a good first step will be to dump all the CRJs......they're not at all suitable for low-fare operations.....the A319s are much better on fuel.....
 
tallguy14
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RE: FLYi Files For Bankruptcy

Mon Nov 07, 2005 9:10 pm

What a mess! Did anyone really think their business model would be successful? My thoughts are with all the employees who are now stuck in bankruptcy limbo. Good luck to you all.
 
brokenrecord
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RE: FLYi Files For Bankruptcy

Mon Nov 07, 2005 9:22 pm

Finally...

However, I see no way they can restructure. They have too few Airbii, and IMO, this effort is too little, too late.

Hopefully those employed by Flyi can find other employment in short order.
 
ltbewr
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RE: FLYi Files For Bankruptcy

Mon Nov 07, 2005 9:32 pm

If I heard CNN correctly, they filed this morning in the USBC District of Northern Virginia. The biz commentator noted they had problems including computer boo-boos that sold flights for like $5 and they had to honor those sales. I think many here would agree that the creation of FLYi was a bad idea and would never work. I wonder how long to Chapter 7/liquidation?
 
dtw9
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RE: FLYi Files For Bankruptcy

Mon Nov 07, 2005 9:38 pm

Looks like the whole things for sale ,not just a reorg. From AP news-(FLYi said it will seek court approval to auction the business to potential investors or purchasers, which would be expected to be completed within 60 days.) Good luck selling this one to anybody. Been a loser from day one.
 
LAXintl
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RE: FLYi Files For Bankruptcy

Mon Nov 07, 2005 9:42 pm

FLYi unfortunately has been a classic case of management incompetence.
From the initial business plan, to its execution the carrier has made one error after another. While they might be somewhat forgiven in the cost department due to the spike in fuel cost, they did not even come close on their revenue projections either.
Never in my life I have seen an airline with such terrible operating margins be reported quarter after quarter.

FLYi went from the best financed start up in history with $350 million in cash (Jetblue only started with $130million)to only having $24 million in the bank today. Stock holders have seen their share value plunge from near $30 to just under 20 cents as of recent.

What a shame for all parties involved.

[Edited 2005-11-07 13:50:20]
From the desert to the sea, to all of Southern California
 
tallguy14
Posts: 188
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RE: FLYi Files For Bankruptcy

Mon Nov 07, 2005 9:42 pm

Once again, it's sad that another carrier has had its undoing at the expense of its employees! It seemed that the Atlantic Coast pilots and management thumbed their noses at UA and were eager to disentangle themselves from the mother ship. They were absolutely convinced that they would be successful. Arrogance and pride seemed to override common sense, in my opinion.

I don't know who was ladle-ing the Company Kool Aid to the pilot group, but they bought it hook, line and sinker. I'm no expert but it seemed clear to me that it just couldn't work.

A friend of mine, a copilot on the CRJ with Independence Air, was furloughed last year and has since found a much better flying job in the corporate world.

Braniff, Eastern........
 
flightopsguy
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RE: FLYi Files For Bankruptcy

Mon Nov 07, 2005 9:49 pm

The $24M was as of Sept.30. It must be less today. The auction sounds like either an asset sale or a white knight. Also sounds like if they cannot do this auction within 60 days, something else must happen.

It's not unusual for a Chapter 11 filing to roll into a 7 or other liquidation.

But maybe there is a pre-planned sale in the works.
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LAXintl
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RE: FLYi Files For Bankruptcy

Mon Nov 07, 2005 9:52 pm

Press release says "Unrestricted cash as of the day of filing is $24.0 million."

http://www.flyi.com/company/pressarchive/2005/nov/110705.aspx
From the desert to the sea, to all of Southern California
 
GSPSPOT
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RE: FLYi Files For Bankruptcy

Mon Nov 07, 2005 9:54 pm

Is there ANY hope for this organization? I'd hate to see them go away completely.
Finally made it to an airline mecca!
 
OPNLguy
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RE: FLYi Files For Bankruptcy

Mon Nov 07, 2005 10:00 pm

As badly as I feel for the employees, I have some concerns that venture capitalists are not going to be lining up with offers of DIP financing. If the biz plan has a 109% breakeven load factor (the last number I heard), it indicates the biz plan is fundamentally flawed, and that has to be fixed before anyone can/will lend them any more funds.

Quoting Iloveboeing (Reply 1):
This doesn't suprise me.....I'm amazed that they made it this far without filing....

