OFFICIAL PRESS RELEASE:

Independence Air To Discontinue Operations

Airline Will Keep Flying Through Thursday Evening, January 5th

Dulles, VA, (January 2, 2006) – FLYi, Inc., (Nasdaq: FLYIQ) parent of low-fare airline Independence Air, announced today that because of the continued financial challenges facing the company, it will voluntarily discontinue all scheduled flights planned to depart after 7:00pm* on the evening of Thursday, January 5th. The company is seeking bankruptcy court approval to automatically refund customers with reservations for flights scheduled to depart beyond that time.

Customers with roundtrip reservations for trips departing before the cessation of operations (including those customers who have already departed) but were scheduled to return afterwards will be contacted by Independence Air and offered the opportunity to change their return reservations to one of the remaining days of operation. All change fees will be waived for changes made by phone. The company is also seeking bankruptcy court approval to automatically refund customers for those return flights that are not rescheduled. No refunds will be offered for free tickets or vouchers.

Customers whose trips are scheduled between now and Thursday evening should expect the same excellent service that Independence Air has become known for.

Independence Air Chairman and CEO Kerry Skeen said, “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.

We offer our sincere thanks to the over eight million customers who have flown with us since the launch of Independence Air, and to the communities across America that we have served.”

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Independence Air To Discontinue Operations

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Skeen continued. “And most importantly, we thank our extraordinary employees for creating an airline brand that has been so universally praised by our customers. Our people have demonstrated that they are capable of operating an airline that quickly rose to the top of the rankings in every major independent survey of airline quality and customer satisfaction. And while this is a profoundly sad day for all of us, we could not be more proud of our employees and everything they have accomplished.”

Customers are urged to visit the airline’s http://www.FLYi.com website if they have further questions as callers to the company’s toll-free number will likely experience long wait times.

Independence Air began service on June 16, 2004 and currently offers over 200 daily departures to 37 destinations.

The company has advised the public, and reiterates, that the likely outcome of the company’s bankruptcy proceeding is the cancellation of the company’s existing common stock without consideration, making FLYi stock of no value.

Independence Air, FLYi, the “i” logo mark and FLYi.com are service marks of Independence Air, Inc. ©Independence Air, Inc. 2006.

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* Flight 1777 from White Plains, NY to Washington Dulles departing at 7:26pm is still expected to operate on Thursday 1/5.

Pwn3d.

B6 is circling above waiting for the FlyI carcass to die.

Too bad for all the employees at Independence, what a crappy way to begin 2006.

Anyways I think their demise will open up new opprotunities for B6 and maybe US/UA. Independence was pretty good for the one flight i took on them HPN-IAD, which happens to be their last flight on the 5th, but their attempt at battling stronger legacy carriers wasn't too great of an idea.

Its a shame, I really liked their service. What happens to all of the planes?

As someone who has worked in and followed this industry for many years an airline can not make so many basic and operationally unwise mistakes at this one has and survive. Having worked for 3 carriers that failed I can appreciate what their employees are going thru but sadly this airline deserves to die. In my tower we speak to their 319 crews every day as we do Ramp Control for Gates A2-4-6 and they use A-4, they are always friendly and professional, even today !

We were wodnerng earlier about what the behavior is of crews that know their airline is about to die in a few days. Nice to hear that they are still being friendly.

Independence Air will be a study one day in poor management. FlyI was one of the most successful and profitable feeder airlines when it was ACA. Its truly amazing that an airline that began with over 500 million in cash on hand more then any other start-up airline in U.S history is now totally broke.

We went to their counter at LGA and asked if we could bid on anything that they were liquidating.

All we were able to walk away with were luggage tags for free.

BTW Phil was that not the smallest airline ticket counter you have ever seen ?

LGA777

It was like a stool.

Air Canada was running their counter, so no Indy people were fired at LGA, I assume.

any idea what is going to happen to thier fleet? anybody want an A319 cheap? perhaps 9K might pick them up...

Indy has updated its ops hotline, interesting to listen to it, give it a try
1-866-465-9309

Listening to the message, I think his care for the employees is genuine, and his points are pretty accurate. A shame, as it WAS a good airline, but they jsut couldn't handle their money. I don't know about the wshole excuse about the airline industry being in the "Perfect Storm" environment.

On Thursday To Morn Independence Air Just Wear A blue Shirt.