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Skybus / Airlines / Airline News / LCCs / Airline Bankruptcy / → All Tags

Three Years After Skybus Bit the Big One, It's Still Making News

This is a hard topic for us to discuss, because we’re still bitter about the $9 flights that we had to Southern California that were canceled thanks to a pesky little bankruptcy. Even as we hold back our tears, we feel it’s important to recognize the three-year anniversary of Skybus' going belly up.

Several years after its demise, the defunct airline is still making news, as it continues to payback all those investors and companies that believed in cheap airfare as the next big thing. Despite not making too much cash during its short run, the airline was actually able to pay back most of its creditors. We’re hardly bankruptcy law experts, but apparently paying back unsecured debts is kind of a big deal.

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Vintage Travel / Skybus / TWA / Aloha Airlines / Northwest Airlines / Airlines / Airfare Sales / → All Tags

Five Defunct Airlines and Their Best Vintage Sales

We’re always on the lookout for the next airfare sale, but sometimes it's nice to remember the good old, cheaper days. You won’t be able to use any of our latest finds to help you get anywhere, but hopefully it will be a nice stroll down memory lane. Here’s five of our picks for defunct airlines and their vintage sales.

· Trans World Airlines:
The airline better known as TWA was swallowed up by American Airlines in 2001, but before their disappearance they were trying to get butts in the seats to raise some cash. Back in April of 2000 they wanted passengers to beat the winter blues by taking advantage of cheaper fares to the US, Canada, Caribbean, and Europe. For those looking for a classier escape, St. Louis to Paris was $698 roundtrip. New Yorkers could head to Seattle or Los Angeles for just $298, but for $498 we’d rather take a trip to Honolulu. Just remember that all travel must be completed by September 15, 2000.

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Skybus / Airlines / Airline News / LCCs / Airline Bankruptcy / → All Tags

The CEO Of Skybus Finally Speaks Up About What Went Wrong

If a cheap flight is on your holiday wish list, an airline like Skybus would really help out Santa and his elves this year. Too bad we all know what happened to that little orange airline—it crashed and burned on the balance sheets. Long after the airline’s demise, the former CEO Bill Diffenderffer is speaking about what went wrong with his airline. Unfortunately, it was always pretty clear to us, costs went up like crazy and the airline’s fares went down like crazy. At least we finally got to hear something from the big boss.

He stated that the airline ran into lots of trouble all at the same time. Diffenderffer did take responsibility for the failure of the airline, because as he sees it, he was in charge and he did not get the job done. The combination of high oil prices, sinking passenger confidence, and weather problems all led to the airline's adios from the commercial airline business. Planes breaking down and lacking the necessary back-up aircraft didn’t help the cause either.

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Air Azul / JetAmerica / Skybus / New Routes / New Carriers / Airline News / → All Tags

JetAmerica is the New Air Azul is the New Skybus?

You know, we really had some high hopes for start-up LCC Air Azul, but after they simply failed to start up and began the sputter into obscurity, we sighed with relief that we had held off buying our tickets.

The anxiety and confusion returns however, as the skeleton of Air Azul dances for us once again to the tune of a new name: JetAmerica. What's this? Has the ghost of Skybus past risen to again claim Ohio as a hub? The Cranky Flier thinks so, and we're inclined to agree seeing as how they'd be most likely to pay attention to cities like Toledo or Lansing.

Compounded with this is the fact that Skybus founder John Weikle had planned on branding his second try at an airline with the name "JetAmerica." Honey, we've got a tangled web of airline histories and mysteries here.

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Skybus / Airlines / LCCs / Airline Bankruptcy / → All Tags

Skybus Still Settling All Kinds Of Claims

You know we love Skybus, and even though it’s long gone, every once in a while a little tidbit trickles out from its former base in Columbus, Ohio. Nearly a year after its demise, it looks like the airline is finally settling things up with its former workers. They’ve agreed to settle a class-action lawsuit that was filed by employees who were less than thrilled when they found out that their jobs were abruptly terminated.

The lawsuit alleged that Skybus violated the Workers’ Adjustment and Retraining Notice Act by not giving employees advance notice of at least 60 days. If the employees are anything like us—we found out by watching the Today show and throwing the remote across the room—they didn't get any warning.

The details are still being worked out in bankruptcy court—sounds exciting—so no specific settlement figure has been announced yet. The Columbus Regional Airport is trying to get some $5 million in change as well, and it looks like when everything is finalized, Skybus will be able to pay about 76 cents on the dollar to those who it left high and dry—guess that’s better than getting nothing.

Related Stories:
·Skybus To Settle Ex-Workers' Suit [Columbus Dispatch]
·2008's Most Missed Industry Casualty Is... [Jaunted]
·Airline Bankruptcy [Jaunted]

[Photo: msmail]

The Jauntys / 2008 Travel Awards / Airlines / Travel News / Skybus / → All Tags

2008's Most Missed Industry Casualty Is...

We won't rehash the old cliche about making money in the airline biz, but 2008's most spectacular flame out was surely a sign of things to come: After taking home the 2007 Jaunty for Best Travel Newcomer--and even writing us a letter of thanks for the honor!--the ultra-ambitious, ultra-low cost Skybus folded in April, a little more than a month shy of its first birthday.

Meant to mimic the success of European LCCs, Skybus had the aggressive on-board sales, in-your-face advertising and out-of-the-way airports that have made Ryanair, EasyJet and legions of imitators successful. But a home base in Columbus, ever-rising fuel prices, poor public relations--particularly during a Christmas '07 storm--and the general difficulty of starting an airline from scratch killed the carrier before many had a chance to try it.