Ditto, times 2. I would have though they would have taken refuge in 11 before the laws changed in October. Unless I missed one somewhere, FlyI will be the first airline that filed under the new laws...
ALL views, opinions expressed are mine ONLY and are NOT representative of those shared by Southwest Airlines Co.
 
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LN-MOW
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RE: FLYi Files For Bankruptcy

Mon Nov 07, 2005 10:04 pm

I'm surprised that there is enough money in the company to even allow Ch. 11 .. Flightopsguy is probably right.

I wonder if there's any connection between this and Sir Richard's announcement yesterday that Virgin America is on the move ... ?? I can see him picking up AOC and Airbii at the auction and let the rest go Ch. 7 .... A quick way in ..
- I am LN-MOW, and I approve this message.
 
Iloveboeing
Posts: 339
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RE: FLYi Files For Bankruptcy

Mon Nov 07, 2005 10:11 pm

Quoting LN-MOW (Reply 12):
I wonder if there's any connection between this and Sir Richard's announcement yesterday that Virgin America is on the move

That could be a possibility.....I heard about them originally wanting to start in SFO, but if they buy Independence, IAD could also be a good base......
 
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LN-MOW
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RE: FLYi Files For Bankruptcy

Mon Nov 07, 2005 10:19 pm

He wouldn't want Independence. He would want the AOC and the aircraft. He already has Management and concept in place, no reason for him to want anything else.
IAD? Why? Why would VA make money in IAD when DH couldn't?
- I am LN-MOW, and I approve this message.
 
bnatraveler
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RE: FLYi Files For Bankruptcy

Mon Nov 07, 2005 10:22 pm

interesting if it is Branson

DJ = Virgin Blue
DH = ACA/Independence/future Virgin America?
 
Iloveboeing
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RE: FLYi Files For Bankruptcy

Mon Nov 07, 2005 10:22 pm

Quoting LN-MOW (Reply 14):
IAD? Why? Why would VA make money in IAD when DH couldn't?

I think it's quite possible.......if they use more efficient narrowbodies, like the A320 or B737, with PTVs, etc, then they can have low-fares and be a formidable competitor to UA and others at IAD.....

Indepedence's major flaw was Regional Jets. As long as they use larger aircraft, which have lower operating costs, VA should be fine....
 
ATWZW170
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RE: FLYi Files For Bankruptcy

Mon Nov 07, 2005 11:04 pm

You know Mesa is going to put in some bid to buy the carrier, but for a lot less then what it was offering last year. I don't think FlyI really has anything to offer...a hand full of A319's and a bunch of CRJ's that no one wants. It's sad to see this happen but maybe if they had a better fare structure and weren't offering $29 fares they could have made it a bit longer....I pretty much agree that Chapter 7 is just around the corner.
Success is getting what you want...happiness is liking what you get
 
kiwiandrew

RE: FLYi Files For Bankruptcy

Mon Nov 07, 2005 11:06 pm

Quoting ATWZW170 (Reply 17):
I don't think FlyI really has anything to offer...a hand full of A319's

are the A319's actually FlyI's to offer though ? I was under the impression ( and of course I could be mistaken ) that everything was leased in which case there are no assets for anyone to be interested in buying - can they legally sell the leases ?
 
Iloveboeing
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RE: FLYi Files For Bankruptcy

Mon Nov 07, 2005 11:07 pm

Quoting ATWZW170 (Reply 17):
You know Mesa is going to put in some bid to buy the carrier, but for a lot less then what it was offering last year. I don't think FlyI really has anything to offer...a hand full of A319's and a bunch of CRJ's that no one wants. It's sad to see this happen but maybe if they had a better fare structure and weren't offering $29 fares they could have made it a bit longer....I pretty much agree that Chapter 7 is just around the corner.

And if they had ditched the CRJ's right from the start and stuck with the A319s and added Satellite TV, then they would have had lower costs and got the demand needed with low fares, and they'd be doing much better.
 
sunking737
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RE: FLYi Files For Bankruptcy

Mon Nov 07, 2005 11:07 pm

They could end up on Ebay with that little commuter FLORIDA COASTAL.
Just an MSPAVGEEK
 
flightopsguy
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RE: FLYi Files For Bankruptcy

Mon Nov 07, 2005 11:22 pm

Quoting Laxintl (Reply 9):
Press release says "Unrestricted cash as of the day of filing is $24.0 million."

