South Charleston native vows he's 'not going to give up' on plans at Yeager for low-fare Jet America
The shutdown on Friday of Columbus-based Skybus Airlines, founded by South Charleston native John Weikle, might spell doom for Jet America, the low-cost startup Weikle planned to launch at Charleston's Yeager Airport next year.
The shutdown on Friday of Columbus-based Skybus Airlines, founded by South Charleston native John Weikle, might spell doom for Jet America, the low-cost startup Weikle planned to launch at Charleston's Yeager Airport next year.
Skybus announced its closure, effective today, on Friday night. The airline, which offered fares as low as $10 on 80 daily flights to 15 cities, began operating on May 22, 2007. The airline employed about 450 workers in Columbus and its second base of operations in Greensboro, N.C.
According to a message posted on the airline's Web site, "Skybus struggled to overcome the combination of rising jet fuel costs and a slowing economic environment. These two issues proved to be insurmountable for a new carrier."
The airline also announced that its financial condition was so dire that its board of directors "felt it had no choice but to cease operations."
The hasty shutdown of Skybus after less than one year of operation "is like throwing a wet blanket on plans for Jet America," said Yeager Airport Director Rick Atkinson. "I don't see how we could go forward with this model."
Last month, the Charleston and Central West Virginia convention and visitors bureaus each pledged $500,000 to help Weikle get Jet America's $40 million fundraising effort off the ground.
"There's no way we would have done this if I didn't think Skybus was successful," said Kanawha County Commission President Kent Carper, who serves on both CVB boards.
However, Weikle said Skybus's demise had nothing to do with the carrier's business model.
"The business model is certainly sound, even with higher fuel prices," he said. "It probably was the execution of the business plan."
Weikle, who left Skybus's management team shortly after the airline's first flight, said he was "shocked. ... unbelievably surprised" at Friday's closure announcement.
"I feel so badly for the employees, my daughter being one of them," he said.
Despite concerns from investors, though, Weikle said he is committed to keeping Jet America alive.
The shutdown on Friday of Columbus-based Skybus Airlines, founded by South Charleston native John Weikle, might spell doom for Jet America, the low-cost startup Weikle planned to launch at Charleston's Yeager Airport next year.
Skybus announced its closure, effective today, on Friday night. The airline, which offered fares as low as $10 on 80 daily flights to 15 cities, began operating on May 22, 2007. The airline employed about 450 workers in Columbus and its second base of operations in Greensboro, N.C.
According to a message posted on the airline's Web site, "Skybus struggled to overcome the combination of rising jet fuel costs and a slowing economic environment. These two issues proved to be insurmountable for a new carrier."
The airline also announced that its financial condition was so dire that its board of directors "felt it had no choice but to cease operations."
The hasty shutdown of Skybus after less than one year of operation "is like throwing a wet blanket on plans for Jet America," said Yeager Airport Director Rick Atkinson. "I don't see how we could go forward with this model."
Last month, the Charleston and Central West Virginia convention and visitors bureaus each pledged $500,000 to help Weikle get Jet America's $40 million fundraising effort off the ground.
"There's no way we would have done this if I didn't think Skybus was successful," said Kanawha County Commission President Kent Carper, who serves on both CVB boards.
However, Weikle said Skybus's demise had nothing to do with the carrier's business model.
"The business model is certainly sound, even with higher fuel prices," he said. "It probably was the execution of the business plan."
Weikle, who left Skybus's management team shortly after the airline's first flight, said he was "shocked. ... unbelievably surprised" at Friday's closure announcement.
"I feel so badly for the employees, my daughter being one of them," he said.
Despite concerns from investors, though, Weikle said he is committed to keeping Jet America alive.
"I am not going to give up," he said. "Airlines are here to stay. In good years and bad years, people still fly. Charleston has the potential."
However, if he succeeds in launching Jet America, he is going to do things differently.
"This time, I won't give it over for someone else to run," he said. "Founder-run companies do better."
Even though the Skybus closure came as a surprise, Carper said he'd already had some questions about Jet America.
"I had grave concerns - the market conditions, the cost of fuel," he said. "Some people wear rosy glasses and some people don't."
Based on his concerns and those of Gov. Joe Manchin, Carper earlier this week froze $350,000 of the seed capital pledged to the Jet America project by the two CVBs. Carper said funds contributed by the CVBs will be safe if the Jet America project folds.
While Skybus' closing has no direct financial connection to Jet America, "it is something we are going to have to take a look at," said Matt Ballard, president of the Charleston Area Alliance, which had agreed to contribute up to $200,000 in seed money to get the airline off the ground. "We are going to watch it for the next few days."
Skybus was at least the fourth U.S. airline this week to announce a shutdown in operations. Honolulu-based Aloha Airlines, Minneapolis carrier Champion Air, and the Indianapolis-based low-cost carrier ATA each cited soaring fuel costs in shutdown announcements earlier in the week.
"Unfortunately, our business model is no longer viable in a world of $110-a-barrel oil, a struggling economy and rapidly changing demand for our services," Champion President and CEO Lee Steele said in announcing his airline's closure.
"Fuel costs have everything to do with the problem the airlines are facing," said Atkinson. "The airlines can't afford to operate on $110 oil, and the passengers are spending what used to be their discretionary travel money on $4 gasoline."
"All airlines are impacted by the high fuel costs," said Ballard. "When is the federal government going to step in and take the rein?"
To contact staff writers Rick Steelhammer or Sarah K. Winn, use e-mail or call 348-5100.
Post a comment