It is officially over. Goodbye FLYI

 
Old Jan 2, 2006, 3:06 pm
  #16  
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DULLES, Va. January 2, 2006
Independence Air To Discontinue Operations

Airline Will Keep Flying From Now Through Thursday Evening, January 5th

Dulles, VA, (January 2, 2006) – FLYi, Inc., (Nasdaq: FLYIQ) parent of low-fare airline Independence Air, announced today that because of the continued financial challenges facing the company, it will voluntarily discontinue all scheduled flights planned to depart after 7:00pm* on the evening of Thursday, January 5th. The company is seeking bankruptcy court approval to automatically refund customers with reservations for flights scheduled to depart beyond that time.

Customers with roundtrip reservations for trips departing before the cessation of operations (including those customers who have already departed) but were scheduled to return afterwards will be contacted by Independence Air and offered the opportunity to change their return reservations to one of the remaining days of operation. All change fees will be waived for changes made by phone. The company is also seeking bankruptcy court approval to automatically refund customers for those return flights that are not rescheduled. No refunds will be offered for free tickets or vouchers.

Customers whose trips are scheduled between now and Thursday evening should expect the same excellent service that Independence Air has become known for.

Independence Air Chairman and CEO Kerry Skeen said, “While we’ve been clear in reminding everyone that this was a possibility, we remained optimistic that there would be a way to avoid reaching this juncture. To date there has not been a firm offer put forward that meets the financial criteria necessary to continue operations as is. Therefore, we are voluntarily discontinuing scheduled service as of Thursday evening.

We offer our sincere thanks to the over eight million customers who have flown with us since the launch of Independence Air, and to the communities across America that we have served.”

Skeen continued. “And most importantly, we thank our extraordinary employees for creating an airline brand that has been so universally praised by our customers. Our people have demonstrated that they are capable of operating an airline that quickly rose to the top of the rankings in every major independent survey of airline quality and customer satisfaction. And while this is a profoundly sad day for all of us, we could not be more proud of our employees and everything they have accomplished.”

Customers are urged to visit the airline’s www.FLYi.com website if they have further questions as callers to the company’s toll-free number will likely experience long wait times.

Independence Air began service on June 16, 2004 and currently offers over 200 daily departures to 37 destinations.

The company has advised the public, and reiterates, that the likely outcome of the company’s bankruptcy proceeding is the cancellation of the company’s existing common stock without consideration, making FLYi stock of no value.
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Old Jan 2, 2006, 3:09 pm
  #17  
 
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It's a sad day!
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Old Jan 2, 2006, 3:37 pm
  #18  
 
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See what happens when an airline sells seats below cost

Selling airline seats below cost is unsustainable and any airline that continues to sell below cost will go out of business.

Solution: Raise fares

RC
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Old Jan 2, 2006, 4:28 pm
  #19  
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Agreed, but would anyone have flown if they raised fares to breakeven on the RJ's??
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Old Jan 2, 2006, 4:30 pm
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Pax would fly if the service was superior, flight times convenient

I think the level of service and flight times are more important to most people than the price.

I know that is the case for me.

RC

Originally Posted by formeraa
Agreed, but would anyone have flown if they raised fares to breakeven on the RJ's??
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Old Jan 2, 2006, 5:54 pm
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FT is a weird bunch, and IMHO, not a proper place to do a market basket study -- we definitely get a cross section of opinions and experiences, but I'm not sure it's enough of a representative sample to make economic decisions on behalf of the airlines.

That said, my travels are 100% discretionary, and COMPLETELY depend on the price of the ticket -- within reason. I don't fly places to fly there just because the ticket costs $50 (or $100) but on the flip side, I won't do as much travelling if the ticket prices are north of $500 rt for a transcon.

In today's travel environment, I'd rather pay $250 or $300 to sit in coach and be ignored than pay $500 for excellent service. Perhaps if the entire coach concept was reworked, I'd change my mind, but with the current product and offerings, you won't see me paying high fares any time soon. Of course, I carry on my own DVD player and selection, sleep quite a bit, or read a book, so I'm not looking for the airline to entertain me. I'll pay less to get less.

So, I'd like to challenge RC's statement that "most people" choose their travel based on schedule and service. In fact, I'd wager that service is dead last, as most leisure travelers are price conscious, and most corporate flunkies have bean counters telling them who they can and cannot fly.

