I guess this means we're driving back and forth from Richmond. The next question is does anyone fill the gap . . . Delta coming back? Southwest? . . .

 

These oil prices are just crushing the airlines.

THANK GOD the last day of flights is today and not tomorrow or Sunday.  Was in the middle of packing my bags for my flight to Chicopee, MA tomorrow morning.

 

Oh well...glad I could take advantage of some cheap flights while I could.  Obviously my heart goes out to all those that lost their jobs.

More details from the Columbus Dispatch:

 

Skybus shuts down, cancels all flights

Friday,  April 4, 2008 11:11 PM

By Marla Matzer Rose

 

THE COLUMBUS DISPATCH

 

Just over 10 months after its heralded takeoff at Port Columbus, the airline that became famous for its $10 fares said Friday evening that its final flight of the day would be its last.

 

The decision, made after a Friday board meeting, left hundreds of Skybus ticketholders stranded and its 450 employees out of work.

 

More at link below:

 

Text of Skybus announcement

Skybus Airlines will cease all operations effective Saturday, April 5.

 

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.

 

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.

 

Passengers holding reservations for Skybus flights scheduled to depart on or after Saturday, April 5, 2008 should contact their credit card companies to arrange to apply for a refund. More information for customers and others will be made available on the Skybus web site (www.skybus.com) as it becomes available.

 

All flights for Friday, April 4 will be completed. Passengers holding reservations on flights for Friday, April 4 should check in for their flight at a Skybus kiosk at the airport instead of the Skybus website.

 

http://dispatch.com/live/content/business/stories/2008/04/04/skybust.html

Long story short, don't expect this to last longer than 3 quarters; a year at max. It's doomed to failure.

 

And here's the letter I sent to the Mayor's office a year and a half ago that I posted on here:

 

Gladly.

 

Here's the letter I sent to the mayor's office regarding my deep concerns over the proposed start-up of Skybus:

 

Good day Mr. Coleman:

 

I am writing this letter in regards to the proposed low fare carrier to

be based out of Columbus, known as Skybus Airlines. To be frank, I must

say this could be one of the most detrimental things to happen to

Columbus aviation, and I am truly worried about its possible start and

the effect it could have on the city.

 

I understand the desire to connect our city to the global aviation

network, which is a wonderful goal that should be immediately pursued.

However, there are far better ways to go about this endeavor. Basically,

all my concerns are covered in the following analysis from the Emerging

Airlines Monitor:

 

http://emergingairlines.blogspot.com/

 

In short the airline's ability to:

 

1. Make good on their business model (how can Skybus maintain high

productivity by serving short stage lengths while serving routes like

Columbus-Seattle/Kansas City/San Diego?).

 

2. Provide customer service representative of our city (it's somewhat

difficult trying to rebook your flight due to a weather cancellation

when you're face to face with a kiosk).

 

3. Serving preferred airports from Columbus (why fly to Trenton, NJ when

I want to be in New York City? The cab fare alone would make flying

directly into NYC far more worth while).

 

4. The effect on current competition (no airline in their right mind

would try to match Skybus' insanely low fares, so increased competition

would be null. In fact, I could very well see airlines that have

invested in Columbus, such as Delta and Southwest, simply looking for

"greener pastures" now that city support has been thrown behind this

start-up carrier).

 

5. The null effect on the business community (a Ryanair type airline

that does not offer a frequent flier program, interline agreements,

service into primary airports, and a one-class ultra economy seating

configuration won't pander to Columbus' most important travel group, the

business traveler).

 

As a student at The Ohio State University about to complete a major in

aviation management, the success of Columbus' aviation community is of

extreme importance to me. I honestly cannot see this as a viable

project. There are so many other ways to get Columbus' commercial

airline service level up to a standard that is more fitting to our fair

city.

 

Thank you for your time.

 

I wonder if preparing a follow-up letter would be in bad taste, even if they did brush me aside a year and a half ago.

I also wonder if the FAA inspection debacle played a part. If the FAA is going to start crossing every t and dotting every i, then the guy that wants to out Southwest, Southwest just isn't going to be able to fudge the rules like necessary for its turn around and similar issues.

The hard part for Columbus is that everyone is shrinking right now under the oppressive weight of high gas prices. However, the question is how many Skybus riders go back to Dayton, CLE, Akron-Canton, and even CVG. How many folks took trips because of the price, which means somebody else won't get the same numbers.

