Flyi last airline is in bankruptcy protection
Independence Air, the low Dulles, the carrier United Airlines, abandoned two years ago in the hope of creating another budget yesterday, the protection of bankruptcy in one step could also be the charm of airline in-transition.
Flyi Inc., parent of the airline promised to continue normal operations during the flight seeking court permission to auction themselves, but they warned they could be obliged, when new investors or a buyer are not in 60 days. Industry analysts, many of whom felt the airline was sentenced at the outset expressed doubts yesterday that investors are ready to bet on a recovery.
The publication is to call into question the employment of more than 2000 Flyi workers, most in the business hub of Dulles airport and near the plant. The company had more than 5000 employees are exploited as material support for investors United Airlines for 15 years before moving to his own two years ago.
Flyi said the filing of bankruptcy, Chapter 11 does not affect passengers at the moment and has promised to continue to holiday periods in its 220 daily departures to 36 destinations with a mixture of 50 seats regional and airplanes of 132 seats Airbus.
No refund is offered to passengers, cancel their reservations, while the company is bankrupt, “said spokesman Rick DeLisi company. “Our prices are not always reimbursed,” he said.
After the independence of his first flight Air Dulles, 16 left in June 2004, Chief Executive Flyi B. Kerry Skeen seemed convinced that the passengers of an airline offered cheap, quick, turning flights and the fact that even in a marketing campaign Spry as “polar opposite of the lumbering, arrogant major suppliers.”
But the market for Skeen’s dream never materialized, and even Slick ads trompetenden $ 29 One-Way-rates could not be overcome aircraft rising fuel prices and competition forced to run Flyi that lose money flights with fares often a bit like Greyhound Bus. In accordance with the intention of his image of an independent airline alive, Skeen, against the analysts and others rejected a bid, for which candidates budget Mesa Air Group Inc. and refused to renew his company as a regional role for United Shuttle.
“He was threatened, if we stayed with United, or if we do not,” said Skeen, accepted a pay cut of 25 per cent, up to $ 277500 per year, as part of an economy d ‘ Efforts costs by 5 percent reductions for non-payment - Union Flyi employees. The firm said it is also in negotiations with the unions to change “the salaries and operating rules.
The only hope now Skeen, said in an interview for a new investor to finance, is what we have today, or what is probable, funding for a transfer to another model.
“We do not have the advantage of a crystal ball, if we launched, that the independence of fuel prices would almost triple. And the point of fuel prices under [Hurricane] Katrina was that the melting sugar on the cake, “says Skeen.
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