Bankrupt US Low-Fare Airline to Cease Flying
19 January 2006 5:00am
FLYi Inc, parent of Independence Air, said it will cease its US airline operations this Thursday evening, less than two months after filing for bankruptcy protection and less than two years after its vaunted launch as a low-cost carrier.
The company said in a statement that it is unable to stay solvent in the cash-strapped US aviation industry. “The financial pressures in the industry have prevailed. We have run out of time,” the company said.
Independence Air Chairman and CEO Kerry Skeen said in a separate statement that the company had simply exhausted its options.
Back in November, FLYi filed for reorganization under Chapter 11 of the US bankruptcy code in order to restructure the company´s aircraft leases and other obligations.
