Independence Air near bankruptcy

Independence Air announced that it is preparing for a possible Chapter 11 bankruptcy filing.

Having been in operation for only fourteen, discount airline Independence Air said in a securities filing Tuesday that it is preparing for a possible Chapter 11 bankruptcy filing.

Embroiled in the air fare wars and high fuel prices, Independence Air loss $98 million loss in their second quarter.  This is three times more than its $27 million loss a year ago.

While Independence’s cash reserves fell 61% in the first half of this year to a dangerously low $65 million, company officials are not optimistic it can borrow cash.

Cost cutting measures include cutting its schedule 15% in September, to 342 daily flights.