Skybus shuts down abruptly, third scheduled U.S. airline to fold this week
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Late Friday, Skybus announced on its website that it would shut down by the end of the day. If you hold tickets on the discount airline for travel today (Saturday, April 5, 2008) or later, call your credit card company immediately and try to secure a refund.
I say “try,” because you may not be able to get your money back. If you booked tickets well in advance and you’ve already paid the bill, you may run into snags with your credit card company in getting a chargeback. You generally can dispute charges when a company fails to deliver the services it promised, but if you’ve paid your bill, your bank is far less likely to work on your behalf. Banks vary; call them. Now.
If you’re already halfway into an itinerary, you can try to get your ticket honored by another airline, but as Chris Elliott has pointed out after previous airline shutdowns, there’s no law requiring them to do so. If any other airline accepts a Skybus ticket, even with a surcharge, it’s as close to an act of charity as you’ll ever see from a for-profit enterprise.
So far, no statement has appeared on any of the major airlines’ websites to woo Skybus customers. Who would want to attract a cheapskate customer who only paid a measly $10 one-way fare, I guess. In contrast, you’ll see announcements of standby policy for stranded ATA and Aloha customers on airline websites like Northwest, US Airways and United. For example, ATA customers can fly standby (on a space-available basis… good luck) on US Airways for $100 per segment. Not truly “cheap,” but better than paying a walk-up fare to, say, get back to the U.S. mainland from Honolulu.
But back to Skybus: Their failure is a surprise, but only for its timing. The third scheduled airline this week to close its doors, after the much older Aloha and ATA. (I’m sorry, I don’t count the charter airline Champion Air, which also folded this week. Bad week for the industry.) High fuel prices and bad business models combined to create this week’s carnage.
I never flew Skybus, though I had been considering trying them out on a Greensboro-Chicago/Gary flight. I flew Aloha inter-island in 1994, which was pleasant, and I flew ATA in 2003, which was less than pleasant. (I swore never to fly ATA again after a miserable experience with their front-desk staff at Chicago/Midway, who refused to issue a boarding pass, even though I was at the gate more than 45 minutes before the flight. “You’ll never make it through security in time.” “I bet I can.” “Nope, you won’t. The next flight is in 7 hours. You’re on the standby list.” I’ve never been angrier at an airline employee.)
Taking three airlines out of commission is pulling a good chunk of supply from the market, especially to Hawaii, which will allow other airlines to raise fares. For the short term, these airline failures are bad news for all flyers, not just the folks who hold tickets on the defunct carriers.
But rest assured, much like lottery tickets always find a market, capital always seems to flow to start-up airlines, though it’s not overnight. Perhaps a Charleston, West Virginia based airline might be the next big thing. Or even a Louisiana-themed discount carrier named after gumbo.
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Skybus 1: How to contact Skybus
Here’s a thought: Skybus, the cheapskate startup airline mentioned
European-style ultra-discount airline 
