Skybus ends service to San Diego, Bellingham, reduces service to Burbank

[weasel_lips]

By Associated Press


BELLINGHAM, Wash. (AP) - High fuel prices are forcing Skybus Airlines to halt service to Bellingham, the airline said Tuesday.

The Columbus, Ohio-based carrier will fly its last Bellingham-Columbus run on Jan. 5. Travelers with tickets for later dates will get refunds.

"The price of fuel definitely is the thing that pushed it over the edge," airline spokesman Bob Tenenbaum said. "It's not something anybody anticipated. The passenger loads have been excellent."

Fuel costs are forcing Skybus, which began service here May 29, to change strategy. With just five aircraft, the company is concentrating on destinations in the East, closer to the Columbus hub, Tenenbaum said.

Skybus will also eliminate one of its two Columbus-Burbank, Calif., flights in January, and drop San Diego-Columbus service in March. Aircraft that had served those destinations will be used to expand Skybus service to North Carolina and Florida, he said.


Skybus started service last spring, garnering publicity with $10 fares available for the first 10 seats booked on each flight. While last-minute fares are considerably higher, Skybus ticket prices are generally well below other carriers. The airline captured more revenue with extra charges for assigned seats, checked bags and food and beverages.

Tenenbaum said Skybus is still growing, and could add West Coast destinations, including possibly Bellingham, as its fleet expands.

"There are no current plans to resume the service," he said. "But we would definitely not rule it out. The situation's going to change and the fleet's going to get bigger."

http://www.komotv.com/news/local/10587602.html

 

[Beetle007]

How can Skybus claim that these high fuel prices force them out of markets when other airlines can still do it profitably. The legacies are making money hand over fist despite the $90 barrels of oil. I know large airlines get a discount on oil but is it that much to make such a difference.

 

[hyperboy]

ska bus

No it's because sky bus sucks A$$!

 

[Joblu]

By Associated Press


BELLINGHAM, Wash. (AP) - High fuel prices are forcing Skybus Airlines to halt service to Bellingham, the airline said Tuesday.

The Columbus, Ohio-based carrier will fly its last Bellingham-Columbus run on Jan. 5. Travelers with tickets for later dates will get refunds.

"The price of fuel definitely is the thing that pushed it over the edge," airline spokesman Bob Tenenbaum said. "It's not something anybody anticipated. The passenger loads have been excellent."

Fuel costs are forcing Skybus, which began service here May 29, to change strategy. With just five aircraft, the company is concentrating on destinations in the East, closer to the Columbus hub, Tenenbaum said.

Skybus will also eliminate one of its two Columbus-Burbank, Calif., flights in January, and drop San Diego-Columbus service in March. Aircraft that had served those destinations will be used to expand Skybus service to North Carolina and Florida, he said.


Skybus started service last spring, garnering publicity with $10 fares available for the first 10 seats booked on each flight. While last-minute fares are considerably higher, Skybus ticket prices are generally well below other carriers. The airline captured more revenue with extra charges for assigned seats, checked bags and food and beverages.

Tenenbaum said Skybus is still growing, and could add West Coast destinations, including possibly Bellingham, as its fleet expands.

"There are no current plans to resume the service," he said. "But we would definitely not rule it out. The situation's going to change and the fleet's going to get bigger."

http://www.komotv.com/news/local/10587602.html

Yah ok man!! What cave did they come out of?

 

[JetFumes]

Yah ok man!! What cave did they come out of?

The passenger loads are excellent because the fares are so low, right! I've seen this movie before.

 

[climbhappy]

they can't make money with five airplanes period. most fleet cost analysises have always been done with a minimum of 20 planes. the legacies have hundreds of planes and flights to spread all those fixed costs, such as debt service and overhead.

with 5 planes they can't generate enough of a portion of each flight to apply to the debt,cost of benefits etc.

 

[bgaviator]

This is news that came out two weeks ago.
Do you honestly think other airlines always make profits on every one of their routes? If you consistantly make significant profit on a shorter route, you can continue to operate longer routes even at a loss if you're a big major airline.
And for the person that had to highlight in red the statement about oil being over $90/barrel.....why would anyone have expected oil to be where it is now? There was an analyst who said the real value of oil right now is only about $65/barrel.... for some strange reason we have a market that is driven on fears and speculations....why do we allow our market to be controlled that way? What are these fears and speculations? Do we have Nostradamus sitting on the stock exchange floor having visions? People need to stop thinking SX can do what the big boys can when they're just starting out.....why wouldn't you cut a money losing flight when you're just getting started and trying to show to your investors you can make a profit? Why not re-allocate those assets to routes that will make more money? Did anyone watch that CNBC special on American Airlines....didn't the flight from New York to Los Angeles only make about $100-200 profit by the time it was all said and done.....and that aircraft is tied up for half of the day, when it could have done multiple shorter hops? I'm not an economics or business major, but even I can see the simple logic in things.

 

[Joblu]

And for the person that had to highlight in red the statement about oil being over $90/barrel.....why would anyone have expected oil to be where it is now? There was an analyst who said the real value of oil right now is only about $65/barrel.... for some strange reason we have a market that is driven on fears and speculations.....

There has been an upward trend for quite some time based on what you have said so they did not see this? Or put in place any contingencies? Charging 10 bucks for a ticket when we are at war or tense relations with oil producing countries (which spawns that fear) doesn't seem like a viable strategy to me.

Funny that you mentioned that because I have a hard time understanding that as well. The price of oil may be worth one figure and fear, speculation or some Arab in Opec is feeling irregular drives the price up. As a result the oil companies walk away with record profits.

 

[samballs]

Is this not the same path that Fly I had right before they closed. They began to stop the long hauls and put the bus on the east coast. We can only hope SKYBUS will fail.

 

[ICAO]

Been there done that...

They are FULL of HOT AIR and LIES. Never see a single thing on paper about anything they have told to anyone..including there current employees. All Bull@^%$. Just wait oil is close to $95. THEY WILL DEFFFFFFER deliveries..or cancel orders. Explain and sell that to your investors & Stock Market. Winter is just around the corner..cant wait.