^I got an e-mail today from some one who had this to say about that article:

 

“’There is no airline right now that has a long-term viable business plan’ to survive such high fuel costs.”

 

 

 

That line says it all.  We are watching the meltdown of a key U.S. mobility resource, and nobody has trains ready to fill the gap.  Air travel is steadily reverting to its original status as a niche mode that only the rich or business people on expense accounts can afford.  Its future as a mass/family/leisure-travel resource is in serious doubt.  Once it’s gone, congressional hearings into why the administration did not support a passenger-rail plan are going to be as ugly as the second-guessing about who let Pearl Harbor happen and “Who lost China?” in the 1950s.

More than 500 miles, airlines will continue to thrive, but anything less than that will quickly disappear at these oil prices. Planes spend most of their fuel getting up in the air which is why Delta is putting so many of its eggs in the overseas basket. If they did collapse there are some short term responses . . . one example is ramp up service on trains like the Cardinal, go once a day at least. The challenge is getting over the mountains from the East Coast to the midwest.

It's very very hard to replace jet fuel with any kinda alternative. You need so much thrust to take off that developing anything viable wouldn't work, unless something revolutionary comes along.

And there lies both the problem and an opportunity staring our public officials in the face: how do they plan to fill the gap with airlines backing away from short-haul routes and the pump-price of gasoline predicted to hit $4.00 by Summer? 

 

dmerkow gets it..... the answer is to crank up passenger service on our rail systems.  But that's not going to happen unless we insist our leaders in DC properly fund Amtrak on a long-term and larger basis and also start directing matching funds at the states for plans like the Ohio Hub.

 

And they better get a plan rolling soon, because the economic consequences of either delaying or doing nothing are dire.  Just the impact on summer tourism will be huge, with a lot of people deciding (or being forced) to either not travel or limit travel.  That doesn't even begin to touch the impact (both short and long term) on business travel.

It would be a crime shame  if  this country goes down just because of fuel. Our leaders just didn't have the foresight.

And there lies both the problem and an opportunity staring our public officials in the face: how do they plan to fill the gap with airlines backing away from short-haul routes and the pump-price of gasoline predicted to hit $4.00 by Summer? 

 

dmerkow gets it..... the answer is to crank up passenger service on our rail systems.  But that's not going to happen unless we insist our leaders in DC properly fund Amtrak on a long-term and larger basis and also start directing matching funds at the states for plans like the Ohio Hub.

 

And they better get a plan rolling soon, because the economic consequences of either delaying or doing nothing are dire.  Just the impact on summer tourism will be huge, with a lot of people deciding (or being forced) to either not travel or limit travel.  That doesn't even begin to touch the impact (both short and long term) on business travel.

 

Tourism will be affected and not just the cross-country trips, either. Mr/Mrs Burb isn't going to fire up "guzzler" for a weekend short hop if the prices get high enough. They'll need every dime they have just to commute to work, since they live in far-flung exurbs and still drive a tank-like SUV they either still owe on or can't sell, since no one else wants one.

 

That means even local tourist destinations will have a hard time, unless we can find a way to resurrect the secondary rail lines which once blanketed the state. Pumping money into tourist railroads and having them morph into regional passenger carriers might be one solution.

But a problem with most tourist railroads... with the exception of the Cuyahoga Valler Scenic Railroad or Hocking Valley Railroad.... is that they are run as a large scale "hobby" railroad and some have a hard time making that work.

 

Not all of them connect to what would be considered a tourist destination, and even if they did, they would still have to be positioned to draw some kind of ridership other than tourists.

 

I think we need to be directing dollars at far busier corridors and getting more return on that investment.  If we don't, those tourist railroads will be among those tourist attractions going belly up.

From here: http://walker.columbusunderground.com/?p=562

 

<b>Some quick thoughts on the effects of Skybus</b>

 

I decided to wait a few days to let the news of Skybus sink in before posting anything here about it. I have to admit that I was pretty pissed off when I caught wind of the obituary on Friday night. We had just gotten home from a nice dinner out with some friends, talking about our plans the following weekend to fly via Skybus to Chattanooga for a mini-vacation. And now not only has our flight been canceled, but the airline has informed us that we have to go through our credit card company for a refund, which could take awhile.