A more broad article that has information on two other airlines...

 

Skybus becomes third airline this week to close

CNN, April 4, 2008

 

(CNN) -- Skybus Airlines announced Friday it is shutting down its passenger flights -- becoming the third airline this week to cease operations.  The low-cost carrier couldn't overcome "the combination of rising jet fuel costs and a slowing economic environment," the company said Friday.  "These two issues proved to be insurmountable for a new carrier."

 

Skybus, an Ohio-based airline founded in 2004, will cease operations effective Saturday.  Earlier in the week, ATA Airlines and Aloha Airlines announced they would shut down flights as both companies work through bankruptcy filings.

 

This is not the end of it. Watch trucking companies go out of business.

They sent this letter this morning:

 

Dear Skybus Customer:

 

We regret to inform you that Skybus Airlines will cease all operations effective 12:00 a.m. Saturday, April 5. As a result, your Skybus flight has been cancelled.

 

Skybus will not be processing refunds directly. To arrange for a refund on your reservation, please contact your credit card company directly. If you purchased flight insurance for your reservation, please refer to your insurance confirmation from AIG for information on filing a claim.

 

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.

 

We deeply regret the impact this decision will have on our customers, as well as our employees and their families, 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.

 

More information will be made available on the Skybus web site (www.skybus.com).

 

 

 

 

The losses must have been TREMENDOUS. Usually it takes 5 years before a company folds. Investors must have put their foot down.

I'm surprised it lasted this long, as Columbus is not a leisure or business market.  I think the business community will suffer for a while, before a legacy carrier steps in.

 

Based on what i've read here, seems as though Columbus might have been trying to put all its airline eggs in one basket.  Oh well.

 

I hope that those who lost their jobs will be able to rejoin the work force quickly.

 

SkyBus was the fourth airline to close this week.  Champion, Aloha & ATA also went down in flames.

 

 

Passengers stuck on one-way trips

Saturday,  April 5, 2008 3:15 AM

By Ron Carter, Tracy Turner and Amy Saunders

 

THE COLUMBUS DISPATCH

 

The bad news started out as a rumor as passengers waited in line last night for a flight to Biloxi, Miss., on Skybus Airlines. Some people thought it was a joke.

 

Soon, suspicions became reality: They were about to board a plane for a one-way trip to the Gulf Coast. Good luck finding a way back.

 

http://dispatch.com/live/content/local_news/stories/2008/04/05/travelers.ART_ART_04-05-08_A1_S89RB9M.html?sid=101

 

 

Fuel costs will claim more airlines.

Who do you think will be next?  Alaska?  USAir?  Northwest?

This sucks ...

 

We were going to book our NY tickets today ... how ironic.

 

Man, I wish there was something we could do about these fuel prices!

Use less fuel.

 

Push for more passenger trains.

 

Skybus was trying (and failing) to compete in a short-haul market that burns up jet fuel at much higher rates due to the many take-offs and landings in any given day of operations.  That's why the major airlines have been cutting these short routes: there's just no money in it for them and the costs are too high.

 

Just last week, Harrisburg (PA) lost its only non-stop service to New York.  The air carrier, a small commuter line cited its inability to compete with .... guess what?.....  Amtrak.  Their 110mph, all electric passenger trains have it all over a fuel guzzling jet.

^ We looked into Amtrak, but that makes it a 16 hour trip! :( ... This cuts into our PTO time at work and shortens our actual "vacation" time.

 

 

 

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, stop 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.

 

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?

STATE, LOCAL INCENTIVES

Cash could ease airline’s debut

Officials offer $57 million to help Skybus spread its wings from Port Columbus

Friday, September 22, 2006

Marla Matzer Rose and Paul Wilson

THE COLUMBUS DISPATCH

 

Efforts to create a Columbus-based airline received a major boost yesterday when local and state officials offered plans to contribute $57 million to help get the airline started.

 

MORE: http://dispatch.com/business-story.php?story=dispatch/2006/09/22/20060922-A1-02.html

 

Remember this? CMH_downtown predicted the airline would last three quarters to a year. He was right on.

 

What could that $57 million have done if directed toward the Ohio Hub as a match for more federal and other funds?

Man ALOT of pilots or looking for work. I thnk some might end up taking up another career.

