Fares Could Double (Or More) With Independence Air Loss

The imminent dissolution of Independence Air, in the short term, is already being felt by customers who had booked advanced tickets through April with the airline. And it's likely to get worse.

Without Independence holding the bottom line in price, according to Bestfares.com CEO Tom Parson, airlines that once had to match the LCC's fares (some as low as $29 one way) in the 30 cities Independence once served now don't have to worry about it -- and that will drive prices up.

"We're going to learn the true meaning of 'sky high,' said Parsons to USA Today. "People who live in places like Charleston, WV, are going to wish they had supported Independence Air."

While Independence's announcement Monday should have given most passengers time to get refunds (from their credit card companies; Independence will go to a bankruptcy court judge soon for permission to offer refunds directly) -- or make other plans -- that's only a short-term fix. Prices will go up -- and may go up a lot.

People accustomed to flying to some destinations for as low as $29 one way on such carriers as United, Delta and US Airways -- who had to match Independence's artificially low fares to retain business -- will now be able to charge as much as three times more that amount for the same routes.

"Fares will go up -- and quickly," said consumer expert Terry Trippler of Cheapseats.com.

Several airlines, including Spirit Airlines, have stepped in with "promotional" offers to displaced Independence ticketholders -- offering them seats without charging for a new ticket, as per federal law, but for standby travel only and not including a $50 rebooking fee.

United, in particular, should benefit from the demise of the upstart carrier. It was the parting of ways of the former Atlantic Coast Airlines and United in 2004 that led to the formation of Flyi -- and Independence. Since June of 2004, United had to compete with an airline that had once been a contract carrier for them.

For November 2004, the last month Independence reported its traffic, the airline carried nearly 300,000 passengers.

FMI: www.flyi.com