Skybus looses 16 mil in first quarter

[relief tube]

guess there aren't enough people living in columbus that have been waiting years for a direct flight to Chicopee, Mass.

from usatoday.com.....

Skybus loses $16 million during first full quarter of flying​

Skybus lost $16 million on operating revenue of $22 million during the quarter ending Sept. 30, The Columbus (Ohio) Dispatch reports. The quarter was the carrier's first full quarter of flying. "Company officials said they expected to lose money before becoming profitable sometime next year, while some analysts said this first look provided some troubling signs for the airline," the paper writes. Skybus spokesman Bob Tenenbaum tells the Dispatch that the results were "in line" with the company's expectations and notes the quarter covered a period in which Skybus was just beginning to fly and was in the middle of its big initial growth spurt.
But while nearly all start-up airlines are expected to lose money during their first several quarters of operation, some industry observers expressed concern. The Dispatch writes it talked to "two airline experts (who) expressed concern that Skybus' yields -- an industry benchmark that is calculated by dividing passenger revenue by passenger miles -- have been very weak." Those yields have already prompted Skybus to act. In October, the airline scrapped three of its five West Coast flights -– flights where the longer distances did not allow the carrier to generate enough additional revenue to offset the increased fuel and other costs associated with the cross-country routes.
The Dispatch says Skybus' passenger yield for the quarter came in at 5.08 cents. By comparison, the Dispatch says Southwest's passenger yield is 12.5 cents while the major carriers average 13 cents. "These are rock-bottom yields, especially in this age of skyrocketing fuel costs," Joseph Schwieterman, a DePaul University professor and former pricing analyst for United Airlines, tells the Dispatch. Aviation consultant Mike Boyd also echoed concerns to the Dispatch, saying "this is just not a very good plan, but that doesn't mean they can't turn it around by scrapping the model."

Posted at 10:35 AM/ET, Dec 18, 2007​

 

[BOHICAgain]

guess there aren't enough people living in columbus that have been waiting years for a direct flight to Chicopee, Mass.​

from usatoday.com.....​

Skybus loses $16 million during first full quarter of flying​

Skybus lost $16 million on operating revenue of $22 million during the quarter ending Sept. 30, The Columbus (Ohio) Dispatch reports. The quarter was the carrier's first full quarter of flying. "Company officials said they expected to lose money before becoming profitable sometime next year, while some analysts said this first look provided some troubling signs for the airline," the paper writes. Skybus spokesman Bob Tenenbaum tells the Dispatch that the results were "in line" with the company's expectations and notes the quarter covered a period in which Skybus was just beginning to fly and was in the middle of its big initial growth spurt.
But while nearly all start-up airlines are expected to lose money during their first several quarters of operation, some industry observers expressed concern. The Dispatch writes it talked to "two airline experts (who) expressed concern that Skybus' yields -- an industry benchmark that is calculated by dividing passenger revenue by passenger miles -- have been very weak." Those yields have already prompted Skybus to act. In October, the airline scrapped three of its five West Coast flights -– flights where the longer distances did not allow the carrier to generate enough additional revenue to offset the increased fuel and other costs associated with the cross-country routes.
The Dispatch says Skybus' passenger yield for the quarter came in at 5.08 cents. By comparison, the Dispatch says Southwest's passenger yield is 12.5 cents while the major carriers average 13 cents. "These are rock-bottom yields, especially in this age of skyrocketing fuel costs," Joseph Schwieterman, a DePaul University professor and former pricing analyst for United Airlines, tells the Dispatch. Aviation consultant Mike Boyd also echoed concerns to the Dispatch, saying "this is just not a very good plan, but that doesn't mean they can't turn it around by scrapping the model."

Posted at 10:35 AM/ET, Dec 18, 2007​

and thats with paying stupid low wages to employees my guess if it they paid avarage wages and staffed it properly it would be a loss of like 18 to 20 million

 

[siucavflight]

This is great news!!

 

[8HourPilot]

Why is this posted in the regionals section? Regionals are paid better.

 

[Soverytired]

This is great news!!

<Sigh>

Well, I'm sure you'll like this as well:

http://www.contracostatimes.com/ci_7758707?source=rss&nclick_check=1

(Virgin America lost more than twice what Skybus did)


Remember though, startups ALWAYS lose money to begin with. Airline startup costs are HUGE. I'd say the verdict is still out on both startups in terms of long term viability.

The "respectable", "flightinfo approved" legacy carriers are going to start bleeding cash again when their sole remaining cash-cow of international flights start coming under attack by well run and well funded foreign airlines via open skies. The Luftansa/JetBlue alliance does not bode well for United, for example.

 

[Bushhatesyou]

Skybus is loose?

 

[Amish RakeFight]

I'd say the verdict is still out on both startups in terms of long term viability.

Virgin has deeper pockets and prior operating experience in comparison.

 

[_BravoWhiskey_]

Skybus is loose?

Yes, and they loost money

 

[labbats]

Skybus loses money. Too bad.

 

[BIGGOAT]

I hope they go out of business soon!


Goat

 

[Amish RakeFight]

My SkyBus VooDoo plane is working!!!!

 

[g-code]

<Sigh>

Well, I'm sure you'll like this as well:

http://www.contracostatimes.com/ci_7758707?source=rss&nclick_check=1

(Virgin America lost more than twice what Skybus did)


Remember though, startups ALWAYS lose money to begin with. Airline startup costs are HUGE. I'd say the verdict is still out on both startups in terms of long term viability.

The "respectable", "flightinfo approved" legacy carriers are going to start bleeding cash again when their sole remaining cash-cow of international flights start coming under attack by well run and well funded foreign airlines via open skies. The Luftansa/JetBlue alliance does not bode well for United, for example.

So how does the fact that United and Lufthansa pool revenue on their US-Germany flights bode for Jetblue then?

 

[Soverytired]

So how does the fact that United and Lufthansa pool revenue on their US-Germany flights bode for Jetblue then?

Glad you asked.

Read this speculative article, if you're interested. I found it fascinating. And considering GT at the big U doesn't know how to do anything except steal from employee's and run an airline into the ground, it's probably not a bad series of guesses:

http://crankyflier.com/2007/12/14/lufthansa-takes-jetblue-under-its-wings/

 

[Midnight Flyer]

They'll be out of business soon (my guess)
Honestly, I hate to see any fellow pilot out of work, but on the other hand, these Skybus pilots are the guys who selfishly accepted flying positions for way less than normal wages.

 

[Diesel]

hey but think about all the stock options!

 

[ratherbeflyen]

Read this speculative article, if you're interested. I found it fascinating.

http://crankyflier.com/2007/12/14/lufthansa-takes-jetblue-under-its-wings/

Yes, thats a very nice unbiased article written by "crankyflier," that is pure speculation.

 

[vectorvictor]

Virgin has deeper pockets and prior operating experience in comparison.

Not to mention a kick@## name and a cool owner with great hair.

 

[Jack Mehoff]

Maybe the Park Rangers up front should put up a donation box up like they do at the national forests.

I noticed their bilboards now say non stop to Richmond instead of Washington DC. I wonder how many ohio trailer kings walked off the stairs in RIC and got really confused.