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There are now at least three or four Skybus threads. It may be a good time to merge them and put in an appropriate forum.
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Originally Posted by chrisny2
(Post 7270991)
Some tidbits:
Skybus will have at least 10 seats at $10 o/w fare on EVERY flight. Flights should start in May. Planes will be A319s. They will do CMH-XXX-CMH-XXX-CMH-XXX etc. They plan to have the shortest daily time on the ground of any airline worldwide. The planes will have Boeing-width seats on the 7" wider Airbus plane. The extra 7" will be put in the aisle to allow ppl to pass each other on boarding and deplaning. There will be no jetbridges and boarding will be through 2 doors. Skybus plans a 25 minute ground time. There will be no assigned seats. There will be no call center. All reservations will be internet based, check-in will be via kiosks. Flight attendants will clean the planes. Food and beverage will be sold onboard by Flight Attendants who work on commission. Skybus is following Ryanair's business model. It will fly to alternate airports (BUR, for example) and will avoid any airports with expensive landing fees and long taxi times (e.g. ORD, JFK, LGA, EWR, LAX.) |
Columbus has the Nations best Oktoberfest, or so it says according to travel magazines and top 10 oktoberfests
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Originally Posted by dietcoke
(Post 7642423)
whilst I do not know anything about Skybus I can tell you from experience that you will absolutely not turn a 319 in 25 minutes
Yes, and it rains here as well (of course ! ) and we have wheelchair pax here too. And there are a minimum number of groundcrew, who are usually handling agent staff rather than direct employees (even if they have been given the airline uniform to wear that day). Incidentally, in the time it takes many airports to manoeuvre a jetbridge up to the aircraft, these two airlines have probably got most of the passengers off already. |
If you buy two separate point-to-point tickets to get from coast to coast via CMH, and the first flight operates late into CMH causing you to miss the second, will they reaccommodate you? They're all "Don't be late. We'll leave without you." What if Skybus itself makes you late?
I guess you could call them up for rebooking... oh, that's right. |
Originally Posted by WHBM
(Post 7643004)
Do come to the UK where both Easyjet and Ryanair do their turnrounds in 20-25 minutes all day long, and have done for years; Easy A319s have 156 seats, Ryanair's 737s have 189 seats.
Yes, and it rains here as well (of course ! ) and we have wheelchair pax here too. And there are a minimum number of groundcrew, who are usually handling agent staff rather than direct employees (even if they have been given the airline uniform to wear that day). Incidentally, in the time it takes many airports to manoeuvre a jetbridge up to the aircraft, these two airlines have probably got most of the passengers off already. |
There seems to be a lot of skybus haters in this forum. :)
I'm biased, but I hope they succeed. I agree that on the revenue side it will be tough. You can only sell so much advertising space, drinks, trip insurance, snacks, etc. On the cost side, they will definitely have an advantage over the legacy carriers in terms of labor, slotting fees, reservation agents, customer service, maintenance (new fleet and only one type of aircfraft), etc. One of the things that might give them a chance is the fact that they are creating a new customer segment for their product. In addition to taking leisure travellers away from other cariers, they are targeting people who normally wouldn't do a weekend vacation or visit family/friends, etc. due to the cost. I also believe that they will eventually fly point to point instead of connecting through CMH. They only received a handful of planes from their first complete order, so when they take full delivery, hopefully we'll see more routes. I do agree that it will be ugly when there are delays/cancellations and everyone is trying to rebook new flights as they have no 800 number. But I guess that is the risk one is taking by purchasing dirt cheap fares. I think expectations have clearly been set so people should know what they are in for. Just my .02 |
Originally Posted by jayb5
(Post 7644740)
There seems to be a lot of skybus haters in this forum. :) ...
I think what concerns so many FTers is the idea that other carriers will lower their already low standards of customer service in response to the competition. That hardly seems likely. Ryanair certainly competes with the likes of BA and other traditional carriers, but other carriers did not match Ryanair's service approach. I think it would be great for all of us if the carriers started to distinguish themselves. As it stands, there is not a world of difference between the best Economy Plus seat on United, and a middle seat on Southwest. I'd like to see more variety. |
Originally Posted by jayb5
(Post 7644740)
There seems to be a lot of skybus haters in this forum. :)
It's just that the math doesn't work here. I went through it in an earlier post. It is IMPOSSIBLE to make money offering $10 and $50 airfares in the United States. It's a business model with no hope of success. |
Originally Posted by iahphx
(Post 7640071)
There are 10 seats per flight at 10 bucks. If you can snag one of those, God bless you. It will obviously be "a deal." A deal Skybus will lose money on (I assume they're doing it for promo reasons).
