FLYi Parachute

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  http://www.atwonline.com/news/story.html?storyID=3633
   
  Most FLYi employees cut loose, one gets golden parachute as airline folds
   
  Monday January 9, 2006 
   
  FLYi, parent of Independence Air, grounded its fleet Jan. 5 following its last flight, an A319 from Tampa that landed at Washington Dulles.Some 2,700 workers were left unemployed by the shutdown. The low-fare carrier, formerly known as Atlantic Coast Airlines, made the decision Jan. 2 to cease operating after failing to gain financial support from outside investors.
   
  Last week, a federal bankruptcy judge approved a $3.2 million bonus plan to retain 171 employees to finalize details of the airline's closure, according to news reports. The judge also approved an $11 million package of bonus and severance pay for union and nonunion FLYi employees.
   
  Last March, Chairman and CEO Kerry Skeen renegotiated his contract, accepting a 15% pay cut in exchange for a deal aimed at salvaging some $3 million in deferred compensation, according to The Washington Post. The funds were invested into a life insurance policy controlled by Skeen, protecting them from the Chapter 11 filing, but the maneuver still could be challenged in court. 


		
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