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Airline’s New Stop: the Courthouse

The parent company of a low-fare startup airline that served Lindbergh Field for about five months this year Independence Air announced Nov. 7 that it filed for Chapter 11 bankruptcy.

The bankruptcy filing, according to a statement released by the Dulles, Va.-based airline, will allow it to “restructure the company’s aircraft leases and other costs to achieve necessary cost savings.”

Independence Air began daily, nonstop, round-trip service from Lindbergh Field to Washington Dulles International Airport in mid-April and discontinued the route at the end of October.

The company said it would conduct a court-supervised auction to attract investors or purchasers. It also announced it would continue current flights and honor reservations and tickets. Immediate pay cuts for nonunion employees and officers were also announced.

Independence Air, formerly known as Atlantic Coast Airlines, flew regional routes for United Airlines and Delta Air Lines Inc., but shifted its business model in 2003 after United’s bankruptcy.

Shares of the parent company, known as FLYi Inc., are traded on Nasdaq under the symbol FLYI.

, Connie Lewis

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