Ughhh! Independence Air

[Tina]

News reports say Independence Air my file Chapter 7 today. That's 7, not 11. We bought our tix for our November trip on them. I wonder if we can get our money back from Visa if it happens.

 

[stage manager]

You SHOULD be okay since you purchased on a VISA. They will cover you as they have a huge amount of cash the airlines must post to cover them in exactly this case.

 

[CarolA]

OH! That is not good!

But are you sure? I have done about three internet searchs and can't find anything on any of the major news sources. Seems like someone would pick this one up.

ETA: I found something on the Detroit News... they say it could go either way...

Independence Air, the scrappy low-fare upstart that challenged Northwest in Detroit and Lansing, is expected to be the next airline to fly into bankruptcy -- perhaps as early as today, several analysts predicted Monday.

The Virginia-based airline, which launched 16 months ago with one-way fares as low as $29, is expected to file for Chapter 11 and try to reorganize, or liquidate under Chapter 7, analysts said.

A bankruptcy filing by Independence Air would show that even low-cost airlines -- especially those without solid cash reserves -- are struggling to survive the crisis buffeting the U.S. airline industry.

 

[Lewisc]

http://www.detnews.com/2005/business/0509/20/A01-320682.htm

posted before Carol edited her post.

 

[stage manager]

Ben Mutzabaugh's column in USA Today (eye in the sky) discusses it today. Even he says he doesn't know if they will go Chapter 11 or 7.

 

[soccerchick]

I just finished getting my back-up plans in place. We are supposed to FlyI to WDW next week! I have copies of our CC statements and customer service phone #, itineraries and the United info to book if needed in a nice little packet. DH has explicit instructions about what to do should they announce Chapter 7.

What's a little more stress at this point. UGH!!