 

But anyway, that's old news. What I'd like to know now is what the net effect that this airline will have had on our city when all is said and done. In the <a href="http://dispatch.com/live/content/business/stories/2008/04/07/skybus_bankrupt.html?sid=101">financial report</a> filed by Skybus during their declaration of bankruptcy it was mentioned that <em>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.</em> This came as a bit of a shock to me as I didn't think there would be a chance they'd wind up in the black after their assets were liquidated. If that's the case, then I'm not as mad as I thought I was.

 

You see, during it's short 11-month lifespan Skybus spawned hundreds of articles about their service and about their <em>destination</em>, which was always Columbus for those cities they connected us to. There's a whole plethora of links to news stories and blog postings <a href="http://www.columbusunderground.com/phpBB2/viewtopic.php?t=7863">located here</a> on Columbus Underground, and <a href="http://walker.columbusunderground.com/?p=361">more news here</a> (some of which may not be directly attributed to Skybus, but it helped on a lot of them).

 

If you read through a few of these articles, you might notice that whether or not the authors had good or bad things to say about Skybus, they almost always had great things to say about Columbus. And that's what counts in the big picture.

 

So yeah, I'm still bummed about not being able to take my two vacations to Chattanooga and Milwaukee this spring, but as far as our city stands, this airline wasn't a total loss.

http://blog.dispatch.com/flying/2008/04/skybus_wasnt_for_you_big_city.shtml

 

Could not have said it any better.  SX was never meant for connections, but for people here to get to places they wanted to go.  Thats what people on other sites (like airliners.net) never grasped.  It was a P2P airline, not a hub and spoke airline.  People complained that they couldn't go from PSM to BUR.  It was becasue the flight was meant for those travelling between CMH and PSM.  If you WANTED to go on to BUR, then you could.  It just wasn't going to be convenient like a hub carrier would be.

 

 

But this comes back to why it failed. Columbus (no city except NY and maybe Chicago and LA) can support an airline alone. There just aren't enough folks.

But a problem with most tourist railroads... with the exception of the Cuyahoga Valler Scenic Railroad or Hocking Valley Railroad.... is that they are run as a large scale "hobby" railroad and some have a hard time making that work.

 

Not all of them connect to what would be considered a tourist destination, and even if they did, they would still have to be positioned to draw some kind of ridership other than tourists.

 

I think we need to be directing dollars at far busier corridors and getting more return on that investment.  If we don't, those tourist railroads will be among those tourist attractions going belly up.

 

What you say is exactly correct. Obviously, we'd have to do what you suggest in your message.

Loss of Skybus means more layoffs

Delta division cuts 119 workers from Port Columbus operations

Friday,  April 11, 2008 7:33 AM

By Amy Saunders

 

THE COLUMBUS DISPATCH

Skybus Airlines' abrupt demise last week, which cost its own employees their jobs, has caused more layoffs.

 

A division of Delta Air Lines is laying off 119 employees at Port Columbus in response to Skybus' bankruptcy, the company reported to the Ohio Department of Job and Family Services. The agency made the report public yesterday.

 

More at:

http://www.dispatch.com/live/content/business/stories/2008/04/11/delta_layoffs.ART_ART_04-11-08_C10_QO9T561.html?sid=101

http://www.wtol.com/Global/story.asp?S=8154702

 

<b>Skybus says pact over airplane leases will save $10 million</b>

Associated Press - April 11, 2008 4:55 PM ET

 

WASHINGTON (AP) - Skybus Airlines has reached a settlement agreement on airplane leases that will save the Columbus-based company $10 million.

 

Skybus yesterday urged a court overseeing its bankruptcy case to approve the pact with Air Canada. A hearing on the matter is scheduled to take place April 28.

 

 

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

 

I had a chance to speak with Scott Bernstein this past week.  He is President of the Center for Neighborhood Technology and a recongized authority on sustainable transportation issues.  When I told him about the Skybus purchase of these new Airbus jets, his response was, "The investors better hold a prayer meeting."

