What Is Skybus Airlines?
Skybus Airlines was a low-cost carrier based in Columbus, Ohio. The goal of Skybus was to be the least-expensive airline in the United States. The airline began selling tickets in April 2007 with the first flights the following month. Less than a year later in April 2008, the airline announced its closure and it became a victim of a sagging economy.
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History
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Skybus Airlines announced its initial flights and eight destinations it would fly to on April 24, 2007. The hub airport for the airline was Port Columbus International Airport in Columbus, Ohio. All initial flights were either to or from Columbus, though the airline announced its intentions to expand. By July 2007, the U.S. Department of Transportation granted Skybus the right to start international flights to Nassau, Bahamas, and Cancun, Mexico. The first major problem Skybus encountered was the cancellation of many of its flights during the Christmas 2007 season because of problems with two of its seven planes. Chief Executive Officer Bill Diffenderffer resigned on March 24, 2008, and Skybus announced its closing on April 4.
Destinations
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Skybus chose to fly to smaller, cheaper airports near its destinations rather than the more popular and more expensive airports. The problem with this was that the smaller airports lacked some of services offered at larger airports and the flight selection for connecting flights was not as good. Skybus also used ground-level boarding ramps rather than the jetways that allow passengers to board directly from the terminal. Its destinations included Portmouth, New Hampshire; St. Augustine, Florida; Burbank, California; San Diego, California; Greensboro, North Carolina, Punta Gorda, Florida; Wilmington, Delaware; Milwaukee, Wisconsin; Chattanooga, Tennessee; Gulfport-Biloxi, Mississippi; Newburg, New York; Richmond, Virginia and Chicopee, Massachusetts.
Ultra Low Fares
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Skybus' marketing hook is that 10 seats on each flight cost only $10 one way, but that was all you got. Ticket prices increased as more seats were sold, and there was no assigned seating. The idea was to be an American version of Ryaniar. Those seats had absolutely no frills. You paid extra for checked luggage, overweight bags, food, drinks and pillows.
Business Model
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Skybus looked for routes where other airlines didn't have direct flights in order to minimize competition. They used only one type of aircraft so all of the maintenance, training and parts purchasing would cost less. Employees were paid less than their counterparts with other airlines. Flight attendants, however, earned commissions on products sold and the flight crew could earn stock options.
Advertising
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Another unusual thing about how Skybus operated was that its planes had advertising both on the interior and exterior. Bins, carpeting and tray tables were among the places you might find advertisements. Merchandise also was sold on board the planes. It included items you might find in a gift shop at the airport. Planes also could have full-body ads along the outside of the plane. Nationwide Insurance was the first company to sponsor a Skybus plane in this way.
Bankruptcy
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When Skybus announced it was shutting down all its service on April 4, 2008, the reason given was the rising cost of jet fuel and the slowing economy. The company also was facing unionization efforts, which, if successful, would have increased personnel costs. The airline sought Chapter 11 bankruptcy protection. At the time, Skybus employed 450 people.
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- Photo Credit One of Skybus' jets. Courtesy of Wikimedia Commons.
