Independence Air

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Independence Air
IATA
DH		 ICAO
IDE		 Callsign
Independence
Founded 1989 (as Atlantic Coast Airlines)
Ceased operations 2006
Hubs Washington Dulles International Airport
Frequent flyer program iCLUB
Fleet size 85
Destinations 37
Parent company FLYi, Inc.
Headquarters Dulles, Loudoun County, Virginia
Key people Kerry Skeen (CEO)
Website: www.flyi.com

Independence Air was a low-cost airline, owned by FLYi, Inc., based in Loudoun County, Virginia, United States (near Washington, D.C.) that operated from 1989 until 2006. Its route network focused on the East Coast of the United States, but it also extended to the West Coast. The route network was based at Washington Dulles International Airport.

It ceased all operations at 8:24 p.m. UTC-5 on January 5, 2006. The airline had been in Chapter 11 Bankruptcy since November 7, 2005,[1] and there had been discussion of a last-minute deal that could save the airline, but that did not happen.

Contents

[edit] History

Independence Air started life as Atlantic Coast Airlines on December 15, 1989, operating feeder services as United Express for United Airlines and Delta Connection for Delta Air Lines.[2] After United withdrew the contract when the regional jets would not agree to the concessions it requested, Atlantic Coast reinvented itself as low-cost carrier Independence Air.[3] It was announced on November 19, 2003, and operations as Independence Air began on June 16, 2004. At its inception, it was unique among low-cost carriers in that its fleet mainly consisted of 50-seat regional jets, although the airline later introduced larger Airbus A319 equipment. It was based at Washington Dulles International Airport and contributed to Dulles' substantial increase in passenger use, bringing one million new customers to the airport in its first three months of operation.[4]. The airline was also credited with helping to reduce fares to and from the airport.[3]

[edit] Criticism

From the beginning, the airline faced criticism. Some believed that it expanded too quickly, had a poor fleet mix[5] and did not have the resources to compete with the legacy airlines, who despite their own financial troubles, would match the fares offered by Independence.[3][6] Further, industry experts believed that the reasons behind the airline's failure were not problems with the low-cost strategy, but miscues on the part of airline management.[7] Problems, including flights flying far below capacity, were identified in October 2004,[8] less than six months following the airline's launch as the parent company attempted to avoid bankruptcy. [9]

[edit] Promotional activities

On May 20, 2004, even prior to its inaugural flight, Independence Air signed a deal[10] with the Washington Redskins to become the official airline sponsor of the team for three years.[11] In the summer of 2005, the airline offered the GLiDE Summer Travel Pass for college students.[12] Upon paying $250, the customer would be able to fly at no cost (after paying taxes & airport fees) from May 1-Aug 31, on Tuesdays, Wednesdays & Saturdays. This move was meant not to bring in revenue, but to try to fill seats that otherwise would have flown empty. This promotional tool was not enough to prevent trouble, due in part to the airline losing almost $150 million in its two years of operation.[6]

Independence Air became quickly known for the humorous touches it added to the flying experience, such as replacing the flight attendant safety announcements with prerecorded versions of the warnings by celebrities such as James Carville and Mary Matalin.[13] They also attracted attention from their partnership with the Laugh Factory[14] and the use of former baggage handler Dave George as "the Flyi Guy" — the airline's resident comedian.[15]

[edit] Decline

Independence Air Airbus A319
Independence Air Airbus A319

After its emergence as an independent brand name, Independence Air became known for offering very low airfares: as little as $29 one-way to Florida from Washington Dulles International Airport.[16] However, the company never overcame a series of financial problems during its transition and its decline started only six months after its launch.

In February 2005, one of its aircraft was repossessed after the company missed a lease payment,[17] after trying and failing to restructure the lease.[9] Later that year, three more aircraft were sold or repossessed and in November 2005, FLYi, Inc., their parent company, declared bankruptcy.[18] The company cited rising-costs in the airline industry as the reason its low-cost strategy did not succeed.[6]

In the intervening months between FLYi's declaration of bankruptcy and Independence Air's cessation of operations, a number of airlines expressed an interesting in acquiring the airline's assets including: Mesa Air Group, United Airlines and Richard Branson. [19]

Not finding a suitable buyer in time to keep the planes flying, Independence Air announced on January 2, 2006, that it would cease operations at 7:26 p.m. UTC-5 on January 5, 2006 following a flight from White Plains Airport in New York. [20] When the airline ceased operation it employed more than 2,500 staff, [18] many of whom had been with the airline since its inception as Atlantic Coast Airlines.[16] Over its 18 months of operation, Independence carried more than 8 million passengers.[16]

