Breaking News: Skybus Airlines is ceasing all operations as of April 5, 2008. This is the fourth U.S.-based air carrier to shut down this week!
Skybus wasn't with us very long. The low-cost carrier, based in Columbus, OH, began flying in May of 2007 -- less than a year ago.
An announcement on the Skybus website says:
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.Boom! Another one gone. The 450 Skybus employees -- pilots, flight attendants and ground staff -- are suddenly out of work, with virtually no notice.
We deeply regret the impact this decision will have on our employees and their families, customers, vendors, suppliers, airport officials and others in the cities in which we have operated. Our financial condition is such that our Board of Directors felt it had no choice but to cease operations.
One could say that there were clues that hinted at a coming Skybus bust. In an effort to reduce operating costs, the airline recently had discontinued some routes and had cut the number of flights on remaining routes. Earlier, Skybus had raised fees for checked bags, and for priority boarding by passengers.
Meanwhile, Skybus pilots had been in the process of unionizing. Less than a month ago, it had been reported that more than 80 percent of Skybus pilots were in favor of voting to join the International Brotherhood of Teamsters (IBT).
Then less than two weeks ago, on March 24, Skybus CEO Bill Diffenderffer abruptly resigned from the company. He was replaced by Skybus chief financial officer, Mike Hodge. During the past week, another Skybus executive, Bud Sittig, left as well. Mr. Sittig had been vice president of operations for Skybus. When he left, no replacement was named.
Skybus is expected to file for bankruptcy on Monday, April 7, 2008.
3 comments:
That will teach me to try to save money by flying a budget airline. I am sitting her in North Carolina after scrambling to book a flight -- for a lot more money -- so I can get home today. I flew Skybus into Greensboro on Wednesday.
I figured with new planes, Skybus was a safer bet than the major carriers with all their maintenance problems.
But I'm just out a couple hundred bucks; the people I feel really badly for are the employees. The attendants on their trip down did a fine job, even as they must have sensed that their jobs were held together with spit and glue, even if the aircraft on which they worked was in good shape. I at least get to go back to work on Monday.
I wrote about my experience on Skybus here. It's a shame...and like most companies that go bust, the employees are the ones who suffer.
This is unfortunate, especially with four small airlines going out of business within such a short period of time.
I had thought that Skybus found their niche, but a drop in passenger numbers in January and February hastened the air carrier's demise.
Silverjet recently received new funding but they are a concern and there are some other smaller air carriers that are also vulnerable.
If fuel prices continue to rise, then the entire industry could be shaken to its core.
Unfortunately we do not know what is going on in the future, sometimes we have a good business and suddenly it is collapsed caused by something unexpected, we have to realized that this risk of life we have to face it.
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