Dulles-based Independence Air filed for bankruptcy protection last week, a move that could leave many AU students with one less traveling option in the coming months.
According to washingtonpost.com, Flyi Inc., the airline's parent company, said the Chapter 11 bankruptcy filing will have no effect on passengers for now and vowed to continue through the holiday season its 220 daily departures to 36 different destinations.
"Chapter 11 is a legal process that allows a company to continue to operate its business while it restructures its debts in an organized, court-supervised setting," according to Independence Air's web site, www.flyi.com. "It will allow Independence Air to suspend payment of certain expenses, such as excess CRJ [plane] leases, as part of an overall cost reduction program."
David Leggett, father of AU student Chris Leggett, who was on his way back to Boston on an Independence Air flight, shared his worries about the company's impending bankruptcy. He is worried the bankruptcy could disrupt a Christmas trip home for his son and his own trip to watch an AU swim meet in two weeks, according to washingtonpost.com.
"I'm a little worried," said Chris Leggett, a sophomore in the School of Communication. "I hope I can go home cheap on Flyi."
Ads featuring one-way fares as low as $29 could not overcome rising jet fuel prices and stiff competition.
According to www.flyi.com, " ...the company is not anticipating a lengthy multi-year bankruptcy like those of other airlines in the recent past."
The only hope for the airline is for a new investor to "either finance what we are doing today or, more likely, finance a transition" to a different business model, according to Kerry B. Skeen, Flyi chief executive.
The Web site also goes on to explain the airline's plans if no investors are found within 60 days. "It is the company's responsibility to inform its employees and the public that if there is no interest expressed during this process, the final step could be to discontinue operations."
Some AU students said they were surprised by the decision to file for bankruptcy.
"I must say that despite the fact that many people believe that Flyi was doomed from the very beginning, I am still surprised by the news," said Derek Heiss, a sophomore in the School of International Service who flies Independence Air home to Pittsburgh for breaks. "So I guess you could say that what was once inexpensive and efficient will no longer be cheap."
Independence Air broke off from United Airlines two years ago in the hopes of creating a budget alternative, according to www.washingtonpost.com.
"I don't think they'll pull through," Heiss said, "There was never anyone on the flights that I took this past year"
