Skybus Airlines

Skybus Airlines Inc. was a privately held American passenger airline headquartered in Columbus, Ohio. It was created with the ambition of becoming one of the least expensive airlines in the United States and adopted a business model influenced strongly by European low-cost carrier Ryanair. The company sought to combine very low headline fares with extensive ancillary charges, secondary airports, direct online sales, standardized equipment, and high aircraft utilization. The airline emerged after America West Airlines reduced its presence at Columbus, creating an opportunity for a new carrier to use Port Columbus International Airport as a base. Founder John Weikle began raising capital in 2005, and the company obtained approval to operate in March 2006. Skybus received Federal Aviation Administration certification in May 2007 and obtained a waiver allowing it to begin selling tickets before its first flights. Passenger operations began on May 22, 2007, from Columbus. Skybus advertised a limited number of seats on each flight for as little as $10 one way, excluding taxes and fees. The company expected the remaining seats to sell at progressively higher prices while still undercutting conventional airlines. Customers paid separately for checked baggage, priority seating, food, beverages, pillows, and other onboard items. The carrier also sold advertising space inside and outside its aircraft and merchandise during flights. Tickets were sold online, eliminating the cost of a traditional reservations call center. Its network initially centered on point-to-point routes from Columbus to a group of cities that Skybus believed were underserved by nonstop competition. Rather than concentrating on major airports, the carrier often used smaller or secondary facilities, such as Portsmouth International Airport in New Hampshire for the Boston market, Gary/Chicago International Airport for Chicago, and Charlotte County Airport in Punta Gorda for the Fort Myers area. Skybus later developed a second focus city at Piedmont Triad International Airport in Greensboro, North Carolina, and introduced some routes that did not connect through Columbus. The airline expanded rapidly during 2007 and early 2008, eventually serving 17 destinations on its last day of scheduled operations. It also received authorization to operate international flights to Cancún and Nassau, although its operating history was brief. Expansion exposed the company to route-performance problems, aircraft disruptions, winter-weather costs, outsourced ground-handling difficulties, and rising fuel prices. Skybus cut several routes, reduced frequencies, and abandoned some announced services as fuel became more expensive and the economy weakened. Operational reliability became a visible problem during the 2007 Christmas travel period, when difficulties involving two of the airline's seven aircraft led to the cancellation of roughly one-quarter of scheduled service over two days. The company also lacked prearranged de-icing contracts for the 2007–08 winter season, causing delays and additional costs. Chief executive Bill Diffenderffer resigned in March 2008 to return to writing. On April 4, 2008, Skybus announced that it would cease all operations, with the final scheduled flights departing on April 5. The shutdown reflected the combined pressure of the weakening economy, high fuel costs, and the difficulty of sustaining its aggressive low-fare expansion strategy.

Skybus Airlines was founded in Columbus, Ohio, after America West Airlines reduced its Columbus hub presence. John Weikle began assembling capital in 2005, seeking to create a carrier that could stimulate demand through unusually low fares. The company modeled much of its operating concept on Ryanair, while also presenting itself as more customer-friendly in the manner associated with Southwest Airlines. Its core proposition was to sell a small number of extremely cheap seats and recover revenue through higher fares on later bookings, baggage fees, paid seating, onboard sales, advertising, and merchandise. Skybus applied for operating approval on January 1, 2005, received approval on March 15, 2006, and obtained FAA certification on May 10, 2007. Before launch, the board hired Bill Diffenderffer as chief executive. Diffenderffer had previously worked as in-house counsel for Eastern Airlines and had led Continental Airlines System One Reservations. Skybus received permission to sell tickets before beginning operations, and its initial fares and eight destinations were announced on April 24, 2007. The first passenger flights departed Columbus on May 22, 2007. Weikle resigned from the company one day after those inaugural flights. The airline used Port Columbus as its principal base and initially operated a strict point-to-point system centered on Columbus. Its network favored smaller airports that could offer lower costs and less congestion than major gateways. Portsmouth, New Hampshire, served as the airline's Boston-area airport; Gary, Indiana, served the Chicago market; and Punta Gorda was used for the Fort Myers region. Skybus also sought to reduce costs through online-only ticket sales, direct apron boarding instead of jet bridges, standardized aircraft and equipment, high utilization, and limited overnight flying for crews. Skybus later moved beyond its original Columbus-centered plan. In October 2007 it announced a second focus city at Piedmont Triad International Airport in Greensboro, North Carolina. It introduced service between Portsmouth and Florida destinations in December 2007, and began flights to Stewart International Airport near Newburgh, New York, in January 2008. It also opened service to Wilmington-Philadelphia Regional Airport in March. The company received permission to serve Cancún and Nassau, although the airline's short lifespan limited the development of a durable international network. Rapid expansion produced route instability. In October 2007, Skybus eliminated Bellingham and San Diego, reduced Burbank frequency, and added or increased flights in Greensboro and Punta Gorda. The company said rising fuel prices made shorter and more profitable routes preferable. In early 2008, it announced that most West Coast service would end in June, retaining only a daily Burbank flight. It also canceled planned Niagara Falls service, withdrew a proposed second Columbus–Milwaukee frequency, and announced further reductions affecting Chattanooga, Greensboro, Wilmington, and Gulfport-Biloxi. Reliability and operating complexity weakened the model. During the 2007 Christmas period, problems with two aircraft caused cancellations equivalent to about 25 percent of scheduled service over two days. Skybus had not secured winter de-icing contracts in advance, leading to delays and additional costs. Outsourced ground operations were also associated with continuing baggage delays. The low-cost labor model faced a potential challenge from an organizing campaign by pilots seeking representation by Teamsters Local 747. Skybus was non-union at the time of its closure. Diffenderffer resigned on March 24, 2008. Less than two weeks later, on April 4, Skybus announced that it would cease operations because of the lagging economy and higher fuel prices. The last scheduled flights operated on April 5, 2008. At closure, the airline had offered service to 17 destinations in the continental United States, although several routes had recently been reduced or canceled. Skybus became an example of the difficulty of combining ultra-low advertised fares, fast network expansion, and a young airline's limited resilience to fuel-price and operational shocks.

