FAA to fine Independence Air $1.5 million

 
Old Jul 21, 05, 5:45 pm
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FAA to fine Independence Air $1.5 million

Ouch! Does DH even have that much money left?

WASHINGTON (MarketWatch) -- The Federal Aviation Administration has proposed a $1.5 million fine against Atlantic Coast Airlines, now doing business as Independence Air , for operating thousands of flights last September and October that were not in compliance with FAA regulations, the agency said Thursday. The FAA said the company has taken corrective actions. The airline has 30 days to respond to the FAA's proposed civil penalty. The FAA said one plane went 455 flights past its regular heavy maintenance inspection.

http://biz.yahoo.com/cbsmb/050721/e6...2d59.html?.v=1
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Old Jul 21, 05, 8:00 pm
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It should be noted that DH uncovered this situation and took the necessary steps to report it to the FAA and then correct it. As this was taken care of last year, there is no impact upon Independence's operations today.


Cheers.
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Old Jul 23, 05, 11:59 am
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This was news internal to Independence quite some time back, so they've likely been negotiating with the FAA on how to handle it and just now the news is coming out.
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Old Jul 23, 05, 2:41 pm
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Originally Posted by MileageAddict
Ouch! Does DH even have that much money left?
Washington Post says barely

(At the end of the article)
Flyi had $4.98 million in cash and cash equivalents on March 31, according to the company's most recent financial statement. The airline lost $103.7 million in the first quarter and expects to lose money for the rest of the year.

Unless that is a typo?
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Old Jul 24, 05, 12:04 am
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Originally Posted by whlinder
Washington Post says barely

(At the end of the article)
Flyi had $4.98 million in cash and cash equivalents on March 31, according to the company's most recent financial statement. The airline lost $103.7 million in the first quarter and expects to lose money for the rest of the year.

Unless that is a typo?
Nope, not a typo, just a reporter who isn't real familiar with financial statements. In addition to the $5 million in cash and cash equivalents, flyi also had $102 million in short-term investments on 3/31/05. While not cash, they are easily converted to cash. Of course, today flyi may not have anywhere near that much left.

Here's the latest 10-Q:

http://www.sec.gov/Archives/edgar/da...-9427_110q.htm
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