Press Release
Skybus Airlines to discontinue operations, file for bankruptcy
Skybus Airlines will discontinue operations effective Saturday, April 5, and will file for bankruptcy protection under Chapter 11 on Monday, April 7.
All Skybus flights will be completed on Friday. Beginning Saturday morning, all future Skybus flights are cancelled.
Passengers holding reservations on Skybus flights are advised to contact their credit card companies for information on how to obtain refunds for purchased Skybus tickets. More information for customers and others will be provided on the Skybus web site following the formal bankruptcy filing.
“We deeply regret this decision, and the impact this will have on our employees and their families, our customers, our vendors and other partners, and the communities in which we have been operating,” said Michael Hodge, Skybus CEO. “Skybus struggled to overcome the combination of rising jet fuel costs and a slowing economic environment. These two issues proved to be insurmountable for a new carrier.”
Dammit. I had tickets to Chattanooga next weekend. I guess it could be worse, and they could have folded next weekend leaving me stranded and pissed off in Chattanooga.
If you’re reading this and trying to find a way home, it looks like JetBlue is trying to help people get to airports near former Skybus airports. Of course, that doesn’t help Columbusites, since JetBlue doesn’t fly to Columbus. Supposedly, US Air is honoring Skybus tickets with a $50 surcharge.
There go those $10 trips to NY and Richmond.
Ah well…thanks for the memories Skybus! I wouldn’t have gone to San Diego or San Francisco without you!
Fare thee well Skybus, it’s a shame Mr. Diffenderffer couldn’t use some of his samurai skills to take Skybus to the nirvana that the business world calls profitability. I did enjoy flying to LA for 40 bucks, too bad those days are over. Thanks for the memories!
Pardon me…I am really not up on high finance matters, especially when it comes to starting an airline, but…
It seems to me that the people involved had a very poor business plan, which was compounded by ever higher fuel costs. The $10 tickets were a gimmick and like most gimmicks, stopped working after a time. Starting a new airline is very difficult under the best of circumstances, but this was an impossible idea.
The problem was that in the hysteria surrounding the start of this airline (Oooooh…look at all that economic development and all those jobs!), city leaders allowed themselves to get swept up in the moment plowed in millions in aid.
Officials jumped at the chance to throw money at Skybus, despite the industry’s checkered past when it comes to new startups. The landscape is littered with the carcasses of new airlines that crashed on takeoff.
My question is this: If the city and others can drop a dime for such a dubious venture, can’t they do the same for rail?
Take a look at the $600 million in economic activity and 1,000 jobs which were promised within three years. How would that compare to even a base four roundtrip 3-C Corridor service?
So, for a fair comparison, let’s look at the economic activity and jobs which Skybus did create in 2007-8 and compare that to the base 3-C service. How would that compare? I don’t have those figures, but I’d bet there wouldn’t be much difference.
Now let’s look at the 3-C at full Ohio Hub buildout with ten daily round trips at 110 mph and compare that activity with the three year projection for Skybus.
Add to that the intangible benefits of having a new mode of transportation bringing all those economic benefits and jobs where it’s needed most: Right in downtown Columbus.
Maybe our officials should pay closer attention to the big picture and not allow themselves to get swept up in the hoopla over the start of a new airline in a difficult industry.
How much did the city pitch in again? I can’t remember where i saw that…
I’m not sure if they pitched in anything at all. I was at the City Council meeting on Monday and they said that they set aside a certain amount of money, but none of it was actually handed over to Skybus as of yet.
I think there was very little cash given to Skybus. Aside from the airport expansion, and some waiving of airport fees, I don’t think we sacrificed a whole bunch of money.