Guess I really never the followed the Skybus story that closely -- I missed the part about $57 million in government incentives. That's money down the drain now right? All so people (many apparently from outside the Columbus metro) could buy cheap direct flights to secondary airports. When will the insanity end! :-o

BuckeyeB..... that $57-Million in incentives sounds like the beginning of a good letter to the editor of the Dispatch about how that could have been invested in restoring passenger rail in the 3-C.  Wonder if these "investors" will pony up now to support Governor Strickland's request to have Amtrak begin start-up service in the 3-C?

^

Noozer, that's the $57 million dollar question! Let's also 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. 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.

Needs a little wordsmithing, but I think you just wrote the heart of a good letter to the editor.

:-(  SkyBust  :-(

 

Weikle's Skybus ceases operations

South Charleston native vows he's 'not going to give up' on plans at Yeager for low-fare Jet America

By Sarah K. Winn, Rick Steelhammer, Charleston Gazette, April 5, 2008

 

The shutdown on Friday of Columbus-based Skybus Airlines, founded by South Charleston native John Weikle, might spell doom for Jet America, the low-cost startup Weikle planned to launch at Charleston's Yeager Airport next year.

 

Skybus announced its closure, effective today, on Friday night. The airline, which offered fares as low as $10 on 80 daily flights to 15 cities, began operating on May 22, 2007. The airline employed about 450 workers in Columbus and its second base of operations in Greensboro, N.C.

 

More by clicking headline above:

Any one know how much Jet fuel cost? The cost per barrel did not go up that much higher than when this company first started 11 months ago.

SKYBUS SHUTDOWN

How could it happen?

Fuel prices, management woes jolted airline into sudden tailspin

Sunday,  April 6, 2008 5:34 AM

By Marla Matzer Rose

 

THE COLUMBUS DISPATCH

 

Beneath the thin veneer of perky ads and some upbeat news stories about the new airline there were signs of trouble at Skybus Airlines:

 

It dropped routes and discontinued flights.

 

Customers weren't snapping up tickets for the popular summer travel season.

 

And two top officials left the company in the last month.

 

Full story at:

 

http://dispatch.com/live/content/local_news/stories/2008/04/06/skybus_aftermath_main.ART_ART_04-06-08_A1_4V9RIFN.html?sid=101

couldn't they had just added $40 to every ticket to offset it? Do something to stay alive. Geez

Not sure.  They were so heavily identified as a "low cost" air carrier that a large fare increase would have likely driven away some fliers.  It most certainly would have given their competitors an "aha" moment to counter-market against Skybus and go after Skybus' customer base.

 

Given that the rest of the industry in sorry shape, we'd better be pushing our leaders to upgrade and expand passenger rail (both in availability and speed) or this nation is going to be in a much larger mobility crisis than it now faces with gasoline prces at the pump.

Yes, and cities which are secondary markets like Columbus, Dayton, Akron, canton, Youngstown and others in Ohio have to realize that they will never have the level of air service they desire. They have to give up that pipe dream and swallow their civic pride.

 

Leaders in these cities must come to grips with that fact and do the next best thing: Integrate themselves into a public transportation system that allows business people and citizens to seamlessly move from one mode to another to get where they want to go.

 

That means the future of Columbus and places like it is more linked to the development of intercity rail passenger service and a massive investment in connecting local rail and bus transit than it is some dubious discount air carrier.

 

The other thing I didn't like about the blind rush to aid Skybus, is that the markets served did nothing to help people get around within Ohio. All of their service flew to places like Florida, New York or the west coast, where there already is outstanding air service. This was just more of the same, once you got past that $10 fare.

 

So we are still stuck with driving everywhere in Ohio. How nice it would be to hop a fast train in Columbus, sit back and enjoy the ride, get off at Cleveland Hopkins and fly anywhere in the world. That's the service we should have and leaders here should work hard to find ways to put up local money toward the construction of a world class intermodal hub, which will make it possible to start train service here.

Here's a letter I wrote to the Columbus Dispatch:

 

To The Editor,

 

The failure of Skybus should not surprise anyone, since the people involved with the airline had a very poor business plan, which failed for various reasons, including high fuel costs. Gimmicks like $10 tickets stopped working and the airline folded, reflecting the reality that starting a new airline is very difficult, especially today.

