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Independence Air In Bankruptcy Protection

Cut rate startup airline Independence Air announced today its parent company, FLYi Inc., has filed for Chapter 11 bankruptcy protection. Independence Air joins ATA, Delta, Northwest, and US Airways, who have either declared bankruptcy or are operating under Chapter 11 of the U.S. Bankruptcy Code.

The airline released a statement saying the bankruptcy filing will allow it to "restructure the company`s aircraft leases and other costs to achieve necessary cost savings."

A representative of the airline says passengers will see no disruption of service. FLYi`s stock has slid 89 percent so far this year and is likely to be canceled as a result of the Chapter 11 bankruptcy.