Case Study: Self-reliance Air

MBAA 642



Alliages Nyandoro


Dr . Bruce Ellis

A brief history

Independence Air started because Atlantic Coastline Airline (ACA) on 15 December 1989. It operated as a feeder service while United Share for Combined Airlines and Delta Connection for Delta flight 1921. United withdrew from the contract after AQUI labor and management objected to a request for concessions for the lower fee-for-departure agreement. Consequently, ACA reinvented itself as being a low cost transporter known as Self-reliance Air and began businesses on 18 June 2004. Independence Atmosphere was based at Buenos aires Dulles International Airport. In March, 2005 (slightly over six months after inception), one of Freedom Air's aircraft was repossessed after the organization missed a lease payment, after attempting and faltering to restructure the rent. Later that year, three more aeroplanes were marketed or reclaimed. In Nov 2005, FLYi, Inc., their particular parent firm, declared personal bankruptcy, citing rising cost in the airline industry as the key reason why its low priced strategy was failing to succeed. After declining to find a ideal buyer to hold the planes flying, Independence Air halted operations on January a few, 2006. Way Structure

Self-reliance Air selected Washington Dulles International Airport as the hub. They had 36 gates from which they planned pertaining to 8. a few daily departures to much more than 1200 town pairs mainly on the east coast with regional jet connections, with six or more daily round trip connecting opportunities for some pairs. In line with the Airline Organization, 55% in the East Shoreline connecting market segments that Independence would be providing, did not in those days have low-fares service. In their maximum Independence Air flow offered 600 daily routes to 37 destinations including a few West Coast spots. These were after reduced in order to 200 daily flights. During the first 50 % of 2005, Independence Air extended its network to include Las Vegas and Western Coast solutions to Hillcrest, San Francisco, Are usually, San Jose and Detroit, using a fleet of 12 new Airbus A319 jets seating 132 people. The choice of Wa Dulles Airport terminal as the camp provided some significant advantages to Self-reliance Air. IAD is a worldwide gateway which has a great number of legacy air carriers operating intercontinental and intercontinental routes, producing connection visitors. It also offers significant O& D people that makes it well suited for a hub airport. The very fact that IAD did not possess another low fare service was an additional plus intended for Independence Atmosphere. Fleet Type and size

Independence Air flow started off with eighty several 50-seater Canadair CRJ-200 100 series Local jets and later added a dozen 132-seater A319. It is the operation of the 50-seater regional jets that beat conventional perception. According to Jim Parke, an flight analyst to get Raymond David Financial, the regional aircraft have a 30% larger operating cost per offered seat in comparison to bigger aeroplanes used by different LCCs such as the B737 and A320 operated by South west and JetBlue respectively. The consequence of this to get Independence Air flow was that they will required higher load factors to break possibly. In actual fact, according to Self-reliance Air's promoting vice-president Joshua Nording, they required 70% load factors to breakeven. Starting at such an increased note with little brand recognition and formidable competition, such large load elements were guaranteed to prove to be a challenge to achieve. The later advantages of the far more suitable plane (A319) was too little in its final stages.


Independence Air joined service while full grown low-fares airline working regional jets. After its emergence it probably is known for supplying very low airfares: as little as $29 one way to Florida from Wa Dulles International Airport. According to Carrey (2005), Independence Air said that it absolutely was going to undercut existing deals on their 50-city path network by simply 30%-70%. The airline...

References: Bill Brubaker and S i9000. F. (2006, Jan 03). Independence to end flights in Thursday; economically troubled flyi can't get buyer, decides to stop operations. The Washington Post. Retrieved via


Carey, S. (2005, Nov 08). Its wager gone poor, FLYi data files for chapter 11. Wall Street Journal. Retrieved from

http://search proquest. com. ezproxy. libproxy. db. erau/docview/399044256? accountid=27203

Field, D. (2004). Self-reliance day. Aircarrier Business, 20(6), 34-34. Retrieved from http://search. Proquest. com. ezproxy. libproxy. db. erau/docview/204261803? accountid=27203

Field, D

http://search. Proquest. com. ezproxy. libproxy. db. erau/docview/204275766? accountid=27203

Discipline, D (2005)

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Sounder, E (2004, Jul 21)

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