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Join Us At 0900ET, Friday, 4/10, for the LIVE Morning Brief.
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Sat, Apr 05, 2008

Sky-Busted: Ultra-LCC Skybus To Fold After Saturday

Carrier Began Operations In May 2007

"America's Ryanair" is going the way of the dodo. Skybus Airlines, which prided itself on bare-bones operations and super-low fares, announced Friday the airline will shut down after April 5.

The airline made the announcement in a posting on its website.

"Skybus struggled to overcome the combination of rising jet fuel costs and a slowing economic environment," the carrier wrote. "These two issues proved to be insurmountable for a new carrier.

"We deeply regret the impact this decision will have on our employees and their families, customers, vendors, suppliers, airport officials and others in the cities in which we have operated. Our financial condition is such that our Board of Directors felt it had no choice but to cease operations."

As ANN reported, Skybus launched service in May 2007, offering minimalist accomodations and threadbare customer service in exchange for low ticket prices. The carrier briefly made waves for its offering a handful of seats on each flight for just $10, though most Skybus fares came closer to ticket prices offered by other low-cost carriers.

The price of a Skybus ticket covered the seat to sit in... and not much else. Passengers paid extra for such niceties as checked luggage, or in-cabin food and beverages (no outside food allowed.) The airline also held costs down by selling tickets exclusively online -- no agents at the airport -- and by flying to relatively out-of-the-way airports, in some cases located hours from the major cities they ostensibly served.

While the idea of a no-frills US airline had its merits, many analysts and pundits felt the writing was on the wall for Skybus from the start... and was made even clearer by surging fuel prices. Airline founder and CEO Bill Diffenderffer resigned March 24, reports The Winston-Salem Journal, and the carrier's operations VP left the airline Tuesday.

Skybus recommended passengers with tickets for travel after April 5 to contact their credit card companies for refunds.

This week will go down as one of the worst ever for US airlines, as no fewer than four carriers -- Aloha Airlines, Champion Air, ATA Airlines, and now Skybus -- folded up shop this week, or announced imminent plans to do so. A fifth airline, Sun Country Airlines, announced it will place nearly 30 percent of its pilots on furlough over the summer, though company officials says it plans to rehire them in late October.

(Skybus photo courtesy of Derek Rust)

FMI: www.skybus.com

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