Fly I Hits Chapter 11
- Thread starter smfav8r
- Start date
Art at ISP
Veteran
The big question will be IF they can survive. Smart money says they don't have enough unencumbered assets to make it, and that a Chapter 7 is in the wind.
Again just conjecture at this point, but unfortunately for Fly I it makes sense.
Again just conjecture at this point, but unfortunately for Fly I it makes sense.
CruelSummer
Member
- Oct 6, 2005
- 77
- 0
Or will they be absorbed?
Only thing worth any money is probably the operating certificate. Maybe a few slots - do they have any presence at LGA or DCA? Maybe some favorable gate leases at some airports. Nothing much.
Actually, the CEO is very optimisitcally talking about an auction between potential investors who would keep FlyI intact and flying. Way too optimistic, IMO.
ringmaruf
Veteran
They don't fly to DCA. They're starting LGA service with IIRC 3 daily flights, but those use Air21 slot exemptions that can't be sold.
Kev3188
Veteran
Hate to say it, but I have to agree with Art@ISP here. For the employee's sake I hope we're wrong, but I doubt it.....
Ok, then. FlyI has an operating certificate. Nothing much else of value. B)
Gotta agree with you about the way too optimistic thing. This guy is extremely full of himself and not the most intelligent airline mind (despite being in the industry for quite some time). His experience has been as a feeder carrier and he had no clue when it came to a stand-alone airline. Prior to FlyI, he had a mountain of cash (rare in this industry) and he squandered nearly all of it, potentially the jobs of his employees, and rotted the pricing structure for many carriers out of DC w/loss-leader fares all in the name of his own personal greed.
That being said...the "auction" is more of a cry for help rather than a clever idea. They obviously do not have any DIP financing lined up (wonder why
) and are grasping at straws to do anything to stay alive. I did notice that when NWA and DAL went BK, they stated that they would continue to fly their schedules going forward...FlyI just said that they would fly their regular schedule on Monday (today). I see this one going to Ch 7 in the very near term and truly feel bad for those employees that have been screwed out of stable positions as a feeder. We all chat on these boards about inept mgmt at US, DL, AA, NW, UA, etc, but IMHO, this guy is the worst by far. He has not only tainted his own company but has created a pricing vacuum in the FlyI markets. He has been an abomination for his company and the industry.Who ever said I don't have an opinion?
Yeah it is hard to say any management team is worse than what FlyI's has proven to be. The worst part is that they place most of the blame on fuel, yet they would have lost money in Q2 if they had gotten all their jet fuel for free. That is just horrific management.
HighFlyerMiami
Member
- Aug 22, 2005
- 51
- 0
This is going to Ch 7 so fast it will make our heads spin. Come on, this company has had its head up its...since it made that fateful decision to try a low-cost operation with 50-seat RJs?
Yet another "wise" choice by this company...to take on added costs of going Ch. 11 when they could have just gone straight 7. They are trying to squander all of the $$, I think.
yup.
Skeen would be better off taking their 24 mil remaining cash to Vegas and putting it on red at the roulette tables. They would have almost a 50% chance of making some money, as opposed to a 0% chance of making money by flying airplanes.
Nobody had tried this model before... granted, it was a large gamble, but I won't agree that there was a 0% chance of being successful. I give the Flyi kids lots of credit for giving it their best shot. Unfortunately, though, it looks like Ch. 7 is not far off.
corl737
Veteran
- Jun 13, 2005
- 565
- 6
Nobody had tried this model before... granted, it was a large gamble, but I won't agree that there was a 0% chance of being successful. I give the Flyi kids lots of credit for giving it their best shot. Unfortunately, though, it looks like Ch. 7 is not far off.
What's the old phrase ... "It seemed like the right thing to do at the time..."
The recent filing by Mesaba shows that hanging on as a feeder for a Ch-11 legacy isn't necessarily a guarantee of success either. Kudos to FlyI for the attempt to find a different way to succeed. Maybe if fuel had prices had held down... Maybe if they didn't face so much Ch 11 competition in their markets .... Maybe if ....
Best Wishes and Good Luck in the afterlife.
Similar threads
