Skybus Airlines -- a startup carrier that hopes to begin flying by this spring
10-31-2006, 11:40 AM
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Skybus Airlines -- a startup carrier that hopes to begin flying by this spring
Just what we need.
http://blogs.usatoday.com/sky/skybus/index.html
Skybus Airlines -- a startup carrier that hopes to begin flying by this spring -- has signed a contract to buy 65 A-319 jets from Airbus, The Columbus Dispatch reports. The European aircraft manufacturer says the order is one of the biggest it has ever received from a U.S. start-up. "The two sides declined to discuss the value of the contract. Aircraft deals are highly negotiable, based on the size of the order, the exact configuration of the aircraft and how eager a company is to beat out the competition. Based on the A319's typical list price of more than $45 million, the deal would be valued at about $3 billion," the Dispatch writes. AFP put the value of the order at up to $3.9 billion. Skybus has said it plans to run a discount operation based on the model that has helped Ryanair become one of Europe's biggest carriers. The airline would use Columbus, Ohio, as its headquarters and primary base, according to most reports.
"I have to say, this is a huge order," Gary Doernhoeffer, a lecturer in aviation at Ohio State University, tells the Dispatch. "It took JetBlue five or six years to get to this level. If you want to go out and make a splash as a startup airline, this is the way to do it. This is like the cannonball off the high dive." Adds Doug Abbey of the airline consulting firm the Velocity Group: "This sends a signal to the market that they have ambitious plans. Clearly, they either see vast potential that either isn't being met, or is being met poorly." But, not all industry observers are convinced Skybus will be a success. "They might want to call the bankruptcy attorneys right now," says Mike Boyd of the Boyd Group. "If the rumors we're hearing about them flying to secondary cities and flying connecting flights through Columbus are true, I just don't see it. Overall, the market for regularly scheduled, low-cost service is picked clean. It’s not like Southwest is some bloated competitor. It's the wrong time to get into that business."
http://blogs.usatoday.com/sky/skybus/index.html
Skybus Airlines -- a startup carrier that hopes to begin flying by this spring -- has signed a contract to buy 65 A-319 jets from Airbus, The Columbus Dispatch reports. The European aircraft manufacturer says the order is one of the biggest it has ever received from a U.S. start-up. "The two sides declined to discuss the value of the contract. Aircraft deals are highly negotiable, based on the size of the order, the exact configuration of the aircraft and how eager a company is to beat out the competition. Based on the A319's typical list price of more than $45 million, the deal would be valued at about $3 billion," the Dispatch writes. AFP put the value of the order at up to $3.9 billion. Skybus has said it plans to run a discount operation based on the model that has helped Ryanair become one of Europe's biggest carriers. The airline would use Columbus, Ohio, as its headquarters and primary base, according to most reports.
"I have to say, this is a huge order," Gary Doernhoeffer, a lecturer in aviation at Ohio State University, tells the Dispatch. "It took JetBlue five or six years to get to this level. If you want to go out and make a splash as a startup airline, this is the way to do it. This is like the cannonball off the high dive." Adds Doug Abbey of the airline consulting firm the Velocity Group: "This sends a signal to the market that they have ambitious plans. Clearly, they either see vast potential that either isn't being met, or is being met poorly." But, not all industry observers are convinced Skybus will be a success. "They might want to call the bankruptcy attorneys right now," says Mike Boyd of the Boyd Group. "If the rumors we're hearing about them flying to secondary cities and flying connecting flights through Columbus are true, I just don't see it. Overall, the market for regularly scheduled, low-cost service is picked clean. It’s not like Southwest is some bloated competitor. It's the wrong time to get into that business."
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