April 04, 2008

Skybus is Dead

It kind of scared me when the founder resigned a couple weeks back. Add them to the list:
  • Skybus
  • ATA
  • PanAm
  • Aloha
  • Festival (never happened)
  • DJ Air (never happened)
  • SkyValue
  • Hooters
  • Independence
  • TransMeridian
  • SouthEast

It looks like Allegiant may be the only survivor from the 2nd tiered carriers and what they have accomplished only becomes that more impressive. The only other survivors without much track history are:

  • Myrtle Beach Direct
  • Southern Skyways

Based on the success that Westover had, I wonder if they will be able to attract Allegiant?

5 comments:

Anonymous said...

I heard on radio news last night at 1000pm that skybus has folded their hand.............isn't that old news????

Sorry i cannot keep up with the airline failures....we had ATA earlier thsi week....and was there another too? did we have 3 in less than a week????

Hasnt there been all kinds of excess capacity in airline bizz......esp. since 9-11.........after which I recall seeing pics of ooodles of comm. jets parked on dessert landing strips out west??????

Anonymous said...

Jahn,
RE: "Hasnt there been all kinds of excess capacity in airline bizz......esp. since 9-11"

No. The industry is not struggling due to a lack of passengers (i.e. overcapacity) nor are fares too low vs. the rest of the world.


The industry is struggling b/c of fuel prices. Sure....taking out some "small fry" capacity never hurts the abilitiy for the survivors to raise prices to cover fuel costs...but fares are near all-time highs already.


The survivors will be the legacy airlines that really arent allowed to fail unless they screw up big time (i.e. Eastern's demise through severe labor strife, etc.). These carriers are more inefficient than Skybus, yet they will survive and continue to pass on a hidden tax to US citizens through the higher airfares they charge to cover their inefficient, ill-managed businesses.

Anonymous said...

above post was by Roger

Anonymous said...

Roger if they all have to buy fuel........then is it poss. to say fuel has done them in?

Granted over the short run some may have hedged their fuels costs better than others...........but over the long, I would assume that fuels costs for all airlines are quite consistent from carrier to carrier......excepting of course newer vs older planes ....the newer being more fuel efficient????.....and I am guessing the older arilines have more of the older less fuel efficient planes????

Anonymous said...

Agreed. Fuel is killing every single one of them. But the majors have fairly good cash reserves.

CAL and AMR would be the first to go to Ch. 11 and that would happen early '09 at current fuel prices.

It is likely, however, that the gov't will intervene before then or consolidation will occur with additional financin for the new entity(s).

Roger