Independence Air: Chapter 11 soon?

摘要

Continued high fuel prices and weak yields are beginning to take their toll even on LCC-type airlines in the US, with ATA becoming the first to file for bankruptcy on October 26. Not even the best of the airlines can make a profit at $50 a-bar-rel oil prices in the current domestic revenue environment, as indicated by JetBlue's warning that it will incur a net loss in the fourth quarter. Recent weeks have seen renewed speculation about Independence Air, formerly Atlantic Coast (ACA) and now a unit of FLYi Inc, which has seen very low load factors and horrendous cash burn since launching its regional-into-LCC transformation in June (see Aviation Strategy, July/August 2004). There are fears that the Washington Dulles-based CRJ operator could be forced to file for Chapter 11 in January, when $80m of aircraft lease payments become due (excluding $18m that is currently expected to be paid by Delta).