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Investor to FlyI: I Liked You Just the Way You Were

Independence Air’s largest investor said that he would like the lowfare airline to return to its routes as a regional carrier, shuttling passengers to hub airports.

"You no longer
have the luxury of blindly pursuing a strategy that will clearly
require more financial resources than you have at your disposal," PAR
partner Edward Shapiro wrote to FLYi Chairman Kerry Skeen on Nov. 15.

In other words, "stop wasting our money."  Remember that Independence Air had a pretty good life as Atlantic Coast Airways, flying passengers on behalf of United Airlines.  United then asked for a reduction in the rates it paid ACA, which ACA decided was so unreasonable a demand that it would cease flying for United and reinvent itself as a low-cost carrier.  That hasn’t worked so well, with the airline only filling about 50% of its seats in October.

I don’t expect Fly-I to thrown in the towel and say "no harm no foul" and return to its regional carrier routes.  But it’s not a terrible idea.

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