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Independence Air Hits a Downdraft

December 7, 2004
Independence Air started service this year with a burst of enthusiasm and rave reviews from passengers. But already the Dulles-based low-fare airline is struggling to maintain altitude.

Independence Air • Consumer Complaints • Defenders --- News #149; Final Boarding Call For Independence Air • Independence Air Warns Employees the End Is Near • Independence Air Is Bankrupt • Flyi Drops JFK, West Coast Flights • IA's Big Fine Isn't Its First • Independence Air Faces $1.5 Million Fine for Safety Violations • Independence Air's Losses Mount • Independence Air Cuts Fleet to Stay Airborne • Repo Man Visits Independence Air • Independence Air Hits a Downdraft

Biggest problem? Ticket sales are slow. The airline sold only 52 percent of its available seats in November, a slightly worse showing than October.

Most industry analysts say a healthy airline usually sells 70 percent of its available seats.

Company officials refuse to show concern, pointing out that Thanksgiving ticket sales were "excellent," but that travel early in the month was less than expected. The airline also increased the number of seats it had to sell last month, initiating daily service between Washington and Tampa and Orlando, using two 132-seat Airbus A319 aircraft.

Other problems loom on the horizon however. The parent company, Flyi, Inc., has said it would file for bankruptcy protection if it is unable to arrange new lease terms before a scheduled $83 million payment comes due next month.

Some large stockholders are unhappy with the airline's progress and want it to try to get back into the regional feeder business. The company previously flew feeder flights for United.

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