Apr-25-2007

Skybus offering $10 flights from Oakland

(topic overview)
CONTENTS:

COLUMBUS, Ohio - Skybus Airlines, which will begin flying out of Port Columbus International Airport next month, announced its routes Tuesday. (More...)
The Columbus airline, which will start flying May 22, is using a low-fare strategy that includes offering $10 fares for at least 10 seats on every flight. (More...)
If the $10 fares are gone quickly, the airline will try to add some flights for $30, $40 or $50, Gile said. (More...)
To check two bags, it will cost $5. (More...)
Skybus will also fly on large jets — the Airbus A319 — appointed with 156 leather seats. (More...)
You'll have to go to the Skybus Web site to land the dramatically discounted airfare, the rate is very much subject to availability, and neither taxes nor fees are included. (More...)
Several others e-mailed The Dispatch with similar stories. (More...)
Hodge expects the airline will attract a lot of B.C. customers. (More...)

REFERENCES

COLUMBUS, Ohio - Skybus Airlines, which will begin flying out of Port Columbus International Airport next month, announced its routes Tuesday. The airline started selling tickets on its Web site at 6 a.m. to eight nonstop destinations, 10TV's Maureen Kocot reported. People who were quick enough to book fares might have been able to take advantage of the airline's promise to sell at least 10 seats on each of its flights for $10, before standard taxes and fees. [1] Richmond is getting a third low-fare carrier Skybus Airlines -- starting May 23 with one daily round-trip flight to Columbus, Ohio. Airport officials said they expect to draw travelers from as far away as Washington, D.C., to take advantage of the ultra-low discount fares.[2]

Skybus Airlines will begin flying May 29th from P-T-I to Columbus with flights that offer at least ten seats on every flight for just ten dollars. Airline spokesman Bob Tenenbaum said the company is using smaller airports not only because they are often cheaper to use but also because they are easier to enter and leave.[3] Even the cheap $10 fares will be subject to extra fees of $10.40, which includes taxes and airport fees, Gile said. It's a mystery to at least one airline analyst how and why Skybus would offer permanent $10 flights, even on just a few seats. "It can be done, but it's silly to offer on every flight," said Michael Roach, a principal at Roach and Sbarra in San Francisco, an airline consultancy.[4]

Diffenderffer supports building a three-mile rail link from Salisbury Mills to Stewart to bring travelers from the New York metro area. "We think that's true, and certainly our fares will be low enough, but also, there are five million people right around that area," he said. "So, we think it's just a great airport for us to be considering." Skybus could start a real airfare war at Stewart with its plan to sell 10 seats for $10 each on every flight.[5] The company's Web site lists one-way fares from $30 to $80 for flights where $10 tickets are sold out. To keep costs low, Skybus sells tickets only through its Web site and passengers will be charged for things such as in-flight food and beverages.[6] The $20 round-trip fares offered on the Skybus.com Web site aren't a gimmick, Skybus officials said. "These fares -- starting with at least 10 seats at $10 on every flight -- will always be offered," said Bill Diffenderffer, Skybus CEO, in a statement announcing the service.[7] "Travelers who visit our Web site will find outrageously low fares on nonstop flights to major markets and to cities that are underserved from Columbus," Skybus CEO Bill Diffenderffer said in the release. "They are not 'promotional' fares that will go away in a couple of weeks. These are the everyday low fares we promised when we began working to build Skybus."[8]

The airline plans to make money by selling onboard refreshments, including bottled water and potato chips. On its Web site, Skybus warns: "Oh, and don't sneak food onboard unless you brought enough for the whole plane." Skybus' low-fare competitors at Port Columbus said they are not overly concerned by the upstart's rock-bottom fares.[9]

Discount airline Skybus is selling $10 one-way tickets on new nonstop flights from Columbus, Ohio, to a slew of cities.[10] Skybus Airlines — which offers a few $10 tickets on every flight — will soon see if Triad travelers are ready to trade a little convenience for a lot of savings.[11] The airline's fares will also be as low as possible, a feat Skybus plans to pull off in part through what Tenenbaum called "movie-theater pricing." That is to say, you only have to pay for your ticket, and you have to buy popcorn only if you wish. Skybus will offer very low fares for its tickets, while charging passengers for services ranging from food and beverages to priority boarding. Like other low-cost airlines, Skybus will not have reserved seating on its aircraft.[12]

