By UPI

Dec 30, 2005, 19:00 GMT

WASHINGTON, DC, United States (UPI) -- The Virginia-based owner of Independence Air will end all flights Jan. 7 unless it can find a fresh infusion of money, and lots of it.

Bankrupt Flyi Inc. sent letters to its unionized pilots, mechanics and flight attendants saying that without `significant external investment,` it would stop flying in nine days and lay off workers at all of its locations from Jan. 7-21, The Washington Post reported.

The letters arrived in employees` mailboxes this week and mark a low for the 16-year-old company, which employs 2,800 people, as it tries to find a buyer or investor.

Flyi was known as Atlantic Coast Airlines Holding Co., a feeder for United Airlines, from 1989 to 2004. In June of that year Flyi turned itself into a discount carrier and last month it filed for bankruptcy.

Potential buyers reportedly include UAL Corp., parent of United, and Mesa Air Group Inc., a Phoenix-based regional carrier that tried to buy Flyi two years ago.

Copyright 2005 by United Press International