Independence Air was a
low-cost airline
A low-cost carrier or low-cost airline (occasionally referred to as '' no-frills'', ''budget'' or '' discount carrier'' or ''airline'', and abbreviated as ''LCC'') is an airline that is operated with an especially high emphasis on minimizing op ...
, owned by
FLYi, Inc., headquartered in the Loudoun Gateway Corporate Center in
Dulles, Virginia
Dulles () is an unincorporated area in Loudoun County, Virginia, United States, and is part of the Washington metropolitan area. The headquarters of Northrop Grumman Innovation Systems and ODIN Technologies, as well as the former headquarters of ...
, United States (near
Washington, D.C.
)
, image_skyline =
, image_caption = Clockwise from top left: the Washington Monument and Lincoln Memorial on the National Mall, United States Capitol, Logan Circle, Jefferson Memorial, White House, Adams Morgan, ...
) 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
Washington Dulles International Airport , typically referred to as Dulles International Airport, Dulles Airport, Washington Dulles, or simply Dulles ( ), is an international airport in the Mid-Atlantic (United States), Eastern United States, loc ...
.
It ceased all operations at 8:24 p.m.
UTC-5 on January 5, 2006. The airline had been in
Chapter 11 bankruptcy
Chapter 11 of the United States Bankruptcy Code (Title 11 of the United States Code) permits reorganization under the bankruptcy laws of the United States. Such reorganization, known as Chapter 11 bankruptcy, is available to every business, whe ...
since November 7, 2005.
There had been discussion of a last-minute deal that could save the airline, but that did not happen.
History
![Independence Air CRJ-Dulles](https://upload.wikimedia.org/wikipedia/commons/8/8e/Independence_Air_CRJ-Dulles.JPG)
Independence Air started life as
Atlantic Coast Airlines
Atlantic Coast Airlines (ACA) was an airline based in the United States owned by Atlantic Coast Holdings, Inc. It operated as United Express for United Airlines and Delta Connection for Delta Air Lines. It was headquartered in the Dulles area o ...
on December 15, 1989, operating feeder services as
United Express
United Express is the brand name for the regional branch of United Airlines, under which six individually owned regional airlines operate short- and medium-haul feeder flights.
On October 1, 2010, UAL Corporation and Continental Airlines merged t ...
for
United Airlines
United Airlines, Inc. (commonly referred to as United), is a major American airline headquartered at the Willis Tower in Chicago, Illinois. and
Delta Connection
Delta Connection is a regional airline brand name for Delta Air Lines, under which a number of individually owned regional airlines primarily operate short- and medium-haul routes. Mainline major air carriers often use regional airlines to ope ...
for
Delta Air Lines
Delta Air Lines, Inc., typically referred to as Delta, is one of the major airlines of the United States and a legacy carrier. One of the List of airlines by foundation date, world's oldest airlines in operation, Delta is headquartered in Atla ...
.
After United withdrew the contract when the ACA labor and management would not agree to the concessions it requested, Atlantic Coast reinvented itself as low-cost carrier Independence Air.
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 jet
A regional jet (RJ) is a jet-powered regional airliner with fewer than 100 seats. The first one was the Sud-Aviation Caravelle in 1959, followed by the widespread Yakovlev Yak-40, Fokker F-28, and BAe 146. The 1990s saw the emergence of th ...
s, although the airline later introduced larger
Airbus A319
The Airbus A319 is a member of the Airbus A320 family of short- to medium-range, Narrow-body aircraft, narrow-body, commercial passenger Twinjet, twin-engine jet airliners manufactured by Airbus. The A319 carries 124 to 156 passengers and has a ...
equipment. It was based at Washington Dulles International Airport (IAD) and contributed to Dulles' substantial increase in passenger use, bringing one million new customers to the airport in its first three months of operation.
The airline was also credited with helping to reduce fares to and from the airport, and it took time after the airline's shutdown for the traffic volume to recover.
Criticism
From the beginning, the airline faced criticism including that it expanded too quickly, had a poor fleet mix
and did not have the resources to compete with the
legacy airline
A legacy carrier, in the United States, is an airline that had established interstate routes before the beginning of the route liberalization permitted by the Airline Deregulation Act of 1978 and so was directly affected by that Act. Legacy carr ...
s, who despite their own financial troubles, would match the fares offered by Independence.
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.
Atlantic Coast's / Independence Air's former partner at Dulles,
United Airlines
United Airlines, Inc. (commonly referred to as United), is a major American airline headquartered at the Willis Tower in Chicago, Illinois. , responded vigorously to Independence Air's emergence as a stand-alone carrier by leveraging Washington area passenger loyalty to the United
Mileage Plus
MileagePlus is the loyalty program of United Airlines and Aeromar that offers rewards to passengers traveling on certain types of tickets. Following the 2011 merger agreement between United Airlines and Continental Airlines, United Mileage Plus ...
frequent flyer program. United offered its Mileage Plus members substantial bonuses, including free trips around the world on United and other
Star Alliance
Star Alliance is the world's largest global airline alliance. Founded on 14 May 1997, its CEO is Jeffrey Goh and its headquarters is located in Frankfurt am Main, Germany. , Star Alliance is the largest of the three global alliances by passenger ...
carriers; these proved effective in maintaining United's grip on the lucrative business travel market, and Independence Air was unable to respond to United's promotional onslaught. (United's primary offer for free flights based on a sliding scale of flight segments to/from a Washington airport - IAD, DCA, BWI. 24 segments yielded a United coach ticket, 48 segments yielded a Star Alliance round-the-world business class ticket.) Problems, including flights flying far below capacity, were identified in October 2004,
less than six months following the airline's launch as the parent company attempted to avoid bankruptcy.
