Bankrupt Low Cost Airline Independence Air To Shut Down

Despite Bankruptcy Airline Will Keep Flying Through Thursday Evening, January 5th

Dulles, VA, January 2, 2006, FLYi, Inc., (Nasdaq: FLYIQ) parent of low-fare airline Independence Air (IA), announced today that because of the continued financial challenges facing the company, it will voluntarily discontinue all scheduled flights planned to depart after 7:00pm on the evening of Thursday, January 5th.

Flight 1777 from White Plains, NY to Washington Dulles departing at 7:26pm is still expected to operate on Thursday 1/5.

The company is seeking bankruptcy court approval to automatically refund customers with reservations for flights scheduled to depart beyond that time.

Customers with roundtrip reservations for trips departing before the cessation of operations (including those customers who have already departed) but were scheduled to return afterwards will be contacted by Independence Air and offered the opportunity to change their return reservations to one of the remaining days of operation. All change fees will be waived for changes made by phone. The company is also seeking bankruptcy court approval to automatically refund customers for those return flights that are not rescheduled. No refunds will be offered for free tickets or vouchers.

Customers whose trips are scheduled between now and Thursday evening should expect the same excellent service that Independence Air has become known for.

Independence Air Chairman and CEO Kerry Skeen said,