Independence Air Cuts Capacity 25%

[magsau]

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?

 

[funguy2]

Well, yesterday flyI announced a new agreement with GECAS:

FLYi, Inc. Announces Agreement With GECAS

It looks like this agreement does the following:

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.

 

[coolflyingfool]

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)??