Flight International online news 13:40GMT: Struggling US budget airline Independence Air’s parent, Flyi, has filed for Chapter 11 bankruptcy protection along with its subsidiaries, including the low-fare carrier.

It is also to request court approval to conduct an auction process to seek external investors in order to continue operations.

In a statement, Washington-based, Flyi says that it has voluntarily made the Chapter 11 filing in order to restructure the company’s aircraft leases and other obligations, and achieve necessary cost savings.

Flyi chairman and chief executive Kerry Skeen says: “After careful consideration we have concluded that a court-supervised restructuring will allow us to complete our cost-savings initiatives while seeking outside investors or purchasers, and represents the best solution for Independence Air, our customers, employees, creditors and the communities we serve.”

Independence Air began services in June last year after emerging from its previous operation as Atlantic Coast Airlines.

Source: Flight International