 

The problem is that in the hysteria surrounding the start of this airline, city leaders were swept up in the moment and plowed in millions in aid (fortunately, mostly tax breaks instead of real cash). The lure of new jobs and economic development proved irresistible and officials jumped at the chance to throw money at Skybus. They didn’t stop to look at the shaky state of an airline industry whose landscape is littered with the carcasses of countless airlines which crashed on takeoff.

 

We need to be more objective and start to take into account not only the viability of ventures such as Skybus, but whether they really meet the needs of the communities they are supposed to serve. Skybus might have allowed us to travel to Florida on the cheap, but didn’t do anything to help us get to work or travel in Ohio without having to drive. All of their service flew to places like Florida , New York or the west coast, where there already is outstanding air service. 

 

So Skybus is dead and here we are, still stuck with driving everywhere in Ohio . How nice it would be to hop a fast train in Columbus, sit back and enjoy the ride, get off at Cleveland Hopkins International Airport and fly anywhere in the world. That's the service we need and leaders here should work hard to find ways to put up local money toward the construction of a world class intermodal hub in downtown Columbus for train service.

 

It seems to me we should start thinking about these things and if the city and others can drop a dime for such a dubious venture, they should do the same for rail passenger service. 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 the proposed Ohio Hub 3-C Corridor passenger train service?

 

Leaders in cities which are secondary markets like Columbus , Dayton , Akron , Canton , Youngstown and others in Ohio have to realize that they will never have the level of air service they desire. They must come to grips with that fact and do the next best thing by developing a public transportation system which allows people to seamlessly move from one mode to another to get where they want to go.

 

That means the future of Columbus and similar sized cities is more likely to be tied to the development of intercity rail passenger service than new discount air service. There should also be a massive investment in connecting local rail and bus transit, focusing all those jobs and development downtown, where it’s needed. The streetcar is a start.

 

I hope our officials will help us adapt to changing times by working to give us real intercity and local transportation choices. Cheap airfares are nice, but we need an answer to high gas prices that affect everyday living.

 

Sincerely

Yes, and cities which are secondary markets like Columbus, Dayton, Akron, canton, Youngstown and others in Ohio have to realize that they will never have the level of air service they desire. They have to give up that pipe dream and swallow their civic pride.

 

I actually agree...to a point. Akron and Canton I think can sustain itself because of it's lower fares and different carriers from Hopkins and Pittsburgh (an increasing number are flying from there). Not only that, the job sector in Southern Northeast Ohio is growing, and with the growth at UA, Goodyear and such, there is a demand for airline service in the market. What I would like to see, however is with the planned service of the Ohio hub, is a dropping of the connector flights (ie. Cincy, Detroit, Chicago) and a continued limited expansion of mid/cross country flights.

 

A glimpse into some of the larger issues that led to the Skybus "bust" but which face all of us as transportation consumers:

 

http://www.latimes.com/business/la-fi-airlines7apr07,0,4132228.story

 

From the Los Angeles Times

AVIATION

Passengers and airlines under pressure

Higher fares, more delays and crowded planes are expected as carriers struggle with rising fuel costs and increased regulatory scrutiny.

By Peter Pae and Ken Bensinger

Los Angeles Times Staff Writers

 

April 7, 2008

 

The nation's air travelers may be wondering whether last week's three airline shutdowns signal more trouble ahead. But a bigger concern this spring may be the likelihood of more flight delays, jammed planes and even higher ticket prices.

 

With rising fuel costs, fewer planes in the sky and heightened safety concerns with aging aircraft, travelers can expect flights to be more expensive, crowded and late, giving passengers more reasons not to fly this year.

 

"It sure is a lot more expensive to fly these days," said Barry Trupp, a farmer who lives outside of Denver and was flying back home from Los Angeles International Airport on Sunday. "I wonder if a lot more people will take driving vacations."

More at link above:

American said Friday that it was freezing the hiring of management and support staffers as it struggled with high fuel costs. The nation's largest airline said it expected to spend $9.3 billion on fuel this year, up nearly 40% from last year.

 

If that's true, i think they should get into the fuel business.

A note concerning my letter. Today I got a phone call from the Dispatch. It looks like they are going to run it! :-D

That's always an indication it will run and given the continuing importance of the story, my guess is that it will run soon.

