Skybus plans Chapter 11 filing on Monday

Washington DC
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Skybus Airlines says it officially plans to file for Chapter 11 bankruptcy protection on today, April 7 after ceasing operations on Friday 4 April.

The carrier is expected to name a fuel-service provider as its largest unsecured creditor when it makes the filing with the US Bankruptcy Court in Wilmington, Delaware.

Columbus, Ohio-based Skybus cited high fuel costs as a major driver of its decision to shut-down operations on Friday.

Skybus becomes the third US carrier to cease operations within a week, following the Thursday demise of ATA Airlines and the Sunday/Monday shutdown of Hawaii’s Aloha Airlines.

A fourth carrier, Minnesota-based Champion Air, says it will suspend its operations – all of them charter flights – in late May.

The widely reported chain of events has spurred new calls for a federal bill of rights for airline passengers, a campaign that took on new impetus after a federal court barred state legislation in New York.

Advocates say that they’ll push for a federal measure that includes provisions protecting passengers booked on carriers that suspend operations or go bankrupt.

Several airlines, including US Airways, JetBlue, and AirTran, have said they will accommodate stranded Skybus passengers.


Source: flightglobal.com's sister premium news site Air Transport Intelligence news

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