SkyBus Airlines' Flying Rules

Discussion in 'Off-Topic Discussions' started by TEKMAN, Jun 26, 2007.

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  1. TEKMAN

    TEKMAN Semper Fi!

    I found this one, and I think it is hallarious when read the rules.

    "The Skybus Rules of Flying
    (A.K.A. How we keep our tickets so darn cheap.)
    1. Don’t pay for everyone else’s baggage.
    On Skybus, you pay only for what you check. The first two bags are 5 bucks apiece. After that, it’s $50 a bag (yeah, so pack smartly). Less baggage means faster turnaround and cheaper tickets. Fair deal?

    2. Hungry? Thirsty? Bring cash.
    Most people love our full cocktail bar and food menu, but if you’re not into that, it won’t cost you a penny. Why should your ticket cost include your neighbor’s dinner? That also goes for blankets and pillows–which, by the way, you get to keep if you buy. Oh, and don’t sneak food onboard unless you brought enough for the whole plane.

    3. Bring a book.
    We’re not big fans of fancy in-flight entertainment systems. So grab that best seller at the airport, or buy a Sudoku puzzle onboard if you’re feeling brainy. You’ll touch down before you know it.

    4. Don’t call us.
    We don’t have a phone number. Seriously. We’d love to chat, but those phone banks are expensive. And a good website like www.skybus.com is even more convenient.

    5. Don't be late. We won't wait.
    Please arrive no later than 30 minutes before takeoff, or we’ll leave without you. Really. By that time, there won’t even be anyone to check your bag. It’s nothing against you–we just have to keep our flights on time, or things get expensive in a hurry.

    6. Don’t expect an army of gate agents.
    You probably won’t see any agents at the gate until boarding time. Remain calm! Just print your boarding pass at www.skybus.com and relish in the savings.

    7. Yeah, we’ve got preferred seats. Sort of.
    There are no fancy reclining beds onboard, but you can pay 10 bucks extra to board our brand-new A319 airplanes before anyone else.

    8. Tickets are nonrefundable.
    Refunding a ticket costs everyone, so we don’t allow it. Of course, our tickets are so cheap it wouldn’t have been much of a refund anyway. If you need to change a ticket, your punishment for breaking a date with us is $40.

    9. Bigger is not better.
    Big airports can be a big pain. We choose less crowded and more convenient secondary airports for better punctuality and, of course, lower prices.

    10. No spontaneous dancing in the aisle.
    We realize you might be excited about paying a ridiculously low fare, but please refrain from any unbridled dancing onboard. This includes jumping for joy, disruptive cheering, and celebratory break dancing.

    "

    Ref: http://www.skybus.com
     
  2. John Bear

    John Bear Senior Member

    Wow. $100 round trip from Oakland to Columbus (the only place they fly nonstop). It's almost enough to make me want to go to Columbus.
     
  3. Chip

    Chip Administrator

    They have a very interesting model. Sort of a cross between Southwest Airlines and the old PeopleExpress from the 1970s and early 80s. Oh, and while it looks like they only fly to Columbus, their actual model is more like the old People Express one... every flight, no matter where you're going, goes through Columbus (with PeopleExpress, it was Newark.) The schedule is designed so you can fly from, for example, LA to Hartford pretty efficiently, you just have to book it in two steps.

    I've been reading about Skybus since before their launch. It's a bunch of former Southwest folks (as is Jet Blue) so they at least have some idea of how to run an efficient, successful operation. And I really like the idea that they have a few seats on almost every flight that are as cheap as 10 bucks if you book out far enough.

    The only thing that remains to be seen is what happens if they have, for example, weather delays that affect their entire system. Without a phone bank to handle those sort of calls, it will be interesting to see if their website is sophisticated enough to handle it.
     
  4. TEKMAN

    TEKMAN Semper Fi!

    That what I thought about the phone system. They don't even have a cell phone to contact when it comes to the emergency. At least ship their support or customer service to India. :) Therefore, they can help the passengers to solve their problems.
     
  5. Mundo

    Mundo New Member


    Not really a new business model. The hub-and-spoke system has been used by the airlines for as long as they’ve been around. All major (legacy) airlines have hubs, and all of their flights originate and terminate at one of their hubs. For example, if you live in El Paso and want to travel to Houston on American Airlines, you would have to go through Dallas (one of American’s hubs) before getting to Houston. On the other hand, if you fly Continental, you’ll be able to go directly to Houston (Continental’s hub).

