mid,
Please explain how FlyI has a shot at making it. I'd really like to know. I don't want to see them fail, I am pleased they have brought cheaper travel to IAD, they have nice people, etc. However, an airline cannot sell (on average) tickets that do not even cover the cost of transporting the seat indefinitely. The 4 bankrupt carriers don't do that. So please tell me how FlyI can make it.
Airlines do not exist to provide transportation as cheap as possible. They exist to make money for their shareholders. Only Southwest has been successful doing that for an extended period of time and through all economic cycles. FlyI's fares are so cheap that they have no chance at making money at today's fuel prices and can't raise their fares because then even fewer people will fly them. Remember, FlyI would have lost money in Q2 even if they hadn't paid a dime for jet fuel. Do you really think the 4 major carriers operating under Chapter 11 protection would be losing money or be bankrupt if they didn't have to pay for fuel?
Fuel is speeding up FlyI's demise but it is not the cause of it. Perhaps if fuel was cheaper FlyI would be able to turn the airline around with more time.