 

I just looked back through the first page of this thread.  CMH_downtown really called it.  As did Scott Bernstein.

 

It's too bad this was doomed from the start.  I hope the City, and others, take a lesson from this...  The way Mayor Coleman has really turned into a champion for the Ohio Hub (and the streetcar) over the past several months, it appears that they are.  I suppose that's one good thing to come out of this unfortunate mess...

Skybus' collapse felt across country

Airports' hopes left at gate

Smaller cities lose key airline as they make or plan improvements

Sunday,  April 13, 2008 3:36 AM

By Marla Matzer Rose

THE COLUMBUS DISPATCH

 

The final departure of Skybus Airlines left Port Columbus with holes in its route map, at least $200,000 in unpaid bills and $2.6 million worth of custom-made terminal space that might be hard to fill.

 

Skybus' loss is a setback to Port Columbus, said David Whitaker, the airport's vice president of business development. But for other airports that Skybus served, the carrier's demise is devastating.

 

Full story at:  http://dispatch.com/live/content/business/stories/2008/04/13/skybus_cities.ART_ART_04-13-08_D1_F29T6BP.html?sid=101

(shakes head) ummph ummph  ummph  :roll:

Skybus buffets airport's budget

Hiring freeze likely; new terminal put off

Tuesday,  April 15, 2008 2:59 AM

By Marla Matzer Rose

THE COLUMBUS DISPATCH

 

Skybus Airlines generated about $1 million in revenue for Port Columbus for each of the 10 months it was based there, and its absence will be felt in the airport's budget.

 

But airport officials said they will try not to raise the rates they charge other airlines as they look for other ways to address the drop in revenue.

 

More at:

 

http://www.dispatch.com/live/content/business/stories/2008/04/15/airport_facilities.ART_ART_04-15-08_C10_BN9U7E8.html?sid=101

And the fallout continues:

 

Skybus sued by former employees who allege insufficient notice of layoffs

Tuesday,  April 15, 2008 6:12 PM

By Marla Matzer Rose

THE COLUMBUS DISPATCH

 

Skybus Airlines is being sued in bankruptcy court by former employees who allege the company violated federal law in not giving 60 days’ warning before it laid off 450 workers on April 7.

 

The class action suit, filed today, maintains Skybus is in violation of the Worker Adjustment and Retraining Notification Act. The so-called WARN act requires companies to give 60 days’ notice of any mass layoffs with only limited exceptions.

 

More at:

 

http://dispatch.com/live/content/business/stories/2008/04/15/skybus_warn.html

^ Yeah that would be a bummer losing a job with no notice. Can you imagine if an employer could sue an employee because they gave no notice. lol

 

But they will get NO money the company is bankrupt.

Some good news....for a change.... for the former Skybus employees:

 

http://columbus.bizjournals.com/columbus/stories/2008/04/21/daily10.html

 

Tuesday, April 22, 2008 - 10:27 AM EDT

NetJets hosting job fair for Skybus workers Tuesday

Business First of Columbus

 

After nearly taking off from Columbus itself, NetJets Inc. is doing its part to keep workers left jobless with the collapse of Skybus Airlines Inc. in town.

 

The Woodbridge, N.J.-based company, which houses its operational headquarters at Port Columbus International Airport, said it has assembled several major Central Ohio employers for a job fair 11 a.m. to 2 p.m. on Tuesday at the Aladdin Shrine Temple at 3850 Stelzer Road.

 

More at link above:

State wants refund from Skybus

At issue is $1.15 million in incentives to help start now-failed airline

Wednesday,  April 23, 2008 3:11 AM

By Marla Matzer Rose

THE COLUMBUS DISPATCH

 

The state wants its money back.

 

Skybus Airlines' failure has prompted the Ohio Department of Development to try to recoup $1.15 million worth of incentives it had paid the airline before it ceased operations and filed for bankruptcy on April 5.

