5/01/2008 at 2:00 PM
Tags: Skybus, Airlines, Low Cost Carriers, LCCs, Airline Bankruptcy, John Weikle (all tags)
A few weeks ago, rumors were swirling that Skybus could come soaring back to life. And the Columbus Dispatch reported that the carrier's assets, including its valuable operating certificate, were being shopped around. But as it turns out, no one wants them.
Airline chief Mike Hodge says nobody's even bid on his company's future aircraft orders, the Skybus name or that operating certificate. And the one guy who might've been interested, John Weikle, was too busy sending conspiracy theory-laden emails to former Skybus employees to pony up an actual offer.
The LCC is still open to selling off its goods, but after so many airline bankruptcies it's hard to imagine who'd want to buy them.
Related Stories:
· No Second Chance Expected for Skybus [Columbus Dispatch]
· Skybus Lives on in Photos [Jaunted]
· Skybus coverage [Jaunted]
[Photo: msmail]
by pbb
5/01/2008 at 9:15 AM
Tags: Emirates, Airlines, Airline Bankruptcy (all tags)
Airlines are failing around the world. From Hong Kong to the United States and as far off as South Africa, rising fuel costs and a glut of other excuses are sending airlines to the wall. But there's always gotta be someone who plays by different rules and that seems to be Emirates: they've just announced that their profit rose by 62 percent in the last year!
So how come Emirates is raking in the cash while everybody else is going broke? They just keep increasing their capacity for both passengers and cargo, and they're filling it up, too. That got them to a $1.36 billion profit for 2007.
Emirates is planning to keep getting bigger and bigger, with a total of 58 A380s on order. They're also thinking of selling off between 20 and 30 percent of the government-owned business to the public. If you're nervous about booking other airlines, Emirates seems like the one that's still going to be flying when your departure date actually comes 'round.
Related Stories:
· Emirates Air Year Profit Soars [Guardian]
· Airline Bankruptcy coverage [Jaunted]
[Photo: mr_nhw]
by amandak
4/28/2008 at 8:30 AM
Tags: Eos, Airlines, All Business Class Carriers, Silverjet, Airline Bankruptcy (all tags)
Why should domestics carriers get all the press? Eos Airlines--which kicked it biz class between NYC and London--made its final two flights Sunday. All future flights were canceled.
Leave it to a carrier that hypes how exclusive it is to leave passengers so royally screwed. Silverjet has stepped in to help out--and, the competitor undoubtedly hopes, earn some new customers. The only remaining biz class carrier still doing NYC-London will fly stranded passengers home for the same price they paid on Eos.
Interestingly, now-bankrupt Eos just sent out an email last week announcing:
Now we have a term sheet with a current investor for the financing needed to take us to corporate profitability in 2009.
Seems that deal wasn't as done as anyone expected. The carrier even addressed its deal-making trouble in its final press release:
It is regrettable that, even though investors continue to be enthusiastic about our business model, and even though we had a term sheet in hand, we were unable to close on the financing we needed.
Your move, Silverjet.
Related Stories:
· Eos Airlines [Official Site]
· Silverjet's Eos Customer Offer [Official Site]
· All Business Class Carriers coverage [Jaunted]
· Airline Bankruptcy coverage [Jaunted]
[Photo: Vidiot]
by pbb
4/21/2008 at 12:00 PM
Tags: Skybus, Airlines, Low Cost Carriers, LCCs, John Weikle, Airline Bankruptcy (all tags)
After its catastrophic implosion, it's hard to imagine Skybus actually returning to the skies. But industry watcher Nawal Taneja tells the Columbus Dispatch there's a chance it could happen:
I know there are people interested in the certificate. They just think the management team and the business model weren't right.
He's talking about the "air carrier operating certificate," a document issued by the FAA that lets airlines fly. That, among a bunch of other Skybus assets, are up for grabs now that the company has shut down.
Among those shopping is likely the carrier's founder, John Weikle. (He left the company shortly after it started flying.) Because of a bunch of federal rules, Weikle wouldn't be able to snatch up the certificate and launch Jet America with it, but he could try to revive Skybus, keeping its base of operations in Columbus.
It's too early to say whether any of this will actually happen, of course. But maybe those $10 tickets will be back sooner than we imagine.
