Skybus Airlines shuts down operations
April 5th, 2008 | by admin |CHICAGO, April 5 (Reuters) - Skybus Airlines Inc, alow-cost U.S. carrier, has shut down its operations due torising jet fuel costs and the weak economy, the company said.
The shutdown began on Saturday and comes less than a yearafter the Columbus, Ohio-based company began flying. Skybus,which operated flights to 15 U.S. cities, announced itsdecision to shut down on its Web site.
The company became the third U.S. airline to shut down itsoperations this week, following similar moves by ATA AirlinesInc and Hawaii-based Aloha Airlines.
Big airlines are beginning to shrink to cope withtoughening operating conditions. On March 18, Delta Air LinesInc (DAL.N: Quote, Profile, Research) unveiled plans to cut 2,000 jobs and scale backflights.
The combination of rising fuel costs and the weakeningeconomy has stalled the airline industry’s modest recovery fromthe 2001-2006 downturn. Oil prices CLc1, which are directlyrelated to jet fuel costs, remain above $100 a barrel.
Skybus, which offered blocks of $10 seats on its flights,had tried to boost its revenue by selling advertising space onthe fuselage of its aircraft. It also offered commissions toflight attendants who sold food and merchandise on board. (Reporting by Mark Weinraub; Editing by Eric Beech)
