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October 16, 2007
Skybus Cuts Three Western Flights in Spring Schedule Overhaul
Skybus cut three of its Western flights and two of its routes in a bid to cut costs due to an increase in fuel prices. Skybus's Bellingham flight and one of its two daily Burbank flights will be dropped January 6, while the San Diego flight will be dropped March 7. While the airline hasn't announced any new routes to replace the three flights to Bellingham, San Diego, and Burbank, it is likely that these will be announced within the next few weeks, and it's also likely that they will include some new international destinations, such as Cancun and the Bahamas. With this schedule shift, Skybus will also add an additional seasonal flight between Columbus and Punta Gorda, Florida and a second daily flight between Columbus and Greensboro, North Carolina. These flight adjustments are a direct response to higher fuel costs. Many analysts were surprised when Skybus initially launched service with three West Coast routes, in part because low-cost carriers are able to keep costs down by flying shorter distances, especially given the expensive cost of fuel. However, Skybus decided to take a chance on longer distance routes. But given the current climate with record high fuel costs, maintaining these routes simply isn't feasible for the company. However, that's not to say that these routes will never return, but these routes will be increasingly difficult for Skybus to sustain with satisfactory yields. Bellingham and San Diego have proved to be solid Skybus markets, and there's no reason why Skybus won't return to those cities in the next year or so, and perhaps sooner. It's even possible that Bellingham could get flights linking it to a potential West Coast focus city, such as Burbank, but that's still very unclear at this moment.
One of the interesting components of this move has been that Skybus is adding an additional flight to Greensboro, which Skybus claims has been their most successful market thus far (proving this skeptic wrong, I suppose). Greensboro is also being considered for a new Skybus focus city, with flights likely to be added between the city and several Florida destinations, similar to Skybus's new focus city in Portsmouth, New Hampshire. Government and private organizations in Greensboro are taking decisive action to try to land the focus city expansion, and is looking to provide Skybus with new incentives to launch additional flights. The Forsyth County Tourism Development Authority recently approved $100,000 in incentives for Skybus as part of a package totaled at approximately $650,000. It's too difficult at this point to determine whether Greensboro will be Skybus' choice, though that's the way it appears to be headed. While Skybus has had tremendous success in Greensboro, I would caution the carrier against being too hasty with its expansion plans. Columbus is one thing, given that that region suffers from relatively high fares. But Greensboro-area travelers have other low-fare options for Florida travel (though from Raleigh-Durham), and these options offer more comfort and amenities. Skybus could choose a market like Burbank instead for its new focus city, but that is situated farther from Columbus and most of Skybus's destinations. It could offer flights to passengers traveling to Oakland or Bellingham, but that seems insufficient for a new focus city, though it's certainly not out of the question. With travelers facing ever-higher fares, Skybus has entered the market at the right time to stimulate demand. But whether the carrier will find the same success with a new batch of markets remains a very open question.
October 16, 2007 in Low Cost Carriers, Skybus Airlines | Permalink
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