Officials at Independence Air scrambled over the holiday weekend and into the New Year, fielding calls from concerned travelers who were startled to find that the struggling carrier's long rumored bankruptcy was imminent.
"While we’ve been clear in reminding everyone that this was a possibility, we remained optimistic that there would be a way to avoid reaching this juncture. To date there has not been a firm offer put forward that meets the financial criteria necessary to continue operations as is. Therefore, we are voluntarily discontinuing scheduled service as of Thursday evening," said Indpendence Air Chairman Kerry Skeen.
The company is frantically trying to rebook travelers, either to come home earlier or on other carriers. According to a 2002 "guidance" statement issued by the Department of Transpation, "passengers holding valid paper or electronic tickets from insolvent or bankrupt carriers for a particular route are entitled at minimum to transportation on a space-available basis on any airline currently serving that route. Airlines may recover costs of providing the transportation such as the direct cost of rewriting a ticket and meal costs."
Independence, which was formed from what was once known as Atlantic Coast Airways, had been a United regional partner in its former incarnation. In past years (and event past weeks), the airline has spurned offers from United and Mesa Airlines among others to be acquired. Industry experts anticipate that most of the airline will be liquidated although some portion of the airline may exist in bankruptcy protection with minimal assets and eventually become a minor regional carrier again?
The bad news for consumers: Areas heavily served by Independence, especially at its home hub of Washington Dulles (IAD) , will likely suffer price increases due to the reduced competition.
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