At a news conference yesterday morning to officially announce routes and fares, Skybus CEO Bill Diffenderffer said the airline plans to add seven more routes from Columbus within the next several weeks, bringing the total to 15 routes before the end of the year.[9] "Beginning, passengers can buy airline tickets for less than the cost of a tank of gas," said Bill Diffenderffer, chief executive of Skybus.[4] Tickets on the flights will start as low as $10 each way, with the airline guaranteeing at least 10 seats on each flight will be available at that cost.[13] A savvy traveler could fly to Columbus in the evening, spend the night, then take the airline's flight to Burbank, near Los Angeles, the next day, and pay $20. That's even cheaper than $138 and nearly three days on a Greyhound. Once those seats are sold at www.skybus.com — no telephone reservations — it promises that other seats won't cost more than half the average cost for any competing airline.[11] The airline, which tags itself as a next-generation low-fare airline, will serve an initial eight destinations, including secondary airports outside of Los Angeles, Boston and Seattle from Columbus for as low as $10 per way.[14] There will be two flights daily to Los Angeles and Boston and one flight daily to the other cities. The airline, offered millions in state incentives to base its operations in Columbus, said customers in Ohio wanted more nonstop options to major metropolitan areas.[6]

Susan Schneider added that offering just a handful of ultra-low fares can backfire on an airline. "We get calls all the time from people asking why they can't get a fare they saw promoted," said Schneider. "It can have the unintended consequence of coming across as a bait-and-switch." Bexley Travel manager Sandy Niklaus, though, sees strong demand for well-priced, nonstop service to top markets such as Los Angeles and Fort Lauderdale.[15]

The Columbus airline, which will start flying May 22, is using a low-fare strategy that includes offering $10 fares for at least 10 seats on every flight. [9] Authority officials said the accord, which will be finalized shortly, was "real good news" for the airport. "It puts us back into the business of having a regular airline here," said Dick Green, the PDA's executive director. Columbus-based Skybus is now in the process of receiving its certification from the Federal Aviation Administration. The airline should make its first flight from Columbus to Portsmouth sometime in mid to late May, the airline said.[12] "Our strategy is to 'decomplexify' airline operations in ways that keep costs down while making flying as simple and convenient as possible for passengers." Earlier this month, Nationwide Insurance of Columbus unveiled the first of Skybus' "co-branded" aircraft, with Nationwide branding messages on the plane's exterior and throughout the interior of the aircraft.[16] After the $10 fares are sold out, Skybus officials have said fliers can expect the remaining fares to cost about half the current norm to the same destinations from Columbus.[15]

Look for lots of it on Skybus flights inside the airplane and out. That helps keep ticket costs low.[10] As one of the airline's many moves to keep costs low, tickets will be available only on the company's Web site, www.skybus.com.[15] Hodge said the airline will keep costs in check through various means, including the use of less congested "secondary" airports, which charge lower fees and allow for quicker aircraft turnaround times.[17] The airline uses Airbus A319 full-size jets, which the airline says are some of the most fuel-efficient in the industry, which helps Skybus keep costs down.[18] Michael Hodge, the airline's chief financial officer, said Skybus will be the lowest-cost operator in the North American airline industry. "We'll be similar to Ryanair in that we're very cost conscious and will unbundle services so people only pay for the things they want," he said in an interview.[17]

As a low-cost air carrier, Skybus' business plan revolves around keeping costs as low as possible.[12] The city used to be a hub airport once-upon-a-time, when America West used CMH as an Eastern launch pad. Skybus will fly Airbus A319s on all its routes. The carrier has plans to acquire more than 70 aircraft over the next five years, and will lease additional airplanes as it builds its fleet this year and next.[10] Skybus will generally will fly into secondary, "efficient" airports in a bid to avoid the congestion of other airlines' hub operations, Diffenderffer said. "Our planes will spend more time in the air and less time on the ground," he said.[19] "A lot of people who usually don't fly will fly with us," said Ken Gile, Skybus president and the former director of flight operations for discount king Southwest Airlines.[4]

