Northwest Airlines confirmed that it has entered into an agreement to purchase Independence Air's operating certificate and related assets, in hopes of launching a subsidiary carrier. Northwest in a statement said the tentative agreement "is subject to certain conditions which have yet to be met."
In a filing with a Delaware bankruptcy court last week, Independence parent company FlyI Inc. said others had submitted bids, but "Northwest's bid for the acquired assets was the highest and best offer." For $2 million, Northwest would take on Department of Transportation certificates, Federal Aviation Administration certificates, Federal Communications Commission licenses and "assumed contracts," among other assets.
A Northwest spokesperson today said the carrier would not comment beyond its statement, which said, "Under the terms of the recent tentative agreement with the Northwest chapter of the Air Line Pilots Association, a Northwest Holdings subsidiary will have the opportunity to operate 76-seat aircraft. By purchasing the FlyI certificate, Northwest hopes to accelerate the development of this subsidiary, which will create job opportunities for furloughed Northwest Airlines pilots." The court is scheduled to hold a sale motion on March 20.
Ceasing forever its more than 200 daily departures to 37 destinations, Independence Air this year bowed to the pressure within the ailing airline industry as it discontinued service
(BTNonline, Jan. 3). Independence Air in June 2004 started its low-fare service from Washington Dulles International Airport, transitioning from serving Delta and United airlines as feeder carrier Atlantic Coast Airlines. Independence Air launched with aspirations to build a coast-to-coast low-fare alternative
(BTNonline, Nov. 7, 2005).