Skybus Airlines quits operations

BURBANK — Less than a year after its first commercial flight landed in Burbank, Skybus Airlines has declared bankruptcy and halted all operations, citing increased fuel prices and a sluggish economy as the primary factors.

The airline announced its collapse late Friday, saying “rising jet fuel costs and a slowing economic environment . . . proved insurmountable for a new carrier. Our financial condition is such that our board of directors felt it had no choice but to cease operations.” On Monday, the Ohio-based Skybus filed for bankruptcy.

Skybus ran two round-trip flights from Bob Hope Airport, one from its Columbus hub and one to Greensboro, N.C. The company’s first commercial flight was May 22, 2007, into Burbank, airport spokesman Victor Gill said.

Due to the relatively short time it operated in Burbank, and its limited number of flights into the airport, the Burbank-Glendale- Pasadena Airport Authority does not stand to lose much revenue from the departure of Skybus. But its collapse has sent shock waves through the airline industry reeling from high fuel prices, Gill said.

“No question that the airline business is in a much less desirable place today than a year ago,” he said. “The cost of fuel has doubled. Airlines were paying $1.85 a gallon a year ago; now it’s about $3.65.

“This has certainly been the witching hour.”

Rising fuel prices tell only part of the story, said Don Brown, an airport commissioner representing Burbank.

“Because of the downturn in the economy, people aren’t flying as much,” he said. “Also, airlines have done away with a lot of perks they offered before. Airlines have to start taking care of customers a little better. More will go out of business. It’s a gut feeling.”

Similar problems were cited as the reason behind the collapse of Aloha Airlines and ATA Airlines, which announced last week that they would fold.

So far, Bob Hope Airport has largely weathered the aviation storm, but the swiftness with which airlines are shutting down has left some officials concerned, Brown said.

“We haven’t really been affected that much,” he said. “This is just now occurring. We could take a big hit, but we just don’t know. Nobody expected [Skybus] to file so soon. They were doing well here, but I guess overall they couldn’t handle it.

“Everybody is hoping the economy turns around. It’s a big circus.”

Friday ticket reservations were honored for Skybus passengers, but Saturday, customers around the country were rerouted on US Airways or Jet Blue flights. Few people showed up for Skybus flights Saturday at Bob Hope, Gill said.

Passengers holding reservations for Skybus flights scheduled to depart on or after Saturday should contact their credit card companies to apply for a refund, Skybus officials said.