Filing Ch 11 Rumor
 

Rumor is that Ch 11 is to be filed today. From an inside person, no further details.

Good news since that means they're not liquidating their assets (yet).

When you file Ch. 11, you need assets. FLYI doesn't have any. From what I have heard, they may go straight to Ch. 7 and try and liquidate whatever they can.

Good point. It looks like that's the way it might go.

Is this a rumor mill or what? I don't know about you guys, but I'm headed out to Dulles to get me some souvenirs!

Save some for me. They are a wonderful airline.

If only the people making posts like these (and the media) realised how far off base they are.


Cheers.

Hopefully they are off base, and of course the same rumor went around both Monday and yesterday.

Oh, you know, my post above wasn't as clear as I should have made it. I am not saying that financial trouble is far off base --- we all know that and will see how it plays out, but the daily speculation is off the mark.


Cheers.

Well it's another day, I suppose we'll get the same rumors?

Maybe Chapter 7 today???

article I can not read at online.wsj.com
 

[$$] FLYi Is Seeking Fresh Financing
at The Wall Street Journal Online (Tue, Sep 20)

Anyone able to read this article?

I read the article. While I was sitting in a DH jet, no less.

The article didn't say anything new. FLYI is in financial trouble, seeking investors, may file for bankruptcy, stock price is down, high fuel cost, etc etc etc... blah blah blah.

Latest rumor is this one:

No more IND, SWF, SDF, or JFK as of Oct. 30. No more SEA or SFO as of Nov 30. Ops being moved from JFK to LGA with 2 daily A319s as of Nov. 1. Also, starting mid Dec. Flyi will serve SJU with the A319.

Also saw this rumor on a different website:

Dropping SEA, SFO, IND, CLE, SDF, SWF and JFK. We are replacing them with LGA and San Juan, PR.

Seems like your inside person has as much factual information as the rest of us armchair quarterbacks on here. (Sep 23 today, 2 days after this "prediction)

Kerry Skeen and company are out and about, hustling for investment money right now. If they aren't successful, it's time for the Chapter 7 party for sure.

Final Days
 

At this is like the final days of Pan Am. The route structure changed so often (trying to make a buck), that no one was quite sure where they flew.

Independence Air was a multi-million bomb based on one man's ego.

There is no reason for this or any other airline, to file Ch. 7. (Well, yes, there is a good reason, but it isn't going to happen).

The initial filing will always be Ch. 11. A 7 is an immediate liquidation and all the "old" players have no say in what happens. The Ch. 7 Trustee becomes the immediate "owner" of the business and has to liquidate it as efficiently as possible (which, rarely, can include a short-term operating case while looking for a buyer). The Ch. 11 keeps the current players at least temporarily employed while they shop out their new jobs within the industry - and other than their stock (which is already worthless), it isn't their own money at that point being played with for the attempted reorganization.