Skybus ends local air service

“The price of fuel definitely is the thing that pushed it over the edge,” Tenenbaum said. “It’s not something anybody anticipated. … The passenger loads have been excellent.”

But with fuel costs hitting stratospheric levels as crude oil prices do the same, Tenenbaum said Skybus had to change strategy. With just five aircraft, the company is shifting its resources to destinations in the East, closer to the Columbus hub.

“It’s far more profitable to run more short runs than it is to run one long run,” Tenenbaum said. “It’s a business decision.”

Skybus will also eliminate one of its two Columbus-Burbank, Calif., flights in January, and drop San Diego-Columbus service in March. Aircraft that had served those destinations will be used to expand Skybus service to North Carolina and Florida.

After several years of planning, Skybus started service last spring, stirring up a flurry of publicity with $10 fares available for the first 10 seats booked on each flight. While last-minute fares are considerably higher, Skybus ticket prices are generally well below other carriers. The airline captured more revenue with extra charges for assigned seats, checked bags and food and beverages.

The Port of Bellingham, operator of Bellingham International Airport, had expected Skybus flights to generate hundreds of thousands of dollars per year in parking and passenger fee revenue for the airport. But airport revenues have been climbing from other sources, as Allegiant Air added flights and Horizon Air added larger planes.

As of today, Skybus represents about 15 percent of the airport’s passenger volume, said Art Choat, port aviation director.

“It’s a chunk of our business, but it’s not devastating,” Choat said.

Plans for expanded parking and a larger terminal will stay on track, because the airport needs more room with or without Skybus, Choat said.

The departure of Skybus also frees terminal space that could be made available to another interested airline. The arrival of Skybus had left the airport with no more room for additional carriers. Two established airlines have expressed interest in serving Bellingham, and Choat said he will renew contacts with those airlines now that terminal space will become available.

And at this point, nobody is ruling out a Skybus return to Bellingham.

Choat said the airline was filling 80 to 90 percent of its seats here. Tenenbaum said Skybus is still growing, and it could return to the West Coast as its fleet of planes expands.

“There are no current plans to resume the service,” Tenenbaum said. “But we would definitely not rule it out. The situation’s going to change and the fleet’s going to get bigger.”

Tenenbaum said the company regrets the inconvenience for travelers who bought tickets on flights that won’t happen.

“It’s disappointing,” he said. “Nobody’s happy about it.”