Read in the WP that Independence Air was set to cut its capacity by 25%. Eliminate several flights in many markets and possibly some additional cities.
Does anyone know how many employees this will affect? Are there furloughes announced?
Allows flyI to return 10 CRJ's in February (1Q05)
Gives fly I an option to return 6 to 10 more CRJ's in 2Q05
Restructures lease arrangements on 27 other CRJ's
flyI gets a loan from GECAS for almost $20mil
So, if I am reading this correctly, GECAS is essentially allowing flyI to pay its early termination fees over the life of a 5 year loan. Am I on target here? Seems like an awfully expensive way to get out of leases, but better for the shareholders than the next best alternative (Chapter 11). This looks like a continuing story to me... And a creative move on the part of flyI and GECAS to keep the company solvant.
IF Independence Air cannot get its act together and has to file BK, then how many US airlines would be in BK? 1)United 2)USAirways 3)Hawaiian 4)Aloha 5)ATA 6)??
