Independance Air Off To A Bang In Clt

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Capecod

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Aug 20, 2002
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www.usaviation.com
01OCT04 1444 DH CLTIAD 0815/0940 0 CRJ 50 50 0 2
01OCT04 1445 DH CLTIAD 1015/1140 0 CRJ 50 50 0 1
01OCT04 1446 DH CLTIAD 1150/1315 0 CRJ 50 50 0 3
01OCT04 1447 DH CLTIAD 1330/1500 0 CRJ 50 50 0 1
01OCT04 1448 DH CLTIAD 1555/1720 0 CRJ 50 50 0 0
01OCT04 1449 DH CLTIAD 1830/1955 0 CRJ 50 50 0 1
01OCT04 1450 DH CLTIAD 2045/2201 0 CRJ 50 43 7 1

Got this off the ACA board. This is for there first day of service. Notice 6 of the 7 flights are sold out and the 7th is over 90% full. There overall load factor is something like 48%. 300+ O/D pax gone. U is looking very very fragle. -Cape
 
There is no way they are near breakeven system wide with 45% load factors in August. Those numbers for CLT are impressive, but I wonder how many were on $29 OW fares? Not to mention that you get $25 off your first RT with them, so that works out to a $50 RT CLT-IAD including taxes. They can't make money off of that.
 
Looking at tommorows schedule it appear that there are lots of seats to and from CLT on IAIR. Could be all those freebie tickets the airline probably gave away today to the local chamber hoping to make it look good.

If you check tommorow and next weeks flights on flyi.com you will see all of the flight still have numerous seats to sell.

The only problem with having IAIR is that they are selling tickets way below cost and driving down everyones yields. They are not making a profit and not carrying loads but are still having an impact. Projections have them running out of money by mid summer.
 
PineyBob said:
Rumor has it that Independance Air has already burned through about $150 Million over the summer. My understanding is that they are nowhere near breakeven systemwide
[post="186417"][/post]​
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Not so fast!

NEW YORK (AP) -- Just four months after converting to a low-cost airline, FLYi Inc. faces potential bankruptcy as soon as January amid concerns over mounting oil prices and the deteriorating financial situation at Delta Air Lines Inc., an analyst said Tuesday.
 
FM2436 said:
Not so fast!

NEW YORK (AP) -- Just four months after converting to a low-cost airline, FLYi Inc. faces potential bankruptcy as soon as January amid concerns over mounting oil prices and the deteriorating financial situation at Delta Air Lines Inc., an analyst said Tuesday.
[post="192685"][/post]​
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Story here
 
Things aren't looking good

Analyst: Delta Troubles Could Sink FLYi

NEW YORK (AP) - Just four months after converting to a low-cost airline, FLYi Inc. faces potential bankruptcy as soon as January amid concerns over mounting oil prices and the deteriorating financial situation at Delta Air Lines Inc., an analyst said Tuesday.

UBS Investment Bank analyst Robert Ashcroft said he expects FLYi's September plane occupancy to be flat compared with August, when the airline's load factor declined to 45.1 percent from 47.1 percent. He noted that the carrier's late reporting of last month's traffic could signal disappointing figures.

With the added pressure of oil prices lingering in the $50-per-barrel range, FLYi - now operating as Independence Air - could see its yearly expenses soar by as much as $100 million, he said.

"It's clear to us that FLYi's business plan isn't working," Ashcroft wrote in a research note, adding that the former regional carrier based its discount concept on oil prices of about $30 per barrel and has not hedged against higher costs by purchasing fuel in advance. In recent trading, crude oil was down 72 cents to $52.95 per barrel on the New York Mercantile Exchange.
 
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