Per Bloomberg.com:
By Nancy KerchevalRead the full article here.
April 5 (Bloomberg) -- Skybus Airlines Inc., a U.S. low- fare carrier that started operations less than a year ago, stopped service today, the third airline to shut down this week as fuel costs soared and the economy slowed.
The closely held, Columbus, Ohio-based airline began offering service May 22 with some tickets as low as $10 for a four-hour flight. It will seek bankruptcy protection next week.
Aloha Airgroup Inc., a closely held Hawaiian airline that filed for bankruptcy protection, ended service April 1 when it couldn't find a buyer or financing to stay in business. ATA Airlines Inc., a Midwest carrier based in Indianapolis, shut down the following day when it sought bankruptcy protection, blaming its demise on high fuel prices and the loss of a contract for military charter flights.
"Nobody has a long-term viable business plan that can be sustained at these jet-fuel prices," said Darryl Jenkins, an airline consultant. "This is a killer category. We're probably going to see some more casualties out there."
About 90 percent of airline routes probably aren't profitable, Jenkins said. ``What do you do in a situation like that?'' [...].
Skybus's collapse leaves financial stake-holders, (including Wall Street investment banking house Morgan Stanley,) holding the bag for a cool $100 million, including state and city funding and incentives.
And there's even more chirpy economic news from Bloomberg:
Bankruptcies Jump 30% in March, Led by Housing-Bust States
Don't let the cat get your tongues.
