Independence Air in Dire Straits

Aviation International News » September 2005
October 2, 2006, 11:19 AM

Discount-fare Bombardier CRJ operator Independence Air raised “substantial doubt about the company’s ability to continue as a going concern” in last month’s quarterly filing with the SEC. The filing said the company cannot secure any more lines of credit and has pledged all its assets as collateral to secure its outstanding debt and other obligations.

Days after issuing its gloomy outlook, Independence struck a deal with Airbus to defer delivery on six more Airbus A319s and recoup $31.2 million in deposits. It also deferred $11.5 million in payments due through this year and a “significant amount” of payments due next year.

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