You are absolutely correct. My error.

I'm not sure what assets they can sell. My understanding was that pretty much everything except the Dornier parts already are mortgaged. The company name? The FF database? LGA slots? What else does the company have clear title to that could be sold on an unrestricted basis? I doubt Mesa or any other small jet provider would want the A319's. And again, I don't see where these aircraft are FlyI's to sell.

I would think that the leaseholders on the aircraft and real estate would have a say about auctioning their assets.
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Kohflot
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RE: FLYi Files For Bankruptcy

Mon Nov 07, 2005 11:22 pm

So in the next 60 days, they have to find a 'high bidder' for the few remaining assets.. as mentioned, are their aircraft even considered assets? They're all leased. Seems like the only thing left is the A concourse at IAD.

At the same time, they need to try to prevent a 'brain drain'. Who is going to stay on purpose? Especially after the paycut?
Ask why..
 
flightopsguy
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RE: FLYi Files For Bankruptcy

Mon Nov 07, 2005 11:32 pm

Quoting Kohflot (Reply 22):
So in the next 60 days, they have to find a 'high bidder' for the few remaining assets.. as mentioned, are their aircraft even considered assets? They're all leased. Seems like the only thing left is the A concourse at IAD.

Especially when someone like Branson could negotiate great leases with Airbus directly on brand new airplanes. Isn't most of FlyI's airbus fleet mortgaged to the Airbus financial arm, rather than GECAS or some other entity?

I don't believe they own the actual real estate or the building of Concourse A at IAD, but would appreciate some clarification on this. More likely just leasing the space....may own some of the interior stuff (gate seating, etc.).
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ord
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RE: FLYi Files For Bankruptcy

Mon Nov 07, 2005 11:48 pm

Quoting Iloveboeing (Reply 16):
Indepedence's major flaw was Regional Jets. As long as they use larger aircraft, which have lower operating costs, VA should be fine....

Regardless of costs, there is only so much business to go around in the Washington area. United has a very loyal following. It seems that the market there cannot support two hub carriers. As for connecting travelers through IAD, there are a ton of competitive hubs up and down the east coast (perhaps too many).
 
Kohflot
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RE: FLYi Files For Bankruptcy

Mon Nov 07, 2005 11:48 pm

A quick Google provides this:

http://www.flyi.com/company/pressarchive/1999/gen-concourse.html

"The airport authority will provide the financing for the $18 million concourse through passenger facility charges and airport facility bonds."

Edited to add:

The IAD 2004 Competition Plan shows FlyI as having a "long-term" preferential lease on the A gates.

The lease is probably worth something. And I'm sure United would love to have those gates back.. maybe through Mesa?

[Edited 2005-11-07 16:01:07]
Ask why..
 
Tbird
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RE: FLYi Files For Bankruptcy

Mon Nov 07, 2005 11:48 pm

Not sure if any of you noticed but they didn't mention anything about DIP financing which most airlines receive when they are in Chap 11 to help them continue operating. Its a real shame about Indy I flew them back in September, great airline and fantastic service. Without DIP financing I can't see them around to much longer.
 
zvezda
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RE: FLYi Files For Bankruptcy

Mon Nov 07, 2005 11:50 pm

It would be interesting if UA were to buy them.
 
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lightsaber
Crew
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RE: FLYi Files For Bankruptcy

Tue Nov 08, 2005 12:16 am

Quoting Iloveboeing (Reply 1):
This doesn't surprise me.....I'm amazed that they made it this far without filing....

 checkmark 

Quoting Tallguy14 (Reply 2):
My thoughts are with all the employees who are now stuck in bankruptcy limbo. Good luck to you all.

definitely, good luck to all the employees at D.

Quoting Laxintl (Reply 6):

FLYi went from the best financed start up in history with $350 million in cash (Jetblue only started with $130million)to only having $24 million in the bank today. Stock holders have seen their share value plunge from near $30 to just under 20 cents as of recent.

Interesting facts. I'll agree with the chorus. I'm surprised Boyd hasn't written anything about this yet. Apparently, A.net is faster!

Quoting Kohflot (Reply 22):
Seems like the only thing left is the A concourse at IAD.



Quoting Kohflot (Reply 25):
The IAD 2004 Competition Plan shows FlyI as having a "long-term" preferential lease on the A gates.

The lease is probably worth something. And I'm sure United would love to have those gates back.. maybe through Mesa?

