Skybus Airlines - Shutdown and Bankruptcy

Shutdown and Bankruptcy

Soon after the departures of several top managers, on April 4, 2008, Skybus announced they were shutting down all flight operations. The airline also said it would seek Chapter 11 bankruptcy protection. A statement on its website regarding the shutdown said that "Skybus struggled to overcome the combination of rising jet fuel costs and a slowing economic environment. These two issues proved to be insurmountable for a new carrier." Skybus was the fourth United States-based airline to shut down or announce future plans to shut down the week of March 31, 2008, following Aloha Airlines' passenger operations, ATA Airlines and charter airline Champion Air. At the time of the shutdown, Skybus employed about 450 people, mostly in the Columbus, Ohio, area. Almost all were immediately laid off. Passengers were left stranded on round trips.

Port Columbus did not face too harsh of losses from the airline's shutdown, because the vacant space allowed existing airlines at Port Columbus to "Spread out" and add more service. With the addition of a nonstop flight from Columbus to Los Angeles operated by Delta Air Lines, Columbus now had non-stop flights to all of the major airline hubs in the United States. Their vacancy also made room for AirTran Airways.