Background

FLYi, previously known as Atlantic Coast Airlines Holdings Inc., is an airline holding company based in Dulles, VA. The parent company of Independence Air, FLYi operated as a regional carrier for major airlines and as an independent operator that offered regularly scheduled low-fare air service to East Coast destinations. 

Due to factors affecting operating losses such as rising fuel prices, increasing competition and declining levels of local business travel, FLYi and seven of its subsidiaries filed for Chapter 11 bankruptcy protection on November 7, 2005 in the District of Delaware. On January 2, 2006 FLYi filed a motion requesting discontinuance of their scheduled flight operations and ceased business operations on January 5, 2006.

Results

KCC worked closely with FLYi and their team of legal professionals at Jones Day and Young, Conaway, Stargatt & Taylor LLP to facilitate and streamline the claims administration process.

KCC’s team played an integral role in data collection and review, examining over 300 operational contracts. The team collaborated to compile the creditor matrix of over 54,000 potential creditors and prepared the Schedules of Assets and Liabilities and Statement of Financial Affairs.

 KCC’s proprietary web-based technology, KCC CaseView, was instrumental in managing solicitation and tabulation procedures and facilitating efficient disbursement of checks to over 80,000 recipients. KCC’s high-volume production facilities were essential to the timely distribution of notices to creditors throughout the duration of the case.

 FLYi’s operating certificate was purchased by Northwest Airlines on March 10, 2006 for approximately $2 million. Operating as Compass Airlines, the newly formed carrier received FAA approval to begin commercial passenger operations on April 5, 2007. Compass Airlines, a wholly-owned subsidiary of Northwest, has bases in Minnesota, Michigan and Tennessee and plans to expand its fleet to 36 aircraft by December 2008.

To learn more about how KCC can help ensure your success, email or call us at 866.381.9100.