Promotional activities
On May 20, 2004, even prior to its inaugural flight, Independence Air signed a deal with the
Washington Redskins
The Washington Commanders are a professional American football team based in the Washington metropolitan area. The Commanders compete in the National Football League (NFL) as a member club of the league's National Football Conference (NFC) N ...
to become the official airline sponsor of the team for three years.
In the summer of 2005, the airline offered the GLiDE Summer Travel Pass for college students.
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.
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
Chester James Carville Jr. (born October 25, 1944) is an American political consultant, author, and occasional actor who has strategized for candidates for public office in the United States and in at least 23 nations abroad. A Democrat, he is an ...
and
Mary Matalin
Mary Joe Matalin (born August 19, 1953) is an American political consultant well known for her work with the Republican Party. She has served under President Ronald Reagan, was campaign director for George H. W. Bush, was an assistant to Presid ...
.
They also attracted attention from their partnership with the
Laugh Factory
Laugh Factory is a chain of comedy clubs in the United States. The chain is owned by Laugh Factory Inc., and the founder and current chief executive is Jamie Masada.
Endurance record
The Laugh Factory keeps track of an endurance record fo ...
and the use of former
baggage handler
In the airline industry, a baggage handler is a person who loads and unloads baggage (suitcases or luggage), and other cargo (airfreight, mail, counter-to-counter packages) for transport via aircraft. With most airlines, the formal job title i ...
Dave George as "the Flyi Guy" — the airline's resident comedian.
Corporate affairs
Headquarters
Independence Air had its headquarters in Loudoun Gateway III in the Loudoun Gateway Corporate Center in
Dulles,
unincorporated Unincorporated may refer to:
* Unincorporated area, land not governed by a local municipality
* Unincorporated entity, a type of organization
* Unincorporated territories of the United States, territories under U.S. jurisdiction, to which Congress ...
Loudoun County
Loudoun County () is in the northern part of the Commonwealth of Virginia in the United States. In 2020, the census returned a population of 420,959, making it Virginia's third-most populous county. Loudoun County's seat is Leesburg. Loudoun C ...
,
Virginia
Virginia, officially the Commonwealth of Virginia, is a state in the Mid-Atlantic and Southeastern regions of the United States, between the Atlantic Coast and the Appalachian Mountains. The geography and climate of the Commonwealth ar ...
.
[Loudoun Gateway III]
." The Alter Group. Retrieved on January 31, 2011. "Loudoun Gateway III 45200 Business Court Loudoun Gateway Corporate Center Dulles, VA." The facility is located at the intersection of
Virginia Route 28
State Route 28 (SR 28) in the U.S. state of Virginia is a primary state highway that traverses the counties of Loudoun, Fairfax, Prince William, and Fauquier in the U.S. state of Virginia. The route serves as a major artery in the Northern Vir ...
and
Virginia Route 606
State Route 606 (SR 606) in the U.S. state of Virginia is a secondary route designation applied to multiple discontinuous road segments among the many counties. The list below describes the sections in each county that are designated SR 606.
Lis ...
, north of the
Dulles Toll Road
State Route 267 (SR 267) is a primary state highway in the US state of Virginia. It consists of two end-to-end toll roads – the Dulles Toll Road and Dulles Greenway – as well as the non-tolled Dulles Access Road, which lies in the ...
and near
Washington Dulles International Airport
Washington Dulles International Airport , typically referred to as Dulles International Airport, Dulles Airport, Washington Dulles, or simply Dulles ( ), is an international airport in the Mid-Atlantic (United States), Eastern United States, loc ...
. The three-story, building has an about 25,000 RSF floor plate. The entire Loudoun Gateway Corporate Center has about of space.
Grubb & Ellis
Newmark Group Inc. is a commercial real estate advisory and services firm headquartered in New York City. It operates as ''Newmark'', and is listed on the NASDAQ Global Select Market under the symbol "NMRK".
The company’s services include Capi ...
had originally leased of the building to
Atlantic Coast Airlines
Atlantic Coast Airlines (ACA) was an airline based in the United States owned by Atlantic Coast Holdings, Inc. It operated as United Express for United Airlines and Delta Connection for Delta Air Lines. It was headquartered in the Dulles area o ...
.
Fleet
![Independence Air Airbus A319 Unterspann](https://upload.wikimedia.org/wikipedia/commons/2/26/Independence_Air_Airbus_A319_Unterspann.jpg)
From the airline's beginning, its fleet mix was cited as one of the causes of its financial troubles.