 

More at:

http://dispatch.com/live/content/business/stories/2008/04/23/skybus_state.ART_ART_04-23-08_C8_KLA0INT.html?sid=101

 

Skybus Airlines' failure has prompted the Ohio Department of Development to try to recoup $1.15 million worth of incentives it had paid the airline before it ceased operations and filed for bankruptcy on April 5.

 

 

For some strange reason, this made me laugh. 

 

Skybus Airlines' failure has prompted the Ohio Department of Development to try to recoup $1.15 million worth of incentives it had paid the airline before it ceased operations and filed for bankruptcy on April 5.

 

 

For some strange reason, this made me laugh. 

Sounds like fraud to me.

Skybus founder eyes Springfield airport

Friday,  August 29, 2008 - 3:12 AM

By Marla Matzer Rose

THE COLUMBUS DISPATCH

 

Springfield has 63,000 residents and an airport that's been without regular commercial passenger service for decades.  If Skybus Airlines founder John S. Weikle has his way, the west-central Ohio city could become home not only to the next Skybus, but also to the dominant airport in the region.

 

"I would not be surprised to see (Springfield) eventually become the airport of choice for Dayton and Columbus travelers," he said in one of the e-mails he sends regularly to former Skybus employees in the months since the Columbus-based discount carrier abruptly shut down in April.

 

Michael McDorman, president of the Greater Springfield Chamber of Commerce, confirmed that he had had "very preliminary" discussions about a Weikle-backed airline startup.

 

MORE: http://www.dispatch.com

Clearly Weikle doesn't recognize what nearly everyone else quoted in this article does.... that jet fuel costs are why even the legacy airlines have back away from short-haul routes like a scalded dog.  The man has a complete lack of credibility and the fact he is trying to cozy up to Springfield officials only compounds it.  What's next?.... Wilmington?

Actually, it sounds like Cincy is next for him to daydream about. It'll never happen. Anywhere.

Skybus settles class-action suit

Business First of Columbus

Monday, June 1, 2009, 4:32pm EDT

 

More than 300 former Skybus Airlines Inc. employees will be taking a piece of a nearly $1 million settlement struck more than a year after workers sued the defunct carrier over the timing of its demise.  Two former Skybus workers sued the airline last April, alleging it violated federal employment law when it abruptly cut its work force upon filing for bankruptcy protection April 7.  Had the employees been successful at trial, Skybus could have been on the hook for up to $2 million.

 

http://columbus.bizjournals.com/columbus/stories/2009/06/01/daily11.html?surround=lfn

I must say that in cleaning this thread, it was an interesting "flight" down an airborne "Memory Lane" about the rise and fall of Skybus.  Still makes me wonder why so much public money was put into such a concept when the clear indicators were that it was doomed to fail.

I must say that in cleaning this thread, it was an interesting "flight" down an airborne "Memory Lane" about the rise and fall of Skybus. Still makes me wonder why so much public money was put into such a concept when the clear indicators were that it was doomed to fail.

 

Airline biz commands a certain status like the railroads and steamship lines of yesteryear.  You will always be able to find people/investment banks willing to pony up cash for a less than stellar business plan.  remember what Laurence Rockefeller said back in the '60's (he owned a large chunk of Eastern Airlines):  "The easiest way to make a million dollars in the airline industry is to start out with a billion".  Or something to that effect.

Many creditors of bankrupt Skybus Airlines have gotten the majority of their money back

Sunday, March 27, 2011 

By Marla Matzer Rose, THE COLUMBUS DISPATCH

 

Even in bankruptcy, Skybus Airlines did things differently.

 

As the three-year anniversary of the airline's abrupt closing approaches, Skybus is still having an impact on the airline industry.  The deep-discount, no-frills airline made a splash because it charged passengers for almost everything.  Look around, and most airlines have gone down a similar path as a way to survive bad economic times.

 

But the most astounding accomplishment is this: Unsecured creditors have gotten most of their money back, averaging a return of 91.6 cents on the dollar.  Secured creditors, such as credit-card firms and fuel companies, were paid in full.

 

READ MORE: http://www.dispatch.com/live/content/business/stories/2011/03/27/taking-off-debt.html