 

BTW:here's the latest on the $$$$ cost:

 

Skybus owes creditors up to $100 million, bankruptcy filing shows

Monday,  April 7, 2008 12:01 PM

THE COLUMBUS DISPATCH

 

Skybus Airlines owes its creditors as much as $100 million, according to its filing in U.S. Bankruptcy Court in the state of Delaware.

 

The Columbus-based airline announced Friday evening that it was going out of business effective Saturday, closing less than a year since it started flying at Port Columbus.

 

More at:

 

http://dispatch.com/live/content/business/stories/2008/04/07/skybus_bankrupt.html?sid=101

^^You made a great point, and your thoughts should be published.  Please do post once it is posted.  I can't wait to see it up on their website.

I take it the Air Planes were leased and not owned? I don't see it in the creditors list.

Airbus is on the creditor's list.  I believe they leased some of their planes and had orders to buy new ones.

 

However you cut it.... $$$$$ down a black hole.

Seems the only one that coming out on top is the fuel companies, But i do see they owe World Fuel Management of Chicago some serious jack.

Note the highlighted reference to fuel costs.

 

 

Details of Skybus bankruptcy

Workers get harsh facts, say goodbyes

Tuesday,  April 8, 2008 3:05 AM

By Marla Matzer Rose

 

THE COLUMBUS DISPATCH

 

Gone were flight attendants' black T-shirts promoting "rockin' " $10 fares. The pilots' olive-green uniforms, dubbed "Ranger Rick" outfits by some competitors, were nowhere to be seen.

 

As 150 or so former Skybus Airlines employees emerged yesterday morning into the warm April sun from a meeting at the airline's hangar at Port Columbus, they sported T-shirts, shorts and jeans.

 

More at:

 

http://dispatch.com/live/content/local_news/stories/2008/04/08/skybus_employees.ART_ART_04-08-08_A1_CO9S7ES.html?sid=101

http://www.news-record.com/apps/pbcs.dll/article?AID=/20080408/NRSTAFF/369006678

 

The Return of Skybus????

 

This story showed up in the Greensboro paper about the original founder of Skybus attempting to revivie the airline.  Is this a joke?  Who would fly them now?

^Of course he could be referring to reviving it as his Charleston WV based airline. 

This guy wants to fatten his own pockets. He should be investigated.

If this twit would put that kind of energy into passenger rail service, he'd be on to something.... but he seems destined to become the living definition of the word "insanity":  doing the same thing over and over and expecting a different result.

The problem with this guy and others like him is that local officials aid and abet this behaviour by turning on the $$$ spigot at the mere mention of the magic words "jobs" and "economic development." It does not seem to matter how that these promises are mostly pie-in-the-sky.

 

On top of that, the entire transportation funding setup in this country is so heavily skewed to fly/drive that any "solution" nearly automatically defaults to those two modes, no matter what the choice should be from a logical standpoint. Sometimes we get lucky and something good happens, but all too often this is what we get.

 

Would it be too much to ask that officials start looking more critically at the airline industry before jumping off the cliff with our tax dollars?

The airline listed its liabilities as greater than $50 million to as much as $100 million. It pegged its assets as greater than $100 million to $500 million.

Interesting. Does this mean that they could potentially come out in the black after everything is paid up?

From the Ohio Attorney general's Office:

 

Consumers can file complaints about airline services and about the costs of arranging alternative transportation with the U.S. Department of Transportation (DOT) online at http://airconsumer.ost.dot.gov, by phone at 202-366-2220 (TTY 202- 366-0511), or by mail to: Aviation Consumer Protection Division, C-75, U.S. DOT, Washington, D.C. 20590.

 

Consumers also can file complaints with the attorney general's office for help disputing credit card charges and filing a proof of claim in bankruptcy court. To file a complaint, visit www.ag4ohio.gov or call 1-877-AG4OHIO (1-877-244-6446).

okay, I'm not financial wizard. But when predicting future costs and future budgets for say an industry that is dependent on fuel or some other material: Don't you usually factor in a predicted inflation for that good? I find it absurd that their financial gurus there didn't factor this in, since every article from SkyBus' perspective is bemoaning the costs of fuel.

 

 

The following is a Washington Post article on the state of the airline industry, may it rest in peace....

 

http://www.urbanohio.com/forum2/index.php/topic,5087.msg274773.html#msg274773