COLUMBUS– On April 05, 2008, Skybus Airlines (SX) ceased its operations. Skybus Airlines was a privately owned airline headquartered in Columbus, Ohio, USA. Operating as an ultra-low-cost carrier inspired by the European airline Ryanair (FR).
Its goal was to become the most affordable airline in the United States. The company’s strategy focused on serving routes without direct competition from other airlines, akin to Ryanair’s European approach, and on utilizing secondary airports instead of major hubs.
A Story of Inception, Expansion, and Challenges
Following the downsizing of America West Airlines (HP) Columbus, Ohio hub, John Weikle, the founder of Skybus Airlines, initiated fundraising efforts to establish the airline in the same city. Two years later, Bill Diffenderffer was appointed CEO, leveraging his prior experience as in-house counsel for Eastern Airlines and CEO of Continental Airlines System One Reservations.
Skybus commenced operations as the most heavily funded airline in US history, with Weikle resigning shortly after its inaugural passenger flights.
On April 24, 2007, Skybus Airlines unveiled its initial eight destinations, originating from Port Columbus International Airport (CMH). Initially, the airline adopted a strict point-to-point service exclusive to Columbus. However, it expanded to include direct flights from Portsmouth, NH, to two Florida locations. The announcement also detailed ticket pricing and additional fees. Service commenced on May 22, with ambitious plans for rapid expansion.
The airline’s expansion surpassed the original business plan, extending to cities not initially targeted by management’s computer models. Skybus favored smaller, cost-effective airports near major markets, such as Portsmouth International Airport (PSM), for serving Boston. Marketed as an ultra-low-cost carrier, Skybus offered ten seats on each flight for $10, with minimal frills and additional charges, including checked baggage fees.
On July 24, 2007, Skybus gained approval from the U.S. Department of Transportation for international flights to Cancún, Mexico, and Nassau, Bahamas. Two months later, daily service from Portsmouth to St. Augustine and Fort Myers, Florida, was announced, utilizing Charlotte County Airport (CLT) in Punta Gorda.
Skybus Airlines Cease Operations
During the Christmas 2007 travel season, Skybus encountered operational issues with two of its aircraft, resulting in the cancellation of 25% of scheduled flights over two days. Inadequate de-icing contracts for the winter of 2007–08 led to significant delays and increased costs. On March 24, 2008, CEO Bill Diffenderffer resigned to pursue his previous career as an author.
Following the departure of several key managers, Skybus made an announcement on April 4, 2008, declaring the cessation of all flight operations and the initiation of Chapter 11 bankruptcy proceedings.
The airline’s website stated that the decision was attributed to the formidable challenges posed by soaring jet fuel costs and a sluggish economic climate.
Skybus became the fourth U.S.-based airline to cease operations or announce impending closure during the week of March 31, 2008, following Aloha Airlines, ATA Airlines, and charter airline Champion Air.
With approximately 450 employees, predominantly in the Columbus, Ohio area, Skybus’s shutdown resulted in widespread layoffs and left many passengers stranded mid-journey. Despite this setback, Port Columbus was minimally affected by the airline’s closure, as the vacated space enabled existing carriers to expand their services.
Additionally, the introduction of a nonstop Delta Air Lines (DL) flight from Columbus to Los Angeles (LAX) further bolstered the airport’s connectivity to major airline hubs across the United States while also accommodating the arrival of AirTran Airways.
Skybus Fleet
On October 26, 2006, Skybus revealed a partnership with Airbus, intending to procure 65 Airbus A319 aircraft. While the order’s retail value was estimated at $3.7 billion, the price remained undisclosed.
Notably, these aircraft were set to be accompanied by a 12-year maintenance agreement, a pioneering initiative by Airbus. Skybus acted as the launch customer for this maintenance plan aimed at cost management.
The aircraft was slated to feature cutting-edge technology, including Electronic Flight Bags (EFB), Heads-Up Displays (HUD), and TCAS II terrain and traffic avoidance systems integrated with Enhanced Ground Proximity Warning Systems (EGPWS). Skybus intended to utilize leased aircraft of the same type until the delivery of the new fleet commenced in late 2008.
On February 14, 2007, Skybus announced its selection of the CFM56-5B engines, manufactured by CFM International, to power the 65 A319 aircraft. While the specific engine price remained undisclosed, the estimated list price for the order exceeded $750 million.
As of April 2008, Skybus Airlines operated a fleet comprising 13 Airbus A319 aircraft out of a total order of 63. Twelve were received in December 2007, with one additional aircraft acquired in March 2008. Notably, two of these aircraft were leased from Virgin America. The average fleet age stood at 4.3 years.
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