Related Stories:
· New Airline Could Rise from the Ashes of Skybus [Columbus Dispatch]
· Skybus coverage [Jaunted]
by pbb
4/11/2008 at 10:18 AM
Tags: Frontier, Richard Branson, Virgin America, Chris Elliott, Airlines, Airline Bankruptcy (all tags)
So now Frontier has filed for bankruptcy, though the carrier won't be shutting down operations during its "restructuring." That means it's time for people on the WWW to start the guessing game as to who's next. Chris Elliott leads the way this morning with a few ideas--complete with odds of bankruptcy. (Sorry, Sun Country, but 2 to 1 is pretty bad.)
Noticeably absent from the list is Virgin America, which some industry analysts say is a candidate for closure. But maybe Elliott left VA off his list because Richard Branson is making the media rounds, talking up his American carrier:
They're doing well ahead of budget and we're very happy with the performance... If you sit here in three or four years time, it'll be flying to all the major American cities.
Well. We'll see.
Given how rapid the Skybus implosion was--and how up-and-down all this renewed Delta merger talk is--we're gonna sit out this round of speculation. If you've got any real info on what's next, you'll find us at the airport bar.
Related Stories:
· Airline Deathwatch: Place Your Bets Please [Elliott]
· Branson Says Virgin Will Not Fail [Reuters]
· Airline Investors Find They're Losing Altitude [Houston Chronicle]
by pbb
4/10/2008 at 9:30 AM
Tags: Low Cost Carriers, LCCs, Oasis Hong Kong, Airline Bankruptcy (all tags)
It really is flavor of the month to shut down your airline, and it doesn't seem to matter which part of the world you're in. The newest victim is Oasis Hong Kong, a long-haul low cost carrier which, until yesterday, was serving routes like Hong Kong to Vancouver and Hong Kong to London.
Not anymore. Wednesday morning's arrival in London was announced as the last flight and stranded passengers are getting deals on Cathay to return to HK. There hasn't been any official reason given, but plenty are now speculating that long-haul and low-cost are simply incompatible concepts. We hope they're wrong.
Related Stories:
· Oasis Goes Bust [Business Traveller]
· Discount Carriers Go the Distance [Jaunted]
· Skybus Shuts Down [Jaunted]
[Photo: hyakuhei]
by amandak
4/04/2008 at 9:12 PM
Tags: Skybus, Airlines, Low Cost Carriers, LCCs, Bill Diffenderffer, Breaking News, Airline Bankruptcy (all tags)
Turns out that selling $10 tickets can't make you money. Skybus, which would've celebrated a year of service on May 22, has ceased operations. While the carrier's website is still up and running, a source tells us--and the Columbus Dispatch confirms--that the ultra LCC is finished as of tonight.
That makes it the fourth airline to shutter this week, another victim of high costs and a brutal industry. Skybus isn't offering any sort of alternate arrangements, so wherever you're stranded, you'll have to find your own way home.
One has to wonder if ex-CEO Bill Diffenderffer saw the writing on the wall and made an early exit. One hopes not, as that's not exactly a samuri move.
Related Stories:
· Skybus coverage [Jaunted]
by pbb
4/03/2008 at 9:24 AM
Tags: ATA, Airlines, Airline Bankruptcy (all tags)
When we speculated that ATA and Southwest might get together for international service, we didn't think it'd involve one of the carriers going bankrupt. But ATA canceled all its flights early this morning after running out of money. That means they aren't flying anywhere:
With the shutdown of all operations and cancellation of all ATA flights, ATA is no longer able to honor any reservations or tickets. ATA customers should seek alternative arrangements for current and future travel. To that end, ATA has contacted the airlines that serve ATA destinations and asked them to provide assistance to ATA customers.
Don't you love how this announcement makes it sound like it's so simple to book another flight out of wherever it is you're now stranded? If you'd rather skip that drama, call your credit card company for a refund--and get a rental car.
Related Stories:
· ATA Airlines Discontinues All Operations [Official Site]
· ATA Files for Bankruptcy [AP, via Google]
· YouTube Keeping Aloha Airlines Memories Alive [Jaunted]
[Photo: ericbegin2000]
by pbb
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