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skybus; facts and commments..lessons

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climbhappy

ex pat
Joined
Aug 11, 2002
Posts
2,159
aisde from the remarks that do nothing but incense, there are simple truths about business and some stark realitites about this failed experiment:

1) at the end , greensboro traffic, their second focus city remianed unchanged last month from a year ago. about 85,000 pax. Diffenderfer swore they would increase GSO traffic by 150%. though only three months into it, the numbers weren't there.
2) you cannot be the "lowest cost provider in an industry where costs are rising. it makes no ecomomic or common sense

lesson: I would have never launched a business at the tail end of a boom cycle. the dot com bubble burst at the end of the 90's. this boom , made up of housing values has ended.
past data shows the airline industry will take 24 months to rebound from a bust.

3) the SX approach was so radical and unorthodox, though tried in europe, it may never have caught on even if oil wasn't so high.
in america, women still shave their underarms. so some things will never "catch on" over here.

BEST of all. Sx will help the industry, by being the tail end of a pricing strategy that isn't compatible with what the cost to provide the service add up to.

This shakeout will help by reducing capacity, increasing ticket prices which increase revenues. Industry consolidation has to take place and maybe this help pilot wages come up in the end, which is really what drew the ire of everyone in the first place when it came to skybus.

these guys aren't to be reviled , but maybe helped and told "now you know" best of luck!
 
This shakeout will help by reducing capacity, increasing ticket prices which increase revenues. Industry consolidation has to take place and maybe this help pilot wages come up in the end, which is really what drew the ire of everyone in the first place when it came to skybus.

these guys aren't to be reviled , but maybe helped and told "now you know" best of luck!

Skybus' downfall will have NO affect on the industry. They didn't even account for 1/10 of one percent of the market share. I would be willing to bet that 95% of Americans never even heard of Skybus.
 
that could be said, but any capacity reduction is still a reduction. i think the greensboro traffic shows that there was a huge drop off of pax flying mainline carriers due to the slowdown. SX enplanements skewed the number since it was flat with no increase.
 
Skybus' downfall will have NO affect on the industry. They didn't even account for 1/10 of one percent of the market share. I would be willing to bet that 95% of Americans never even heard of Skybus.

I bet that every negotiating group that flew airbus or comparable airplanes had to deal with management throwing skybus wages at them saying this is what we have to compete with, you are overpaid.
 
Skybus' downfall will have NO affect on the industry. They didn't even account for 1/10 of one percent of the market share. I would be willing to bet that 95% of Americans never even heard of Skybus.

It has very little to do with Skybus's market share. When they set ticket prices it ripples through the entire industry who are attempting to match those prices! Indy Air's footprint was not much bigger but the wreaked havoc on ticket prices up and down the east coast, back in the day, because everybody dropped ticket prices to match.
 
here's a fact about skybus:

"Pilots" who whore themselves out at those wages, lured by the promise to get rich on "stock options" and the platitude that "things will get better" deserve what they got.
 
here's a fact about skybus:

"Pilots" who whore themselves out at those wages, lured by the promise to get rich on "stock options" and the platitude that "things will get better" deserve what they got.

They're lower than whores...they're scabs.
They lower the bar by accepting flying jobs for very low wages knowing that their fellow pilots are fighting for better pay on that same equipment. They're taking a job from another pilot who would normally only do it for at least twice of what the Skybus pilots were getting paid. I feel sorry for the innocent families of those idiots, because they have nothing to do with it, but those whores got exactly what they deserved.
 
this coming from a guy who supports mccain! he is anti pilot as they come! suprising for a former pilot!
 
They're lower than whores...they're scabs.
They lower the bar by accepting flying jobs for very low wages knowing that their fellow pilots are fighting for better pay on that same equipment. They're taking a job from another pilot who would normally only do it for at least twice of what the Skybus pilots were getting paid. I feel sorry for the innocent families of those idiots, because they have nothing to do with it, but those whores got exactly what they deserved.


Hold your horses there for a minute. You must be a youngster in this industry with that kind of uneducated opinion/statement. A scab is something entirely different.
 
Maybe not a scab in the traditional sense that you're thinking, but definitely scab-like.
 


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Skybus owes creditors up to $100 million, bankruptcy filing shows

Monday, April 7, 2008 12:01 PM



THE COLUMBUS DISPATCH
Skybus Airlines owes its creditors as much as $100 million, according to its filing in U.S. Bankruptcy Court in the state of Delaware.
The Columbus-based airline announced Friday evening that it was going out of business effective Saturday, closing less than a year since it started flying at Port Columbus.
World Fuel Management of Chicago is listed as the largest creditor, owed $8.5 million, according to the filing, dated Saturday. Airbus North America is owed $1.9 million, the filing says.
Other major creditors include: American Express, owed $600,000; Airport Terminal Services, $300,000; SourceSpeed, $250,000; and the Columbus Regional Airport Authority, $200,000.
Skybus said in the filing that the creditor list is at least 200 names long.
The airline listed its liabilities as greater than $50 million to as much as $100 million. It pegged its assets as greater than $100 million to $500 million.
 
They had $160 million in star-up capital IIRC...They now owe $100 million on top of that.

How are those stock options working out, you naive, greedy snakes?

At least their "pilots" got some good water out of the deal. And some money (but not enough to live on).

Adios, MF.
 
i don't think they used all 160 mil. that money is a total pledged usually. if the company meets certain benchmarks, the venture capital firm or investment banker will make another distribution.
it was reported that they had depleted their capital reserves by a third or roughly 53 million.

they lost 16 million in Q3 of 07. figure another 10 to 15 on Q4 and in Q1 08 with cost rising, even if revenues increased, cost probably rose with it, I'd peg it at 15 to 18 million.

and to think they were worried about water.... it blows my mind... why not worry about a concept gone bad and let's change it to succeed.
 
this coming from a guy who supports mccain! he is anti pilot as they come! suprising for a former pilot!


You think Obama's gonna be any better? He's a neo-socialist.

Yes, McCain has made life a little harder for commercial pilots, that being said, he's head and shoulders the only choice for president.
 
You think Obama's gonna be any better? He's a neo-socialist.

Yes, McCain has made life a little harder for commercial pilots, that being said, he's head and shoulders the only choice for president.


wow! I dont even know where to begin when you post this comment on a pilot forum!

Sure...arsonists make life a little harder for firefighters, but hey...that being said. What a moron.
 
This is going to take this thread off topic but I have a Question for anyone who is willing to answerer. I have seen a few comments that McCain had made life more difficult for airline pilots. What Exactly has he Done?
 
This is going to take this thread off topic but I have a Question for anyone who is willing to answerer. I have seen a few comments that McCain had made life more difficult for airline pilots. What Exactly has he Done?

Tried to pass a bill that implemented baseball style arbitration on transportation employees. I'm to lazy to look it up, but a search should find more information.
 
Not trying to flame here, but how marketable will Skybus pilots be in the market? Will that be a huge black mark on someone's resume for the 121 world? Where could they likely go to get hired (beyond G0Jet$)? Any thoughts?
 

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