Ceasing forever its more than 200 daily departures to 37 destinations, Independence Air on Thursday evening will bow to the pressure within the ailing airline industry as it discontinues service. In a letter posted on its Web site, the carrier told customers, "The financial pressures in the industry have prevailed. We have run out of time."
The airline's parent company, FlyI, in early November filed for Chapter 11 protection and now the 18-month-old carrier said it is seeking further bankruptcy court approval to refund customers with reservations for flights scheduled to depart after 7 p.m. on Thursday, when the carrier officially ends operations.
Under the Aviation and Transportation Security Act, customers with flights booked for after operations cease may fly standby on other carriers sharing routes with insolvent airlines within 60 days the scheduled flight. However, Independence noted, "The U.S. Department of Transportation has ruled that airlines who offer the stand-by transportation may charge $50 one-way per person to cover related expenses."
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).
"While we've been clear in reminding everyone that this was a possibility, we remained optimistic that there would be a way to avoid reaching this juncture," said Independence Air CEO Kerry Skeen. "To date, there has not been a firm offer put forward that meets the financial criteria necessary to continue operations as is. Therefore, we are voluntarily discontinuing scheduled service as of Thursday evening."