Once those seats are sold, the fares -- at least to the West Coast -- seem to jump to $50 each way. Certainly a deal, but not much better than the type of "junk fares" we see every day on the mileage run board. And it's not like they plan to offer a lot of $50 fares, either -- they couldn't, nobody could make money at that price. Even the most efficient low cost carriers are going to have a CASM (cost per available seat mile) of about 8 cents these days (Southwest's this quarter was 9 cents, JetBlue 8.5 cents, and AirTran 9.5 cents). So flying you 1500 miles (say to the West Coast from CMH) is going to cost them about $120. For every one-way fare below that, they have to sell a fare above that, so each $10 fare has to be off-set by a $330 fare + tax -- assuming EVERY seat is sold! How many people are going to pay $330 each way to fly SkyBus? What about $190 + tax (to compensate for the more plentiful $50 fares)? Seems doubtful to me. Ryanair is a shopping system that happens to fly people. Most of their money is made off of selling incidentals that only happen when you buy the ticket. Look at it like this. Assume you buy a ticket that Skybus breaks even on for the flight part of your trip. Then you check a bag for $5 and assume Skybus gets $4 profit, buy priority boarding $10, pure profit, buy a soda and snack for $4, Skybus gets $2 profit, book a hotel via their website $5 commission/profit, book a rental car via their website $5 commission/profit. These numbers can add up pretty quickly based on my example, assuming Skybus breaks even with the ticket they just made close to $26 profit from this passenger. Now assuming that thier fares average out to them breaking even across the whole plane on a flight and all of their passengers average about $26 in additional charges they made $3,744 on that flight. Not too shabby by any airlines standards. Granted their are overhead costs and HQ staff has to be paid etc etc but that $3,744 across the whole system can add up pretty quickly. |
Originally Posted by GWU ESIA STUDENT
(Post 7645343)
...NK down in FLL is using this exact same model which works very well for Ryanair.
Ryanair is a shopping system that happens to fly people. Most of their money is made off of selling incidentals that only happen when you buy the ticket. ... Scheduled passenger revenues increased by 27% to Euros: 1,433.4m due to a combination of increased passenger volumes on existing routes, the successful launch of new bases at Liverpool, Shannon, East Midlands, Pisa and Cork and a 1% increase in average fares. Ancillary revenues increased by 36% to Euros: 259.2m, a faster growth rate than passenger volumes, reflecting a strong performance in non-flight scheduled revenues (primarily car hire, hotels and travel insurance), on board sales and other ancillary products. Ancillary revenues continue to grow at a significantly faster rate than passenger volumes. http://www.ryanair.com/site/about/in...nualreport.pdf So, while this 259m euros isn't most of Ryanair's revenues, it is most of its operating profit. |
Originally Posted by GWU ESIA STUDENT
(Post 7645343)
You are missing the point of their pricing structure; of course Skybus will lose money on $10 and possibly even $50 fares. They will make that money up with baggage fees, priority boarding fees and (most likely) the selling of any and everything possible at 30,000 feet. Money also gets made on the comissions they get from hotels, attractions, rental car reservations etc etc. NK down in FLL is using this exact same model which works very well for Ryanair.
Ryanair is a shopping system that happens to fly people. Most of their money is made off of selling incidentals that only happen when you buy the ticket. Look at it like this. Assume you buy a ticket that Skybus breaks even on for the flight part of your trip. Then you check a bag for $5 and assume Skybus gets $4 profit, buy priority boarding $10, pure profit, buy a soda and snack for $4, Skybus gets $2 profit, book a hotel via their website $5 commission/profit, book a rental car via their website $5 commission/profit. These numbers can add up pretty quickly based on my example, assuming Skybus breaks even with the ticket they just made close to $26 profit from this passenger. Now assuming that thier fares average out to them breaking even across the whole plane on a flight and all of their passengers average about $26 in additional charges they made $3,744 on that flight. Not too shabby by any airlines standards. Granted their are overhead costs and HQ staff has to be paid etc etc but that $3,744 across the whole system can add up pretty quickly. I know some of the European carriers make some money booking hotels on their websites, but the market for that in the US will be very small. It's a very mature market, and I see little reason to believe SkyBus pax will shift their hotel bookings to Skybus from the established players. |
Originally Posted by iahphx
(Post 7645116)
It's not "hate" -- I'd love to see a new innovative US airline (although, in the current crowded environment, I really can't imagine why anyone would put their own money into launching a new domestic carrier).
It's just that the math doesn't work here. I went through it in an earlier post. It is IMPOSSIBLE to make money offering $10 and $50 airfares in the United States. It's a business model with no hope of success. |
SkyBus is apparently also involved in less-than-candid timeshare sales on their website.
http://www.airliners.net/discussions....main/3377886/ This may be "yuckier" than I thought. |
Originally Posted by winodj
(Post 7645618)
Spirit Airlines doesn't seem to think that'll work either. That's why they're selling $6 and $69 airfares. They're following the same business model and they have a lot of longish flights too, maybe not CMH to BLI, but Guatemala City to FLL, for example.
I'm not sure Spirit will be successful in their current "unbundling" strategy, but their odds are exponentially higher than Skybus'. They are a "real" airline with a "real" business strategy. |
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