The Passenger Seat
Whether you ride, drive or fly, transportation issues affect everyone. Especially when fuel prices are so high. Join Thomas V. Bona as he examines the things that make the world move.

Guess it was good we didn’t get Skybus

April 4th, 2008 at 08:40pm Thomas V. Bona

Skybus shuts down

File this under “unsurprising news at a surprising time”. Ultra-low-cost carrier Skybus is shutting down. While not said on their Web site, a press release the company just sent out indicates it’s also filing for bankruptcy. It joins ATA Airlines and Aloha Airlines, which also abruptly shut down this week.

The controversial Skybus, which offered fares as low as $10 but then charged for pretty much anything else, didn’t even last a year. Fuel prices have gone up around 60 percent in that time, according to the International Air Transport Association. A bad time to start up an airline, especially one relying on untested routes like Gary to Greensboro and Milwaukee to Columbus and using a model not seen in the US before (though popular in Europe with Ryanair). I don’t think it’s the last we’ll see of that model, but at least now I don’t have to write the phrase “ultra-low-cost carrier” anymore.

It’s no secret Chicago Rockford International Airport had spoken to them over the past year about coming here, but nothing got too serious and they chose Milwaukee and Gary instead. Poor Gary. You think RFD has problems keeping airlines? Gary is back down to none, though they’re working on some possibilities there.

Who will go down next?

Entry Filed under: Uncategorized

5 Comments Add your own

  • 1. ANCJason  |  April 4th, 2008 at 9:05 pm

    Who will go down next?

    There’s lots of speculation about Frontier. I love that airline, but let’s face it - when Southwest moved into Denver, I think that that might have been the first nail in the coffin.

    Apparently there is a lot of local customer loyalty for Frontier in Denver, but the fact remains that Denver, with a metropolitan area population of 2.5 million, can’t support a three hub operation, and Southwest has a lot of daily departures out of there to over 20 cities. With United competing with at least 70% of Frontier’s network, it isn’t exactly easy for Frontier to find a niche.

    That’s my guess, anyway. I hope not, however, since they are a sure thing for RFD when this crisis boils over.

  • 2. ANCJason  |  April 4th, 2008 at 9:20 pm

    I think that if the City of Chicago wants Gary to work, then they are going to have to do what Los Angeles World Airports did with Palmdale (and what Rockford has done as well). Issue a major carrier a $5 million revenue guarantee to operate a service to a major hub (UA to IAD or DEN could work since they do not operate at nearby MDW) for a period of two years in order to cultivate demand.

    So long as Southwest is at Gary, they are going to be isolated to public charters, at best.

  • 3. ANCJason  |  April 4th, 2008 at 9:20 pm

    Correction on 2nd paragraph - Southwest at Midway

  • 4. ANCJason  |  April 5th, 2008 at 2:44 am

    Last post, and I’ll shut up….

    I also think that Sun Country might be next. Not alot of good news coming out of Minnesota lately.

    Further pondering Gary, I forgot that United has operations at nearby South Bend, as well, so perhaps United would’nt be interested in long term growth at Gary, if subsidized. American, on the other hand, would be perfect since they don’t serve Midway or South Bend. Your thoughts, Thomas?

  • 5. JohnW  |  April 5th, 2008 at 7:18 am

    Sun Country’s still in business???????????

    If you ever want to experience the worst flying trip imaginable, fly Sun Country.

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