First let me wish the best of luck to the employees of FlyI, and that I certainly enjoyed the flights I took on them. It is unfortunate that your management could not figure out how to come even close to breaking even.
In today's Post Skeen has the following to say:
"When we planned to launch, it was a whole different world in terms of the fuel situation," Skeen said in an interview yesterday. "The industry turned wrong on us. Nothing is perfect."
Of course, had fuel been free, FlyI would still have lost money.
Even as fuel prices climbed and the airline tried to grow, competitors slashed their prices, awarded bonus frequent-flier miles and added flights on routes where they competed with the beleaguered airline.
"Every outside pressure kind of manifested itself," Skeen said.
You mean airlines matched other airlines prices?
That
never happens in the airline industry! And they competed with new entrants by adding flights and bonus miles? What a totally new concept!
They had numerous chances to adjust their business plan to give themselves a chance but stubbornly refused.