The lease might be worth something. However, if they missed a payment (as is likely now), IAD might just yank back the terminal. Let's be honest, even if DH keeps flying, the CRJ's days are very numbered. Thus, DH can do without the RJ terminal and retreat to the 4 "mainline" gates.

Quoting Tbird (Reply 26):
Without DIP financing I can't see them around to much longer.

 checkmark  Hence, why others have mentioned that Indy is going to have to have a fire sale to raise cash within 60 days.

With a recent BK, maybe Virgin America will take over the certificate... Maybe. But if Sir Dick's crew is ready with their own certificate... the cheapest way for Virg A to get these Airbuses might be to lease them *after* they have been returned to the company. (And gone threw a C check to verify flight safety. While I'm sure the DH crews will do their best, after BK...)

Quoting Iloveboeing (Reply 19):
And if they had ditched the CRJ's right from the start and stuck with the A319s and added Satellite TV, then they would have had lower costs and got the demand needed with low fares, and they'd be doing much better.

Not to mention gotten into a reservation system, etc. But having to ditch employees early would have made the launch tougher... And 20/20 hindsight is just that.

Lightsaber
"They did not know it was impossible, so they did it!" - Mark Twain
 
FLAIRPORT
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RE: FLYi Files For Bankruptcy

Tue Nov 08, 2005 12:25 am

maybe VA could by FlyI's A319 assets and gates and DH can continue operating a RJ product, but this time a new RJ concept as a connection carrier to UA.
NEXT FLIGHT: FLL-ATL-HPN on FL
 
DAYflyer
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RE: FLYi Files For Bankruptcy

Tue Nov 08, 2005 12:45 am

Quoting Iloveboeing (Reply 1):
Maybe a good first step will be to dump all the CRJs......they're not at all suitable for low-fare operations.....the A319s are much better on fuel.....

I think that is a wise staring point. Perhaps America West could pick them up as well, since US has a good presence at National airport.
One Nation Under God
 
Bicoastal
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RE: FLYi Files For Bankruptcy

Tue Nov 08, 2005 12:52 am

Quoting FLAIRPORT (Reply 29):
and DH can continue operating a RJ product, but this time a new RJ concept as a connection carrier to UA.

United just recently rebid its regional network. There's nothing left for DH to take. Mesa, Skywest and others have finalized the new routes/contracts with United. United is moving its regionals to bigger 70 to 100 seat jets and away from the 50 seaters. DH would bring nothing that United wants.

Note to Independence employees: Most airlines in the DC area including United, US Airways and contractors Delta Global Services and Swissport are hiring for CSR and Ramp.
Airliners.net has many forums. It has spell check and search functions. Use them before posting!
 
gman3
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RE: FLYi Files For Bankruptcy

Tue Nov 08, 2005 12:59 am

Also we at United are hiring flight attendants that will most likely be based at IAD. Keep checking the papers and website for open house info.
 
MiCorazonAzul
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RE: FLYi Files For Bankruptcy

Tue Nov 08, 2005 1:05 am

so that would explain the employees' long faces while riding to the employee parking lot......and those ATA people aren't smiling much these days either.
Live for Today.....tomorrow is NOT guaranteed.
 
jerion
Posts: 230
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RE: FLYi Files For Bankruptcy

Tue Nov 08, 2005 1:15 am

From the FLYI website:

We've joined United, US Airways, Delta, Northwest and ATA who have recently been or are still operating under Chapter 11 of the U.S. Bankruptcy Code. After carefully reviewing all our options, we decided that this course of action represents the best long-term solution for Independence Air, our customers, our employees, our creditors and the communities we serve.
L10/D9S/D10/M80/M88/732/733/734/735/73G/738/72S/757/762/763/320/319/318/ERJ
 
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clickhappy
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RE: FLYi Files For Bankruptcy

Tue Nov 08, 2005 1:22 am

does this mean no more larry_da_liquidator???

He was a daily source of entertainment for me!
 
