The story
Independence Air started life as Atlantic Coast Airlines on December 15, 1989, operating feeder services as United Express for United Airlines and Delta Connection for Delta Air Lines. United, in Chapter 11 bankruptcy, withdrew the contract when the ACA labor and management would not agree to the concessions it requested, Atlantic Coast reinvented itself as low-cost carrier Independence Air. It was announced on November 19, 2003, and operations as Independence Air began on June 16, 2004. At its inception, it was unique among low-cost carriers in that its fleet mainly consisted of 50-seat regional jets, although the airline later introduced larger Airbus A319 equipment. It was based at Washington Dulles International Airport (IAD) and contributed to Dulles' substantial increase in passenger use, bringing one million new customers to the airport in its first three months of operation. The airline was also credited with helping to reduce fares to and from the airport, and it took time after the airline's shutdown for the traffic volume to recover.
Criticism
From the beginning, the airline faced criticism including that it expanded too quickly, had a poor fleet mix and did not have the resources to compete with the legacy airlines, who despite their own financial troubles, would match the fares offered by Independence. Further, industry experts believed that the reasons behind the airline's failure were not problems with the low-cost strategy, but miscues on the part of airline management. Atlantic Coast's / Independence Air's former partner at Dulles, United Airlines, responded vigorously to Independence Air's emergence as a stand-alone carrier by leveraging Washington area passenger loyalty to the United Mileage Plus frequent flyer program. United offered its Mileage Plus members substantial bonuses, including free trips around the world on United and other Star Alliance carriers; these proved effective in maintaining United's grip on the lucrative business travel market, and Independence Air could not respond to United's promotional onslaught. (United's primary offer for free flights based on a sliding scale of flight segments to/from a Washington airport - IAD, DCA, BWI. 24 segments yielded a United coach ticket, 48 segments yielded a Star Alliance round-the-world business class ticket.) Problems, including flights flying far below capacity, were identified in October 2004, less than six months following the airline's launch as the parent company attempted to avoid bankruptcy.
Promotional activities
On May 20, 2004, even prior to its inaugural flight, Independence Air signed a deal with the Washington Redskins to become the official airline sponsor of the team for three years. In the summer of 2005, the airline offered college students the GLiDE Summer Travel Pass. This move was meant not to bring in revenue, but to try to fill seats that otherwise would have flown empty. This promotional tool was not enough to prevent trouble, due in part to the airline losing almost $150 million in its two years of operation.
Independence Air became quickly known for the humorous touches it added to the flying experience, such as replacing the flight attendant safety announcements with prerecorded versions of the warnings by celebrities such as James Carville and Mary Matalin. They also attracted attention from their partnership with the Laugh Factory and the use of former baggage handler Dave George as "the Flyi Guy" — the airline's resident comedian.
From Wikipedia’s article on Independence Air, shared under CC BY-SA 4.0.4