But spirit of the bygone airline still lurks. Beyond the Skybus Flickr pool, there's the potential new airline from LCC champion John Weikle and a new gig for former Skybus COO Ken Gile at Flydubai, a low-cost airline set to take off in 2009.

Related Stories:
· Skybus Shuts Down [Jaunted]
· Nobody Wants Skybus [Jaunted]
· The Diff: Taking Notes from Gary Kelly [Jaunted]

[Photo: msmail]

Kenneth Gile / New Airlines / LCCs / Low Cost Carriers / Flydubai / Dubai Travel / Skybus / → All Tags

Flydubai Will Use Southwest, Not Skybus, Strategy for Success

Newly appointed Flydubai COO Ken Gile plans to keep costs down at his new low cost carrier by hedging the cost of fuel, a strategy most notably used by perennially profitable Southwest Airlines--but not at Skybus, where he was president and COO until the carrier went bankrupt in April.

The specifics are still being worked out, says Gile:

We are focusing on implementing a successful hedging plan and Southwest Airline's hedging strategy is something we could look at. Fuel is one of the biggest expenses for any airline so we have to look at ways to control it in order to be able to offer the lowest fares in the region.

Flydubai also plans to lower costs by promoting electronic booking and keeping planes in the sky as much as possible, two strategies Skybus did use. Wonder if the new airline will have a call center?

Related Stories:
· Flydubai Plans to Use Fuel Hedging [Emirates Business]
· Post-Skybus Life: Ex-COO Tapped for Flydubai Gig [Jaunted]
· Skybus CEO "Respects" Southwest [Jaunted]

Kenneth Gile / New Airlines / LCCs / Low Cost Carriers / Flydubai / Dubai Travel / Skybus / → All Tags

Post-Skybus Life: Ex-COO Tapped for Flydubai Gig

New low cost carrier Flydubai will have a familiar face running the show: Former Skybus COO Kenneth Gile. He's been tapped to tackle the same job for the nascent airline, which hopes to be flying by summer of next year.

It won't be the first time in the Persian Gulf for Gile, as he started his commercial career with Saudi Arabian Airlines before joining Southwest, eventually become the Texas LCC's chief pilot and director of flight operations.

He's not the only Skybus refugee moving overseas, either, it seems. Marla Matzer Rose at the Columbus Dispatch reports that some of the defunct airline's pilots are now working in China. Maybe they'll get rated to fly those nifty new ARJ21s?

Related Stories:
· Flydubai Appoints New COO [Xpress]
· Ex-Skybus Prez Lands in Dubai [CD]
· Flydubai to Launch by 2009 [Jaunted]

Skybus / Airlines / Low Cost Carriers / LCCs / Airline Bankruptcy / → All Tags

Old Skybus Planes Not Yet Enjoying "Retirement"

While Bill Diffenderffer is ostensibly back to his writing career and other Skybus folks are sorting out a bankruptcy mess, the LCC's planes are being shipped overseas to other airlines that, you know, can afford to fly them.

One A319 ended up with Airblue, a newish Pakistani carrier that's looking to expand. Another is on the way to Air Jamaica, which will keep the all-economy configuration in place. Rossiya, a decently-sized Russian carrier is also planning to take delivery of an A319.

Here's hoping all these companies paint over that garish Skybus livery--or at least those punny ads.

Related Stories:
· Skybus' Old Planes Get Around [Columbus Dispatch]
· Skybus coverage [Jaunted]

[Photo: msmail]

Spirit Airlines / Skybus / United / American Airlines / Airline Bankruptcy / Airlines / LCCs / Low Cost Carriers / Airline Analysis / → All Tags

Staff Cuts Coming to an Airline Near You

Tacky advertiser and low cost carrier Spirit Airlines may be laying off about half its in-flight staff. The airline notified union leaders this weekend, saying cuts are planned for August 1, though a final decision hasn't yet been made. Any accompanying route cuts haven't been announced either, but you've got to expect them.

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Southwest Airlines / Gary Kelly / Bill Diffenderffer / Skybus / → All Tags

The Diff: Taking Notes from Gary Kelly

This interesting photo from the Fisher College of Business at Ohio State University just landed in our inbox. Seems when Southwest CEO Gary Kelly stopped in recently to share words of wisdom with OSU MBAs and aviation students, a familiar face was in the crowd. Says our tipster:

In the back row of the photo you can make out Bill Diffenderffer. Seems a little late for him to be learning how to run an airline.

Related Stories:
· Southwest CEO at Fisher [OSU]
· Skybus coverage [Jaunted]

[Photo: OSU]

GYY / Airports / Skybus / Viva Aerobus / → All Tags

Gary Airport Keeps Hanging Hopes on LCCs

Just a couple months ago, Gary/Chicago International was hyping Skybus as the spark that would turn the airport into the region's third air traffic hub. But the ultra-LCC only managed 23 days at GYY before flaming out, leaving the airport without a commercial carrier yet again.

Despite the setback, the airport is moving forward with a plan to link the South Shore Line commuter rail to the terminal, providing a seamless connection between GYY and downtown Chicago. That sort of easy-to-use public transportation is exactly what would make the airport a marketable alternative to O'Hare and Midway--if only passengers had the chance to use it.

The new Mexican LCC Viva Aerobus has applied to fly to Gary but can't start service to Monterrey until the DOT gives the OK. If and when that happens, maybe the combo of low fares and easy airport access will finally end the curse of the LCC at GYY. Or maybe not.

Related Stories:
· Airport Authority Outlines Train Station Plans [NWI Times]
· Skybus Travel: "Significant News Event" in Gary, Indiana Today [Jaunted]
· Bill Diffenderffer Says Skybus Is No Hooters Air [Jaunted]

[Photo: Google Maps]