If service was a priority, YX (Midwest Airlines) would be larger than WN, and they would not have cut out their fabulous meals in the face of economic pressures.
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Old Jan 2, 2006, 7:06 pm
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How long til this forum gets the axe?
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Old Jan 2, 2006, 8:32 pm
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Independence Airlines is a class act, including this latest announcement which gives ample warning and provides clear information about the shutdown process.

I flew about 20 segments on Indy during its 18 months, and every employee was pleasant and helpful. Every single one. I'm so sad to see this airline go, and I wish all the best for its fine employees.

Thank you, Indy.
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Old Jan 2, 2006, 9:01 pm
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I'm a bigger fan now of service and schedule over being completely price sensitive, but that's a more recent change. Prices still have to be something I find reasonable, but I won't jump over to another airline just to save a few bucks anymore.

On another note, a former employee just mentioned to me how it seems like in the airline industry it's just another example of how the nice guys finish last.
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Old Jan 2, 2006, 10:08 pm
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Originally Posted by humanoid94
I wrote a little trip report about an awesome experience I had on Indy Air last summer. I posted it here. I, for one, am really sad to see them go.
GLiDE pass?
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Old Jan 3, 2006, 6:18 pm
  #26  
 
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Originally Posted by Radiocycle
Selling airline seats below cost is unsustainable and any airline that continues to sell below cost will go out of business.

Solution: Raise fares

RC
10. Raise fares.
9. Cram as many uncomfortable seats as you can in the cabin.
8. Cut back on amenities.
7. Eliminate snacks and meals.
6. Don't allow your passengers to reserve seats.
5. Charge at least $100 for the slightest itinerary change.
4. Hire too few flight attendants.
3. Dominate your hubs and crush any competition.
2 Only publish the one-way fare (without fees and taxes); let your customers do the math.

And the number one rule of any modern day airline:

1. Always begin any announcement of an increase in costs or decrease in service with the following sentence: "To thank our passengers for their loyalty, exciting new changes are in store in the coming months!"

R.I.P., Independence Air. Thanks for trying to break the mold.
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Old Jan 3, 2006, 8:16 pm
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how many of you actually thought DH was going to last with the prices they were charging. i mean, seriously. i'm sure it was a joyride, but you couldn't possibly think it'd last forever.
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Old Jan 5, 2006, 12:45 am
  #28  
 
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I'm not going to fault their low fare (even down at or below marginal cost on some seats) attempt to lure passengers -- they had to start somewhere. I think the initial failure was staying out of the GDS systems. It took me a lot to get my coworkers to look at Independence for booking, even with the 20% corporate discount.

Even though I managed to get a round-trip to LAS for $125 all-in, there were other fares I picked up that were well in excess of their cost for the seat. I had multiple $400+ seats to SJC and a number of walk-up seats that we needed for some business travel. Just in the last few months, many of my coworkers that weren't excessively frequent fliers were switching over to the DH flights -- one preferred the DH flights from IAD-SFO over the B6 equivalent to OAK. He was a big fan of the entertainment device, even at a $10 surcharge.

I think if the fuel prices had held lower they would have still lost money, but been able to last longer and into the apparent upturn in the industry we're going to see in the next 12-24 months. At that point they may have been able to get enough A319 planes to offset the high RJ CASM. It was a gamble that lost, but I don't feel it was as excessively stupid as some others seem to believe. It was just another business plan that ultimately didn't make it.
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Old Jan 5, 2006, 7:45 am
  #29  
 
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Originally Posted by DHAST
So, I'd like to challenge RC's statement that "most people" choose their travel based on schedule and service. In fact, I'd wager that service is dead last, as most leisure travelers are price conscious, and most corporate flunkies have bean counters telling them who they can and cannot fly.

If service was a priority, YX (Midwest Airlines) would be larger than WN, and they would not have cut out their fabulous meals in the face of economic pressures.
I find very little difference in service for domestic flights among most US airlines. So for me it's 1) price and 2) schedule convenience. Southwest obviously does things differently, but I have learned to work around their idiosyncracies and use them as often as I would any other airline. In fact, for west coast travel I use Southwest almost exclusively because they go to more places more frequently than anyone else and charge the same or less than anyone else.

As far as Midwest, I think their lack of size is a conscious effort on their management's part not to expand - or at least to expand very slowly in a way that they can control and not overextend themselves. They have been successful just about every place they have initiated service.
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Old Jan 5, 2006, 11:13 am
  #30  
 
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Red face

Originally Posted by Radiocycle
I think the level of service and flight times are more important to most people than the price.
I truthfully don't think that's the case. I firmly believe that for the majority of pax traffic, fare price is the predominant factor in ticket sales.
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