Flyi Lender Repossesses A Crj


Aug 20, 2002
Independence Air Lender Repossesses a Plane

By Bill Brubaker
Washington Post Staff Writer
Saturday, February 12, 2005; Page E01

The parent of financially troubled Independence Air said late yesterday that a lender had repossessed one of the airline's 73 leased regional jets.

Flyi Inc. said the lender, which it did not identify, filed suit against the low-cost carrier in New York after it failed to make a lease payment due last month, according to a filing with the Securities and Exchange Commission.

The disclosure by Flyi comes at a critical time for the Dulles-based carrier, which has been struggling to avoid filing for protection from its creditors.

Rick DeLisi, Flyi's spokesman, said the repossession of the single jet will not affect the airline's schedule of flights, but he declined to comment further. Flyi serves 39 cities out of Dulles with its 50-seat regional jets and 132-seat Airbus A319s.

Yesterday, before Flyi disclosed the repossessed aircraft, Robert N. Ashcroft, an analyst for UBS Investment Research, wrote: "While lessors have little incentive to push Flyi into [Chapter] 11, they're not charities either, and it takes only one to lose patience and issue a default notice to start to unravel the situation." He gave Independence Air a 30 percent chance of surviving as a low-cost airline.

I've forgotten whether or not Ashcroft is on the USA320Pilot list of 'approved' analysts.

Seems to me that FlyI is too 'proud' to file bankruptcy.