http://query.nytimes.com/gst/fullpage.html?sec=travel&res=9F0CE1D61530F932A25754C0A965958260
Skybus, a fledgling no-frills charter service offering low fares between Florida and the Northeast, stopped flying June 29 amid conflicting reports over unpaid bills. Nevertheless, Skybus said it was grounded only temporarily and would resume service soon.
Because Skybus was a public charter and lacked approvals from the Government to operate its own flights, it hired another charter carrier to serve its routes. Its most recent carrier, Express One of Dallas, said it stopped flying for Skybus because it was owed more than $500,000 from the Fort Lauderdale-based company, which began operating last September, using Jet Expeditions. Skybus said it had not paid Express One because it was unable to collect more than $1 million in ticket revenues from CD Travel, an agency in Fort Lauderdale that handles its reservations and ticketing. CD officials said Skybus has received every dollar it was owed.
Skybus also said it was owed about $600,000 from processors of its credit card sales. A person familiar with the company's affairs said the processors were witholding payment because too many Skybus customers were charging back their Skybus tickets.
Meanwhile, the Department of Transportation is investigating Skybus's finances. The investigation would not block the charter from submitting a new prospectus for the Government to review, but that process typically requires 10 days. Skybus officials said they hoped to receive quicker approval, although none was imminent as of the beginning of this month.
Skybus was founded last year by roughly 100 investors, including former Pan Am, Eastern and Midway employees. Using four DC-9's, it offered service from Newark; Chicago; Worcester, Mass., and three Florida cities -- Fort Lauderdale, Orlando and St. Petersburg. Most one-way flights on Skybus cost between $99 and $119, but the passengers paid extra for meals, beverages and check-in baggage.
By ADAM BRYANT
Published: July 11, 1993