N723GW
Posts: 229
Joined: Fri Nov 04, 2005 2:17 pm

RE: FLYi Files For Bankruptcy

Tue Nov 08, 2005 1:36 am

I am not surprised...however, they seem to be so small that it should be (and I say SHOULD) be a little easier to clean up their mess rather then UA/TZ/US/NW/DL...I didn't see how they could function with those RJ's in the first place. Oh well, that's already set in stone. If they need 109% for break-even, maybe the should use the A319 for the obvious money maker of course if those routes are generating cash...LAS/SEA/SFO/RSW/TPA/MCO. I would return the CRJ's and try to get a good lease on the Q400. Seems like a perfect choice for EWR/HPN/BDL/GSO/CLT/BNA. And, to save some cost, pull out of the big cities MAIN airports! I.E. MDW instead of ORD, DCA instead of IAD. I would drop the cities where they are very close to another serviced city. MCO/RSW/TPA/PBI...just my thaught
The dude abides
 
tozairport
Posts: 463
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RE: FLYi Files For Bankruptcy

Tue Nov 08, 2005 2:17 am

You know, it's funny. Bubble jet, DAL, and NWA all based their business plans on one fundamental idea - kill United. AMR went on running a business and worked on competing with United. So which was the better plan???? Skeen has lost over $100 million in cash - he should have to pay it back to the creditors. The sad thing is his management incompetence will probably be rewarded with a board seat at another airline, just like Jimmy Goodwin.  vomit 
Meet the new boss, same as the old boss.
 
b777a340fan
Posts: 651
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RE: FLYi Files For Bankruptcy

Tue Nov 08, 2005 2:23 am

Not to sound like a smart ass, but DUH!  Silly I (an engineer) could've told Flyi that their business plan wouldn't float, it was a ship sinking day after day after day after day... My question is: why didn't they file for bankruptcy before the October 17 deadline? Northwest and Delta did in order to benefit from the old/more lenient bankruptcy laws, why not Flyi? I think some financial advisors need to be fired. But IMHO, I think that Flyi may have a chance if investors believe in its restructuring plan. I also believe that a partial failure of the "former" airline was to emphasize too much on routes like Greensboro, Huntsville, Knoxville, etc... Couple flights daily can incur a lot of debts, especially when you don't have a lot of demand. You combine that with competitive airfares from UAL, then your doomed! With low demand, you nonetheless have to have at least three crew on-board each flight, plus maintenance cost, plus fuel, etc... Furthermore, you add their promotional fares of $39/way, how can you make a profit? Accounting 101!!! Not a good strategy!  Sad What I believe it should do, if it gets the chance, is to increase flights to popular destinations like New York, Las Vegas, Florida, etc. where there's a lot more demand, do some fare re-adjusting, and hopefully gain profit from there. Just a thought. Go ahead, start the bashing and criticism! LOL  Big grin
 
N1120A
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RE: FLYi Files For Bankruptcy

Tue Nov 08, 2005 2:24 am

Quoting N1786b (Thread starter):
subsidiaries filed to restructure aircraft leases and other obligations under Chapter 11 of the U.S. Bankruptcy Code.

Restructure what may I ask? The leases for a handful of A319s? Or perhaps CRJs that don't have lease rates that high anyway and that even if they were paying $5 per month for, they would still be murdered on CASM?

Quoting Zvezda (Reply 27):
It would be interesting if UA were to buy them.

If Indy was flying E-190s, I could see that. As it is, UA has neither the money, nor the inclination to buy DH
Mangeons les French fries, mais surtout pratiquons avec fierte le French kiss
 
airlinelover
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RE: FLYi Files For Bankruptcy

Tue Nov 08, 2005 2:29 am

Independance has been a company doomed from the get-go. When they were still ACA, they screwed things up big time, but unfortunately the management is the same now as it was then. Their idea of a low-cost the way they have it is preposterous. All I can say is good riddance, I've had the displeasure of dealing with their management before..

Chris
Lets do some sexy math. We add you, subtract your clothes, divide your legs and multiply
 
UA744Flagship
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RE: FLYi Files For Bankruptcy

Tue Nov 08, 2005 2:41 am

Quoting Zvezda (Reply 27):
It would be interesting if UA were to buy them.

It seems that the company has been planning on a DH reduction/elimination for next year.

As many know, lots of F/As are being hired for next summer's schedule.

Expect a major IAD expansion, especially international.

I doubt a purchase by UAL... more probably is a YV acquisition of assets, and conversion of the DH AOC into another regional subsidiary with less restrictive labor agreements.
no wire hangers!
 
cloudy
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RE: FLYi Files For Bankruptcy

Tue Nov 08, 2005 2:43 am

Quoting Lightsaber (Reply 28):
Interesting facts. I'll agree with the chorus. I'm surprised Boyd hasn't written anything about this yet. Apparently, A.net is faster!

