Airline About To Kick The Bucket

[coolflyingfool]

Just announced that 5 cities will be cut on OCT 30 and possibly 2 more in the very near future. NYC ops will move from JFK to LGA so I guess it is really only 4 cities. I think that FLYI is truly in a corner now with no way out. It is extremely hard to shrink yourself in to profitability. If you cut 30 planes and 10 cities, things must be absolutely horrific. Just my thoughts...........

 

[mneagle]

This looked like a pretty good airline- an personal entertainment system on all flights for $5? Man, I'd love to fly with them!

 

[AnalyzeThis]

I really wish them luck.....I have flown them and it was great.......

 

[TheDog2004]

Why do people call Indy Air a 'low cost carrier'? It's not. They are a 'low fare' carrier, but not 'low cost'.

 

[coolflyingfool]

I was looking into flying IndyAir on a SEA-PVD run before SEA is dropped. The fare was $399 for each direction. So, I booked point-to-point and saved myself over $300. They had SEA-IAD for $99 and the same for IAD-PVD and the same on the return. In a market like SEA-PVD they are going head to head with WN, the fares should match. Perhaps this is why IndyAir is in trouble........... Just my $.02............

 

[whlinder]

They are in trouble because they can't get you or anyone to pay their high fares. They have no problem filling the planes with cheap fares but can't convince a soul to buy their highest fares.

 

[insp89]

Visit www.charlotte.com, Article on Independence Air [9-26-05].

 

[SVQLBA]

They are in trouble because they can't get you or anyone to pay their high fares. They have no problem filling the planes with cheap fares but can't convince a soul to buy their highest fares.

[post="305523"][/post]​

... and in the process have trashed east coast yields for all carriers because of the me-too pricing model they all slavishly follow.

 

[JetClipper]

Just announced that 5 cities will be cut on OCT 30 and possibly 2 more in the very near future.  NYC ops will move from JFK to LGA so I guess it is really only 4 cities.  I think that FLYI is truly in a corner now with no way out.  It is extremely hard to shrink yourself in to profitability.  If you cut 30 planes and 10 cities, things must be absolutely horrific.  Just my thoughts...........

[post="304302"][/post]​

In an article in the September 26, 2005 Washington Post, FlyI Spokesperson Rick DeLisi says that the company's decision to drop flights to the West Coast is "part of our overall strategy to continue to find ways to operate a far more fuel- and cost-efficient system." He later goes on to say that "The West Coast service did very well as far as attracting customers...But the cost of operating [on those routes], especially with today's record-high fuel prices, is not nearly as cost-efficient as operating a larger number of departures to closer destinations."

Maybe it's just me, but it seems that dropping long-haul flights will increase CASM, while decreasing aircraft utilization. Even more baffling, FlyI will still fly its twice-daily IAD-LAS services; why continue to serve a market that attracts low-cost carriers (real ones), charters, etc. like moths to a flame?

 

[nycbusdriver]

Well, I assume from all the posts about the great service and low fares that Independence was the carrier with the pricing power in all its markets. They set a low price, and eveyone else had to scramble to match them.

Did anyone tell the folks running FLYi that they need to meet their costs AND make a modest profit when they set that price? My economics education amounts to, literally, ECON 101. Even I can figure out that you can't have "loss leader" pricing on EVERY product you put out.

From the way they did business, it appears that their only interest was burning through their investors' cash to force everyone else to burn through cash, too. They had a 45% load factor in December, 2004. DECEMBER! With Rj's! 45%!
It's simply a miracle that they've survived this long. (Okay, the irony of that last sentence is not lost on this USAirways employee. Chill.)

I'm sorry to see anyone lose their job over incompetent mismanagement. Maybe they will get saved if they can re-up with a larger carrier to provide feed. There might be some value left in that scenario.

 

[JetClipper]

I'm sorry to see anyone lose their job over incompetent mismanagement. Maybe they will get saved if they can re-up with a larger carrier to provide feed. There might be some value left in that scenario.

[post="306198"][/post]​

Unfortunately, I think Kerry Skeen has way too big an ego to go crawling back to DL or UA hat in hand. Not too worry, though; I'm sure he's got his golden parachute safely stored somewhere.

 

[qwerty]

He's cutting the deadweight up top too. Denise Womble, VP of Sales and Reservations was recently excused.

 

[Adam4848]

But the cost of operating [on those routes], especially with today's record-high fuel prices, is not nearly as cost-efficient as operating a larger number of departures to closer destinations."

Yes but doesn't it cost more to fly little short hops between cities closer together because of landing fees. I've heard many times airlines make most money on the long hauls becuase of fares and less landing fees because their in the air and too bad it didn't work out for them :glare:

 

[Globetrotter11]

In the news today:

NEW YORK, Oct 7 (Reuters) - Discount carrier Independence Air (FLYI.O: Quote, Profile, Research) said on Friday that it had named David Asai, a longtime executive with the company, as its new chief financial officer.

Asai replaces Richard Surratt, who has resigned to pursue other opportunities, Independence Air said. Surratt will stay until Oct. 28 to ensure a smooth transition.

 

[coolflyingfool]

It seems like that almost every time a CFO bails, the airline files BK. I do give Indy credit for hanging as long as they have. Maybe they too can pull off a USairways deal and stay around. It truly seems odd to me that the only West Coast route to stay is LAS. LAS is one of, if not the lowest RASM city in the US. You are going head-to-head with WN, AWA, and UA(Ted) on nonstops and against all the rest on direct or connecting service. Just my thoughts............