FlyI faces cash crisis
NEW YORK, March 17 (Reuters) - Low-cost airline Independence Air, which is controlled by FLYi Inc. (FLYI.O: Quote, Profile, Research) , said in a regulatory filing that is under pressure to boost revenues and cut cuts to avoid a "liquidity crisis," and its shares fell 5.6 percent on Thursday.

Faced with fierce competition and record fuel prices, Independence Air has seen revenue "falling significantly below anticipated levels and the company expending cash at an unsustainable rate," the company said in the filing with the Securities and Exchange Commission made late on Wednesday.

Dulles, Virginia-based Independence said in the filing that it had pledged nearly all of its assets in a recently completed restructuring, risking a cash shortfall if passenger traffic remains weak and fuel costs remain at their current record high levels.