There's not really much for him to say that he hasn't already said many times in the past few weeks. He hasn't commented on Virgin much, not it a long time. If Virgin buys a few assets he may have something to say. He tends not to say anything unless he thinks something is obvious to him but not obvious to more "mainstream" observers. Boyd has some egg in his face on this one because he thought Independence was a good idea when it was launched, though that was before $60 oil. Boyd's thinking also may have been influenced in that case by the need to avoid pissing off the smaller airports that hire him to do studies, etc. Many of these places benefited or hope to benefit from Independence air service.

If experience serves, he may post another diatribe reiterating that most of Indi's traffic will not be replaced. This would be because the routes were never economical in the first place without the support of a code-share partner like United. The Airbuses would have been better had there not been so much low fair competition from BWI, etc. Jetblue and Airtran competed for connecting traffic.

Make no mistake about it, Indi is gone.My guess is even without the regional jets, they would still be gone. It would take longer, but they would be gone just the same. If they are "saved" it will only be in the same sense that TWA was saved. It will be part of something else and a shadow of its former self - the remnants of what would legally still be a liquidation. And this is the best case. The chances of the corporate entity called Independence air, the ridiculously low fares it spawned, or Indi's brand identity surviving are near zero.
 
irelayer
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RE: FLYi Files For Bankruptcy

Tue Nov 08, 2005 3:05 am

This is completely ridiculous. FLYi should be OUT OF BUSINESS starting yesterday...and now they are "restructuring"? I doubt there is much of anything to restructure. Are they going to move around some office furniture? Maybe redecorate? I mean that is all that they really "own". Must we have another airline sucking the bone dry?

-IR
 
starrion
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RE: FLYi Files For Bankruptcy

Tue Nov 08, 2005 3:19 am

I'm as surprised as anyone that they got DiP financing. What assets did they have to put up that wasn't morgaged to the hilt already?
Knowledge Replaces Fear
 
kiwiandrew

RE: FLYi Files For Bankruptcy

Tue Nov 08, 2005 3:22 am

Quoting Starrion (Reply 44):
I'm as surprised as anyone that they got DiP financing.

I haven't read anywhere that they have got DiP financing - have I missed a post somewhere ?
 
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LN-MOW
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RE: FLYi Files For Bankruptcy

Tue Nov 08, 2005 3:23 am

Quoting Clickhappy (Reply 35):
does this mean no more larry_da_liquidator???

He'll find another board .. he's already been on the UAL board, but I think it's too quiet for him...
- I am LN-MOW, and I approve this message.
 
N766UA
Posts: 7843
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RE: FLYi Files For Bankruptcy

Tue Nov 08, 2005 3:28 am

Too bad, so sad.

I really feel sorry for the employees at Indy. With the exception of their IAD staff I think they have some of the hardest working individuals in the business, especially their flight crews. However, Independence is an airline that deserves to die. IAD is a terrible hub for an LCC, their business plan is a joke, they can't do anything right. I love how they were at the Cleveland Airshow last month getting all kinds of people to sign up for their FFP programs and credit card crap and then 3 weeks later they decide they're gunna leave. Thanks for yet another shaft, Indy.
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A330323X
Posts: 2666
Joined: Thu Oct 09, 2003 4:06 pm

RE: FLYi Files For Bankruptcy

Tue Nov 08, 2005 3:41 am

Their fleet plan of the minute is apparently for 30 CRJs and 12 A319s. This document also talks about how it was everyone else's fault (fuel, United, US Airways, Delta...) except theirs that their business plan doesn't work.

They filed a motion to reject the leases on 21 CRJs, 2 FRJs, and 4 J41s, and to abandon 1 owned CRJ and 4 owned J41s. Tail numbers are all given in the motion. It appears, for whatever reason, that they will have 36 CRJs remaining in the fleet after the lease rejections/abandonments, though they claim to only require 30.

The only other mildly interesting filing was a list of the 40 largest unsecured claims. As some other airlines have done, they didn't include future aircraft purchase commitments.
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skytony
Posts: 107
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RE: FLYi Files For Bankruptcy

Tue Nov 08, 2005 3:44 am

It is quite interesting to be reading these posts saying that Independence Air will be going into chapter 7 and they have a horrible business plan, when just a few years ago people on airliners.net said that they would be the end of United and TED. FlyI would be a great new LCC that would dominate markets from IAD. Interesting how quickly people turn.
Lower your expectations! You will always be pleasantly surprised!