Flyi Raises Possibility of Bankruptcy Filing
Financially troubled low-cost carrier Independence Air painted a gloomy picture of its future yesterday, saying it may be forced to file for bankruptcy protection.</br></br>The airline's Dulles-based parent, Flyi Inc., said in its quarterly filing with the Securities and Exchange Commission that it won't be able to pay its bills unless it soon raises "significant funds." "Such matters raise substantial doubt about the Company's ability to continue as a going concern," the filing said. It added that if the situation continues, it will have to file for bankruptcy protection.</br></br>Some Wall Street analysts have been predicting since last fall that Flyi may be forced to file for bankruptcy protection. The airline has raised the possibility, too, but never with the sense of urgency it demonstrated yesterday.</br></br>In a mid-afternoon conference call with Wall Street analysts before the quarterly report was filed, Flyi chief executive Kerry B. Skeen didn't mention bankruptcy. But he raised serious concerns about the company's future and outlined steps to address its liquidity crisis.</br></br>Skeen said his 14-month-old airline plans, for example, to reduce the number of flights it offers by 17 percent this fall, eliminate service to San Jose, Calif., borrow more money, sell off some assets, delay the purchase of future aircraft and ask creditors to forgive or restructure more debt.