Skybus Airlines folds

Breaking News: Skybus Airlines is ceasing all operations as of tomorrow, April 5, 2008. This is the fourth U.S.-based air carrier to shut down this week!

Skybus wasn't with us very long. The low-cost carrier, based in Columbus, OH, began flying in May of 2007 -- less than a year ago.

An announcement on the Skybus website says:

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.

Boom! Another one gone. The 450 Skybus employees -- pilots, flight attendants and ground staff -- are suddenly out of work, with virtually no notice.

One could say that there were clues that hinted at a coming Skybus bust. In an effort to reduce operating costs, the airline recently had discontinued some routes and had cut the number of flights on remaining routes. Earlier, Skybus had raised fees for checked bags, and for priority boarding by passengers.

Meanwhile, Skybus pilots had been in the process of unionizing. Less than a month ago, it had been reported that more than 80 percent of Skybus pilots were in favor of voting to join the International Brotherhood of Teamsters (IBT).

Then less than two weeks ago, on March 24, Skybus CEO Bill Diffenderffer abruptly resigned from the company. He was replaced by Skybus chief financial officer, Mike Hodge. During the past week, another Skybus executive, Bud Sittig, left as well. Mr. Sittig had been vice president of operations for Skybus. When he left, no replacement was named.

Skybus is expected to file for bankruptcy on Monday, April 7, 2008.

Skybus Airlines pilots want a union

Pilots at low-fare carrier Skybus Airlines appear to be on the verge of unionizing. A Columbus Dispatch article on the subject reports that more than 80 percent of Skybus pilots are in favor of voting to join the International Brotherhood of Teamsters (IBT).

Quoting from the Columbus Dispatch article:

Skybus, which was notified late last week of the action, said in a statement that the company is surprised to be facing a "union organizing effort when the airline industry is dealing with a slowing economy and oil prices" that are nearly $108 a barrel.

"We believe that a majority of our pilots will understand that we are better served focusing on building a start-up airline in a very competitive environment than we are going down a path that for other airlines has led to contentious labor-management issues," the statement said.

The starting salary for a Skybus captain is $65,000, while a less-senior first officer makes $30,000 to start. Pilots say those amounts are as much as 50 percent below industry standards, and Skybus pilots say the airline is not offering second-year pay increases. Still, Skybus has been able to attract experienced pilots with stock options and the opportunity to be home every night, because all planes return to either Columbus or the second base of Greensboro, N.C.

The article goes on to say that a spokeswoman for the airline division of the Teamsters "confirmed that the union has collected more than the required number of cards from Skybus pilots to proceed." More than 100 of the 120 Skybus pilots who are eligible to vote are said to have submitted cards favoring union membership. The next step would be a formal vote, supervised by the National Mediation Board. A simple majority vote in favor of joining the union would be required in order for the measure to be passed.