New-entrant Skybus sells $10 seats - really Your guide to cheap airline tickets & hot airfare deals.[10] Fledgling startup Skybus, scheduled to begin flying this spring, began selling tickets on Tuesday for as little as $10 one-way.[20]

The carrier is providing no phone numbers for bookings or customer service. Skybus will charge $5 each for checked bags and $50 for those who bring a third suitcase. Another point of discussion on Internet chat boards was Skybus' "no-outside-food" policy.[9]

If the $10 fares are gone quickly, the airline will try to add some flights for $30, $40 or $50, Gile said. [4] All fares are also subject to fees and taxes applied to all airline tickets by the federal government and local airports.[16] The company bills itself as offering $10 tickets on every flight. That price does not include taxes and fees up to $7.90 and a $2.50 Sept. 11 security fee.[21] For more information on the tickets, go to www.skybus.com. Those $10 fares don't include taxes. This material may not be published, broadcast, rewritten, or redistributed.[22]

To check two bags, it will cost $5. There's no first class, but passengers can pay an extra $10 if they want to board ahead of all other passengers. [11] Carry-on bags will be free but it will cost $5 per bag to check in your first two pieces of luggage, and $50 a bag after that. Hodge said Bellingham will serve both the Seattle and Vancouver markets, which are both "fantastic destinations." "We thought we might have to educate people about what they can do if they fly out there, but they already know," he said.[17]

Skybus will also fly on large jets — the Airbus A319 — appointed with 156 leather seats. It won't offer any free drinks or snacks. [11] The $10 price is not an introductory offer either. It will always be offered, though it is sold on a first-come, first-served basis, Diffenderffer said.[4]

You'll have to go to the Skybus Web site to land the dramatically discounted airfare, the rate is very much subject to availability, and neither taxes nor fees are included. [10] One big factor was the airport's proximity to the Boston market. A second was the PDA's willingness to waive its fees for the first two years of Skybus' operations.[12]

Several others e-mailed The Dispatch with similar stories. Skybus spokesman Bob Tenenbaum said he was not aware of any lengthy problems. He said there were some "glitches" throughout the day, and they were dealt with quickly. The Skybus way of doing business will take some getting used to for those accustomed to traditional airline policies. [9] Skybus plans to follow the style of European budget airline Ryanair by charging extra for checked bags, priority seating and all on-board refreshments.[15]

Hodge expects the airline will attract a lot of B.C. customers. "It can be quite expensive to fly from Canadian airports, so we have every reason to think people will make the drive down if the savings are worth it," he said. [17]

REFERENCES

1. WBNS-10TV, Central Ohio's News Leader - News - New Airline Announces Destinations, Sales
2. TimesDispatch.com | Third low-fare airline for Richmond
3. foxcarolina.com - News, Weather, Video - Greenville, Spartanburg, Asheville, Anderson | Airlines offer new service at 3 NC airports
4. Inside Bay Area - Skybus offering $10 flights from Oakland
5. Covering the Hudson to the Catskills!
6. Skybus Begins Booking $10 Flights | Chron.com - Houston Chronicle
7. $10 flights from Bellingham to Ohio planned - Puget Sound Business Journal (Seattle):
8. Skybus will offer KC-Columbus service - Kansas City Business Journal:
9. The Columbus Dispatch : Skybus' cheap-ticket sales soar
10. New-entrant Skybus sells $10 seats - really
11. News-Record.com - Greensboro, North Carolina: News - Local - Greensboro: If airfare's $10, don't be late
12. Union Leader - Portsmouth lands new air-carrier service - Tuesday, Apr. 24, 2007
13. Discount carrier adding PTI-to-Columbus route - The Business Journal of the Greater Triad Area:
14. Skybus To Launch Low-Cost Columbus, Ohio, Service
15. The Columbus Dispatch : Skybus starts selling tickets today, with some one-way fares for $10
16. Skybus Airlines :: Skybus Announces First Destinations;
17. Canada is among low-cost airline targets
18. WRIC Richmond News and Weather - New Low-Fare Airline Coming To Richmond
19. Skybus to launch service May 22 - Business First of Columbus:
20. Skybus begins booking $10 flights
21. Skybus plans Fort Lauderdale service - for $10 - South Florida Business Journal:
22. abc7.com: New Airline Offering 10 Flights

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Skybus offering $10 flights from Oakland

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