On March 10, 2006, Northwest Airlines bought the operating certificate of Independence Air for $2 million to establish a new regional airline. On March 29, 2006, Northwest Airlines reported that Independence Air would be renamed Compass Airlines. The first flight route would be a twice daily service between Washington Dulles International Airport and Minneapolis-Saint Paul International Airport beginning in early June 2006.[21]

[edit] Destinations

Main article: Independence Air destinations

At the time of its shutdown on January 5, 2006, Independence operated 200 daily departures to 37 destinations throughout the United States,[22] up from 78 flights at its launch.[23]

[edit] Fleet

From the airline's beginning, its flight mix was cited as one of the causes of its financial troubles.[5] Independence Airline's fleet ebbed and flowed in an attempt to stay in business. [24] In February 2005, the airline cancelled the lease on more than 20 Bombardier CRJ200 jets and turbo-prop planes[25]

[edit] References

  1. ^ Fact Sheet re 2/98 Cessation of Ops. Office of Aviation Enforcement and Proceedings (2006-02-21). Retrieved on 2008-02-20.
  2. ^ Matthew French (2004-11-15). Despite Industry woes, Independence Air Sees Strong Market in Charleston. Charleston Regional Business Journal. Retrieved on 2008-02-20.
  3. ^ a b c Joe Sharkey (2006-01-10). Independence Air Ends: No Bang, Some Whimpers. The New York Times. Retrieved on 2008-02-20.
  4. ^ Sara Kehaulani (2004-09-30). Dulles Among Busiest Airports. Washington Post. Retrieved on 2008-02-20.
  5. ^ a b Keith L. Alexander (2006-01-03). Despite Persistent Criticism, Airline Chief Stayed His Course. The Washington Post. Retrieved on 2008-02-20.
  6. ^ a b c Independence Air is Banktupt. Consumer Affairs (2005-11-08). Retrieved on 2008-02-20.
  7. ^ Peter J. Howe (2006-01-03). Independence Air to Shut Down. The Boston Globe. Retrieved on 2008-02-20.
  8. ^ Delta Flight Plan May Include Bankruptcy. consumeraffairs.com (2005-10-25). Retrieved on 2008-02-20.
  9. ^ a b Flyi's Share Price Continues to Fall. The Washington Post (2004-11-11). Retrieved on 2008-02-20.
  10. ^ http://www.bizjournals.com/baltimore/stories/2004/05/17/daily42.html
  11. ^ Jeff Clabaugh (2004-05-21). Independence Air Scores Redskins Sponsorship. Baltimore Business Journal. Retrieved on 2008-02-20.
  12. ^ Sascha Segan (2005-04-22). Swap That Hall Pass for an Air Pass & Flit About the US from $249 All Summer. Frommer's. Retrieved on 2008-02-20.
  13. ^ RDU Welcomes Independence Air. RDU Update. Raleigh-Durham International Airport (2004). Retrieved on 2008-02-20.
  14. ^ Joe Sharkey (2005-08-16). What Flies Coast to Coast and Isn't Very Funny?. The New York Times. Retrieved on 2008-02-20.
  15. ^ Jayne Clark (2005-08-18). I Just Flew in from Cleveland...and, Boy, are My Wings Tired!. USA Today. Retrieved on 2008-02-20.
  16. ^ a b c Bill Brubaker (2006-01-06). Foggy Morning, Misty Eyes Usher Out Independence. The Washington Post. Retrieved on 2008-02-20.
  17. ^ Repo Man Visits Independence Air. consumeraffairs.com (2005-02-13). Retrieved on 2008-02-20.
  18. ^ a b Last Run for Independence Air. msnbc.com (2006-01-05). Retrieved on 2008-02-20.
  19. ^ Bill Brubaker (2005-12-23). United Seeks Piece of Independence Air. The Washington Post. Retrieved on 2008-02-20.
  20. ^ Final Boarding Call for Independence Air. consumeraffairs.com (2006-01-02). Retrieved on 2008-02-20.
  21. ^ Jewel Gopwani (2006-03-30). NWA Plans June Start for Carrier. USA Today. Retrieved on 2008-02-20.
  22. ^ Low-fare Airline to Shut Down Thursday. St. Petersburg Times (2006-01-03). Retrieved on 2008-02-20.
  23. ^ Bill Brubaker (2004-06-17). Independence Air is Off the Ground at Last. The Washington Post. Retrieved on 2008-02-20.
  24. ^ Independence Air Cuts Fleet to Stay Airborne. consumeraffairs.com (2005-02-23). Retrieved on 2008-02-20.
  25. ^ Jeff Clabaugh (2005-02-22). Independence Air Pares Fleet. The Business Review (Albany). Retrieved on 2008-02-20.

[edit] External links