Another Airline Down - Skybus Closes

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Skybus Airlines has ceased operations. With ATA and Aloha Airlines, Skybus makes the third airline in a week (4 if you could charter airline Champion Air) that has succumbed to the economic pressures, particularly the high cost of jet fuel. Whose next?

Skybus Airlines will cease all operations effective Saturday, April 5.

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.

We deeply regret the impact this decision will have on our employees and their families, customers, vendors, suppliers, airport officials and others in the cities in which we have operated. Our financial condition is such that our Board of Directors felt it had no choice but to cease operations.

Passengers holding reservations for Skybus flights scheduled to depart on or after Saturday, April 5, 2008 should contact their credit card companies to arrange to apply for a refund. More information for customers and others will be made available on the Skybus web site (www.skybus.com) as it becomes available.

All flights for Friday, April 4 will be completed. Passengers holding reservations on flights for Friday, April 4 should check in for their flight at a Skybus kiosk at the airport instead of the Skybus website.

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ATA to Leave Chicago Midway

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I was saddened to see the news that ATA Airlines is pulling out of some of its commercial flights because of the high cost of fuel. Back when my kids were in Jr high we flew on ATA to Boston through Midway and our kids first flew alone on this route back from Boston. Midway is a much more manageable airport than O’Hare and ATA was a very nice low cost option at the time.

INDIANAPOLIS (AP) — Citing high fuel prices, ATA Airlines announced Thursday it will leave Chicago’s Midway Airport starting next month.
ATA will stop its domestic flights out of Midway on April 14 and its international flights to Mexico on June 7.

The decision will not affect its scheduled commercial flights to Hawaii from Oakland, Los Angeles, Phoenix and Las Vegas, spokesman Steve Forsyth said.

“This was a difficult decision, but the high cost of fuel has made it economically unfeasible to continue our low-fare service at Midway,” said Rob Binns, ATA’s chief commercial and planning officer, in a statement released Thursday. “We will redeploy our ATA aircraft in profitable charter service.”

April 3, 2008

I just read that ATA has now filed for bankruptcy under chapter 11.

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