Independence Air stops flying

For the past week there have been rumblings that low-fare Independence Air might pack it in. Now, the rumors have become reality.

The Washington Dulles-based discount airline says it will cease operations on Thursday, January 5. All flights scheduled to depart after 7pm that evening are cancelled.

If you have a round-trip reservation for a flight scheduled to depart before operations cease, and were scheduled to return after January 5, Independence Air says they will contact you and give you an opportunity to return before the shutdown of service. All change fees will be waived for changes made by telephone. If that doesn’t fit with your plans, the discount airline is petitioning the bankruptcy court (Independence Air is currently under Chapter 11) to approve automatic refunds for return flights that are not rescheduled.

However, if you’re flying on a free ticket or a voucher, forget it. There will be no refund.

For months Independence Air’s management has been shopping for a suitor, a white knight, to rescue the once-promising carrier. “We remained optimistic that there would be a way to avoid reaching this juncture,” says CEO Kerry Skeen. “To date there has not been a firm offer put forward that meets the financial criteria necessary to continue operations as is.”

This may come as cold comfort to travelers searching for lower fares and more airline alternatives, but industry analysts believe that “capacity” has to be squeezed out of the system before the United States airline industry can return to profitability, and that means that some airlines have to die.

2006’s first casualty is Independence Air.

© Cheapflights Ltd Jerry Chandler

Comments

[MORT GOODKIN]

I have tickets for my wife lois and myself--Newark to DC to West Palm Beach--How do we apply for a refund. Thank you.