Air fares to head skywards after Independence Air's exit

Air fares to head skywards after Independence Air's exit

It was not totally unexpected and yet it was not expected either. However, the end result could end up costing the common man a lot more. With Independence Air shutting down by Thursday, analysts believe that airfares of more than 30 routes in the country could double or even triple.

Tom Parsons, airlines consumer expert and CEO of Bestfares.com says, "We're going to learn the true meaning of 'sky high. People who live in places like Charleston, W.Va., are going to wish they had supported Independence Air."

Independence air made the announcement on Monday, just in time to give enough time to it's passengers to get refunds or to make alternate arrangements before the airline flies it's last plane on Thursday night. Independence Air has said that those holding tickets of flights post-Thursday would be eligible for refunds from them.

Shutting down of Independence Air is bad news for passengers of many destinations where the airlines flew, mostly up and down the Eastern Coast. Prices of tickets on these routes are expected to see dramatic increase.

Cheapseats.com's Terry Trippler says, "Fares will go up — and quickly."

Independence Air's struggle for survival had seen the fledging airline offering fares well below its incurred cost, some as low as $29 one way. In order to stay in contention and put pressure on Independence, rivals such as United Airlines, Delta Air Lines and US Airways had had to match the prices of fares offered by Independence. After Independence Air closes down on Thursday, these rivals won't have to do that anymore resulting in steep prices.

The decision by Independence at the holiday season has caught a lot of passengers by surprise and is expected to disrupt vacation plans of a lot of people. In Novermber the airline reported to have carried almost 300,000 passengers.

The airline which will have the direct benefits from this, is United, which had direct competion with the bankrupt airline at Dulles, which is United's major hub airports. Incidentally before 2004, both United and Independence were business partners.