Independence Air's fleet ebbed and flowed in an attempt to stay in business.
In February 2005, the airline canceled the lease on more than 20
Bombardier CRJ200
The Bombardier CRJ100 and CRJ200 (previously Canadair CRJ100 and CRJ200) is a regional jet designed and manufactured by Bombardier Aerospace between 1991 and 2006, the first of the Bombardier CRJ family.
The ''Canadair Regional Jet'' (CRJ) pro ...
jets and
British Aerospace Jetstream 41
The British Aerospace Jetstream 41 is a turboprop-powered feederliner and regional airliner, designed by British Aerospace as a stretched version of the popular Jetstream 31. Intended to compete directly with 30-seat aircraft like the Embraer ...
turbo-prop planes.
At the time of its last flight, Independence had 42 planes, down from a peak of 87.
Historical fleet
Independence Air previously operated the following aircraft:
* 12
Airbus A319
The Airbus A319 is a member of the Airbus A320 family of short- to medium-range, Narrow-body aircraft, narrow-body, commercial passenger Twinjet, twin-engine jet airliners manufactured by Airbus. The A319 carries 124 to 156 passengers and has a ...
* 87
Bombardier CRJ200
The Bombardier CRJ100 and CRJ200 (previously Canadair CRJ100 and CRJ200) is a regional jet designed and manufactured by Bombardier Aerospace between 1991 and 2006, the first of the Bombardier CRJ family.
The ''Canadair Regional Jet'' (CRJ) pro ...
* 31
Dornier 328
The Dornier 328 is a turboprop-powered commuter airliner. Initially produced by Dornier Luftfahrt GmbH, the firm was acquired in 1996 by Fairchild Aircraft. The resulting firm, named Fairchild-Dornier, manufactured the 328 family in Oberpfaffe ...
Decline
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
Florida is a state located in the Southeastern region of the United States. Florida is bordered to the west by the Gulf of Mexico, to the northwest by Alabama, to the north by Georgia, to the east by the Bahamas and Atlantic Ocean, and to ...
from Washington Dulles International Airport.
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,
after trying and failing to restructure the lease.
Later that year, three more aircraft were sold or repossessed and in November 2005, FLYi, Inc., their parent company, declared bankruptcy.
The company cited rising costs in the airline industry as the reason its low-cost strategy did not succeed.
In the intervening months between FLY I's declaration of bankruptcy and Independence Air's cessation of operations, a number of airlines expressed an interest in acquiring the airline's assets including:
Mesa Air Group
Mesa Air Group, Inc. is a Nevada Corporation commercial aviation holding company with headquarters in Suite 700 at 410 North 44th Street in the Camelback East area of Phoenix, Arizona, Phoenix, Arizona, United States. The company operates one re ...
,
United Airlines
United Airlines, Inc. (commonly referred to as United), is a major American airline headquartered at the Willis Tower in Chicago, Illinois. and Richard Branson.
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
Westchester County Airport
Westchester County Airport is a county-owned airport in Westchester County, New York, three miles (6 km) northeast of downtown White Plains, with territory in the towns of North Castle and Harrison, New York, and village of Rye Brook, New ...
in
New York
New York most commonly refers to:
* New York City, the most populous city in the United States, located in the state of New York
* New York (state), a state in the northeastern United States
New York may also refer to:
Film and television
* '' ...
.
When the airline ceased operations, it employed more than 2,500 staff,
many of whom had been with the airline since its inception as Atlantic Coast Airlines.
Over its 18 months of operation, Independence carried more than 8 million passengers.
On March 10, 2006,
Northwest Airlines
Northwest Airlines Corp. (NWA) was a major American airline founded in 1926 and absorbed into Delta Air Lines, Inc. by a merger. The merger, approved on October 29, 2008, made Delta the largest airline in the world until the American Airlines ...
bought the operating certificate of Independence Air for $2 million to establish a new regional airline. On March 29, 2006, Northwest reported that Independence Air would be renamed
Compass Airlines. The first flight route would be a twice daily service between
Washington Dulles International Airport
Washington Dulles International Airport , typically referred to as Dulles International Airport, Dulles Airport, Washington Dulles, or simply Dulles ( ), is an international airport in the Mid-Atlantic (United States), Eastern United States, loc ...
and
Minneapolis-Saint Paul International Airport beginning in early June 2006.
Destinations
At the time of its shutdown on January 5, 2006, Independence operated 200 daily departures to 37 destinations throughout the United States,
up from 78 flights at its launch.
See also
*
List of defunct airlines of the United States
A ''list'' is any set of items in a row. List or lists may also refer to:
People
* List (surname)
Organizations
* List College, an undergraduate division of the Jewish Theological Seminary of America
* SC Germania List, German rugby union ...
References
External links
*
{{Airlines of the United States
Airlines established in 1989
Airlines disestablished in 2006
Companies based in Dulles, Virginia
Defunct airlines of the United States
Defunct companies based in Virginia
Defunct low-cost airlines
Companies that filed for Chapter 11 bankruptcy in 2005