Skybus goes Tango Uniform

[Rooster Cruiser]

http://ap.google.com/article/ALeqM5gvWEGmo54ofm7rRczCn4QsS0o7BQD8VRL91G0

I'm not surprised to see Skybus going Tango Uniform, but having three airlines shut down in the space of one week is not good for anyone in this industry...

Budget Airline Skybus Shutting Down
By MEGHAN BARR – 3 hours ago

COLUMBUS, Ohio (AP) — Low-cost carrier Skybus Airlines is shutting down Saturday and plans to file for bankruptcy protection next week, becoming the latest of the nation's airlines to fall because of rising fuel costs and a slowing economy.

The announcement Friday came less than a year after Skybus started up at Port Columbus International Airport, offering several $10 flights. The airline's situation worsened in recent weeks, said Skybus spokesman Bob Tenenbaum.

Fuel prices and the worsening economy combined to be insurmountable for a new carrier, said chief executive Michael Hodge.

"We deeply regret this decision, and the impact this will have on our employees and their families, our customers, our vendors and other partners, and the communities in which we have been operating," Hodge said in a statement.

The airline makes 74 daily flights to 15 U.S. cities, Tenenbaum said. It has about 350 employees in Columbus and 100 at a second hub at Piedmont-Triad International airport in Greensboro, N.C. Employees learned of the shutdown Friday night.

The final flight, taking off from Fort Lauderdale, Fla., was scheduled to touch down in Columbus just before 1 a.m. Saturday, Tenenbaum said.

He did not know how many passengers would be affected but said the company has flights scheduled through Sept. 2. They are eligible for a full refund.

The airline said that all flights were to be completed Friday and that it plans to file Monday for Chapter 11 bankruptcy protection.

Skybus is pulling the plug less than two weeks after CEO Bill Diffenderffer resigned to pursue a book-writing career. He was succeeded by Hodge, the company's chief financial officer for the past year.

Skybus has endured some bumps since it began flying May 22, 2007. Over two days during Christmas week, the airline canceled as many as a quarter of its flights because of problems with two of its planes. Recently, it has been dropping flights and destinations because of high fuel costs.

Skybus offered at least 10 seats for $10 on every flight. The airline advertised an a la carte, pay-per-service flying experience. Checking a bag cost $12 at the ticket counter, for instance, while boarding with the first group of passengers cost $15.

"Most airlines tell you you're not paying for baggage, but the fact is, you are paying for it," Tenenbaum said. "It's built into the cost."

The announcement adds to a string of bad news for airlines, which have been hurt by a slowing economy, high fuel prices and maintenance concerns.

ATA and Aloha Airlines both stopped flying this week after filing for bankruptcy protection. American, Southwest and Delta airlines have all had to cancel flights recently to address safety concerns about some of their aircraft.

[Mike]

what's going on this week?

it's just one after another after another . . . .


Well, as long as Roost-Air survives! 

[airtac]

HAH--Roost Air has been broke from day one but leaves only one direction and that's up

[Rooster Cruiser]

I missed this until today.  Charter airline Champion Air went Tango Uniform on March 31, the same day as Aloha.

http://www.startribune.com/business/17162021.html

Champion Air to go out of business in May
 
Glen Stubbe, Star Tribune

Julie Murphy, left, and Stephanie Hannigan, right, checked in for their Champion Air flight to Puerto Vallarta, Mexico, to celebrate their birthdays with five other women.

Old airplanes and high fuel costs are grounding Champion Air. The charter airline lost customers and failed to attract new investors.

By LIZ FEDOR, Star Tribune

Last update: March 31, 2008 - 10:45 PM

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Champion Air, a Bloomington-based charter carrier saddled with an aging and inefficient fleet of Boeing 727s, announced Monday that it will go out of business May 31.

About 550 employees will lose their jobs. Minnesotans are familiar with Champion because MLT Vacations contracted with Champion for many of its charter flights to leisure destinations.

But MLT, a subsidiary of Northwest Airlines, is phasing out its business with Champion this year. And so is the National Basketball Association, which had a multiyear contract with Champion to transport 13 teams.

MLT and the NBA provided the vast majority of Champion's revenue.

"Our business model is no longer viable in a world of $110 oil, a struggling economy and rapidly changing demand for services," Lee Steele, Champion's CEO, said Monday in a statement.

Champion's financial problems surfaced long before oil blasted above $100 a barrel. On Oct. 4, when oil was about $81 a barrel, Steele wrote to federal mediators to implore them to place pilot contract talks on hold. In a candid letter, Steele said that Champion needed investors to support a "renewed business plan with a modern fleet" or Champion risked ending operations in August.

Steele said Monday that Champion had failed to "attract new capital and new investors" so the carrier's executives and board decided "to wind up our operations in a responsible, deliberate manner."

Joe Battaglia, a Teamsters business agent, said: "We had every reason to believe that the flying would be at least through the end of the summer." The Teamsters have been attempting to negotiate their first contract for about 70 to 75 Champion mechanics, Battaglia said.

He added that his next order of business is focusing on negotiating exit packages for the mechanics and about 160 flight attendants and nine dispatchers who also are represented by the Teamsters.

Matt Marsh, chairman of Champion's branch of the Air Line Pilots Association (ALPA), said that pilots have been leaving the carrier steadily as its future became more uncertain. In June, 145 pilots were on the payroll, but that number has slipped to 75 pilots.

The announcement of Champion's demise comes as Honolulu-based Aloha Airlines said it would shut down its passenger operations after Monday's flights. Other carriers have been reducing capacity because they want to eliminate routes made unprofitable by high fuel costs.

In 2006, privately held Champion lost $488,000 on operating revenue of $155 million. It lost nearly $400,000 in the first half of 2007.

NWA replaces Champion

The flying that Champion was performing for Northwest's MLT subsidiary now will be done by Northwest.

Tammy Lee, a Northwest spokeswoman, said the shift was made for economic reasons. "With the high cost of fuel, the [three-engine] Champion 727s were too expensive to operate," Lee said Monday. "Further, with our restructuring and the lower operating costs that resulted from that, it was more economical to fly leisure travelers" on Northwest flights.

In addition, Northwest has secured a contract to fly NBA teams. In a January memo to pilots, Northwest said that seven Airbus A319s would be specially-configured for NBA flying.

In recent months, Lee said that Northwest has hired several Champion pilots based on their "quality and experience."

Champion got its start in 1993 as MGM Grand Air, offering air service to high-end customers, including corporate executives and actors. Dick Page, of Edina, acquired the operating certificate from MGM Grand Air and founded Champion.

"I'm very sad for the employees," Page, no longer associated with the airline, said Monday after learning of the planned shutdown. But he wasn't surprised. He said that "it's been public for quite some time that Champion has been struggling."

[Baradium]

As I said in another thread, thank God for Skybus going away.

Champion was owned by Northwest.  Northwest also bought the company that arranged their contracts.  Magically Champion's charters started going to Northwest.

The pilots knew this was coming for a year now, they've been drawing down for that long as they shifted their flying to NWA mainline.

I'd call this 5 airlines in a week. Delta and NWA also announced they've resumed merger talks.  I'm glad I got into a class when I did, but hope it was soon enough...

[chuckar101]

I thought the delta and northwest merger was done.  It was mostly just the union discussing seniority issues at this point.

[Baradium]

I thought the delta and northwest merger was done.  It was mostly just the union discussing seniority issues at this point.

Check when the last post was made.   

That's a development from the past month.

[chuckar101]

yeah its always the details that get me.