• 2008

  Operations discontinued

  [1]Skybus Airlinesen.wikipedia.org

  Skybus announced its shutdown on April 4 and completed its final scheduled operations on April 5.

• 2007

  FAA certification and launch

  [1]Skybus Airlinesen.wikipedia.org

  Skybus received FAA certification in May and began passenger service from Columbus on May 22.

• 2007

  Greensboro focus city announced

  [1]Skybus Airlinesen.wikipedia.org

  Skybus announced a second focus city at Piedmont Triad International Airport.

• 2007

  Non-Columbus routes begin

  [1]Skybus Airlinesen.wikipedia.org

  Service began between Portsmouth and Florida destinations, expanding beyond the original Columbus-centered network.

• 2006

  Approval to operate granted

  [1]Skybus Airlinesen.wikipedia.org

  The company received approval to operate on March 15.

• 2005

  Operating approval application

  [1]Skybus Airlinesen.wikipedia.org

  Skybus applied for approval to operate as an airline and began assembling capital in Columbus.

An ultra-low-cost carrier modeled on Ryanair, positioned around exceptionally low advertised fares, secondary airports, direct online booking, and extensive ancillary revenue.

• Air transportation · 2007

  Scheduled passenger flights

  Skybus operated scheduled point-to-point passenger flights, initially from Columbus and later from Greensboro and Portsmouth. Its network emphasized underserved city pairs and secondary airports rather than large, heavily congested gateways. By its final operating day, the airline served a network of 17 destinations across the continental United States.

• Airline ancillary revenue · 2007

  Ancillary services

  The fare structure separated the base ticket from many travel components. Customers paid additional charges for checked baggage, priority seating, food, drinks, pillows, and other onboard items. Skybus also generated revenue from aircraft advertising and merchandise sales, making ancillary income central to its ultra-low-cost positioning.

• 2007Ten-dollar fare promotion

  United States

  Skybus marketed a limited number of seats on each flight at fares starting around $10 one way, before taxes and airport charges. The promotion made the airline's low-price proposition highly visible while encouraging customers to purchase optional services separately.

  Outcome. The fare strategy generated attention and differentiated Skybus, but it did not prevent route instability and the eventual shutdown.

  Source

• 2008

  Cease all airline operationsStrategy

  Background

  Skybus cited the weakening economy and rising fuel prices after months of operational disruption and route reductions.

  Action taken

  The company announced on April 4 that all flights would end after the final scheduled departures on April 5.

  Aftermath

  The airline became defunct after less than a year of passenger operations.

  Source

• 2007

  Adopt a secondary-airport, ultra-low-cost modelStrategy

  Background

  Skybus sought to minimize airport, sales, staffing, and operating costs while avoiding direct competition on many routes.

  Action taken

  It used smaller airports, online-only ticket sales, apron boarding, standardized equipment, and extensive fees for optional services.

  Aftermath

  The approach produced very low advertised fares but also exposed the company to airport-access tradeoffs, customer-service challenges, and dependence on ancillary revenue.

  Source

• 2007

  Expand to Greensboro as a second focus cityStrategy

  Background

  Skybus pursued rapid growth beyond its original Columbus-centered plan.

  Action taken

  The airline opened a focus city at Piedmont Triad International Airport and added multiple routes.

  Aftermath

  The network expanded, but subsequent route reductions showed that some growth decisions were difficult to sustain as fuel prices increased.

  Source

• 2007

  Reduce West Coast and weaker-route exposureGeneration change

  Background

  Skybus reassessed routes after fuel prices rose and some destinations failed to fit its cost model.

  Action taken

  It cut Bellingham and San Diego, reduced Burbank frequency, and later announced the end of most West Coast service.

  Aftermath

  The carrier concentrated more heavily on shorter routes and selected focus cities, but continued operating pressure culminated in the 2008 shutdown.

  Source

1. 1Skybus Airlinesen.wikipedia.org