    Low-cost-carriers (LCC’s) have been around for many years. The most successful of all has been Southwest because of its unique cost structure and its ability to grow at a rate of 5% to 10% per year since its creation.

    Skybus’ business model is banking on a very low cost structure that in my opinion is not sustainable. Typically, a new LCC receives a lot of financial incentives; they come from the aircraft manufacturer and the city and airport authorities who individually and collectively benefit from the new enterprise. However, when those incentives dry up, operating costs tend to rise and the airline is unable to control costs.

    JetBlue is a perfect example. When Jet Blue started, Airbus Industries offered them deferred payments as an incentive for selecting the Airbus 319/ 320. Labor cost was very low because salaries were below industry standard (as Skybus’ will). Now that JetBlue is making aircraft payments, facing high fuel prices, having to pay for maintenance (aircrafts are running out of warranty), and labor cost is increasing as employees work there longer, they are facing the same challenges as the other airlines.

    Even though Skybus is very well financed at the tune of about $233 million, one has to understand that in the airline business a mediocre management team can burn that money and more at the blink of an eye.

    Pepe
     
    Last edited by a moderator: Jul 1, 2007
  6. Mundo

    Mundo New Member


    Here is a recent article about Skybus, I guess their business model is not working quite as planned:

    Skybus in the red by $16 million
    Numbers not a surprise, airline says, but analysts are wary
    Tuesday, December 18, 2007 3:10 AM
    By Marla Matzer Rose


    THE COLUMBUS DISPATCH
    The first look at Skybus Airlines' financial performance shows that the no-frills Columbus startup lost $16 million during the three months ended Sept. 30.
    Company officials said they expected to lose money before becoming profitable sometime next year, while some analysts said this first look provided some troubling signs for the airline.
    Skybus' loss was based on operating revenue of $22 million, according to data released by the U.S. Department of Transportation yesterday. Skybus planes were 79 percent full on average during its first few months, a respectable number that put the airline sixteenth among the 96 reporting airlines.
    Skybus officials said the data represent only a few months when Skybus was just starting to fly and was ramping up for flights added after the end of September. The results were "in line" with expectations, said Bob Tenenbaum, airline spokesman.
    Still, two airline experts expressed concern that Skybus' yields -- an industry benchmark that is calculated by dividing passenger revenue by passenger miles -- have been very weak. In October, Skybus moved to address that by announcing that it would cut three of its five West Coast flights, since long-haul flights can't generate enough additional revenue to cover the added operating costs.
    Skybus' passenger yield for the quarter was 5.08 cents, compared with Southwest Airlines' 12.50 and the average 13.00 among major national carriers.
    "These are rock-bottom yields, especially in this age of skyrocketing fuel costs," said Joseph Schwieterman, a DePaul University professor and former pricing analyst for United Airlines.
    "In fairness to them, this is their first quarter, and the traffic growth has been quite impressive," Schwieterman continued. "But their costs may not allow selling so many seats at nominal prices. The (passenger numbers) are solid for a startup, but the publicity generated by the $10 fares isn't filling up the seats."
    A number of airlines this summer were reporting planes that were 85 percent to 90 percent full on average. Since its launch, Skybus has sold at least 10 seats on every flight for $10 -- a price that the airline admits doesn't turn a profit but that's designed to gain publicity and stimulate demand.
    Another industry consultant, Mike Boyd of the Evergreen, Colo.-based Boyd Group, called the yield numbers "appalling." Boyd, who has long said he didn't think the Skybus model would work, said yesterday that the figures prove his prediction.
    "This is just not a very good plan, but that doesn't mean they can't turn it around by scrapping the model," Boyd said. "There are examples of airlines that changed plans. Frontier Airlines is now highly successful, for example. (Skybus officials) need to see they've got a problem on their hands and fix it if they want to be around in a year."


    Pepe
     
  7. Ian Anderson

    Ian Anderson Active Member

    I fly EasyJet and Ryan in Europe - sometimes flights are free or just a few dollars have to pay tax though - check their websites - great deal. These guys sare zero frills airlines but flights are always full. I put up with inconvenience for low fares.
     
  8. TEKMAN

    TEKMAN Semper Fi!

    "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. "

    Wow! I didn't have a chance to fly as low as $10.00 per fare. I couldn't believe the company didn't last more than a year in the business.
     

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