Wednesday, March 22, 2006

Skybus Raises the Cash

It's done. We thought it was interesting that we had no comments on the Skybus profile we ran. The information in there was fairly unique. These guys will be just as big as Virgin, but have not attracted the same level of attention from industry insiders. They should. Obviously...we understand why they haven't attracted as much attention from industry outsiders.

We believe Skybus can be enormously successful, but we will grow very skeptical about the project if they do not change course in deciding to fly from Columbus as their first focus city and then go on to choose sparsely populated airports like Stewart, Barnes and/or Atlantic City as their subsequent F.C.s. There are far less risky options out there.

By they way...we have heard that there is yet another startup looking to fly from CMH.

9 Comments:

At 12:35 PM, Anonymous Anonymous said...

150 passenger aircraft....leasing, purchasing or subcontracting??

 
At 1:03 PM, Blogger Emerging Airlines said...

Using their own certificate. Everything we heard was that they were going Boeing....but just recently we heard Airbus, so we dont know what to believe. No word on the a/c financing partner. All the usual suspects (GECAS, ILFC, RBS if the a/c are new, SALE, ACG, etc.) will be fighting for the business.

 
At 2:36 PM, Anonymous Anonymous said...

From Columbus, 200 miles of driving puts a potential customer at the doorstep of many airports. Do they believe the big hubs in Cleveland and Cincinnati will get fewer customers and not attack aggresively?

 
At 2:44 PM, Anonymous Anonymous said...

I would assume they would be 737-700s or A320s right? At ATA we had 737-800s at 175 seats a single class configuration. It would be nice if they tapped another Ohio market too =)

 
At 3:04 PM, Blogger Emerging Airlines said...

200 miles from any market in the east produces big demo figures. So we are not impressed by the numbers Bill D was referring to. There are advantages and disadvantages...but we like a 30 miles radius best.

If I were Skybus, I'd worry most about what the possible response will be at CMH. DL has built up a focus city there and actually have more flexibility in bktcy to fight. Luckily for them, a CAL team (Haustein and Courtealiu, sp?) that is now leading planning at DL has never been aggressive in responding to comp threats. We'll see...

Don't expect WN to just give away the traffic.

CAL did not do anything when FL attacked them at CAK...so dont expect anything there.

 
At 3:05 PM, Blogger Emerging Airlines said...

Yes, the latest we heard were 319s. But again...we have been getting mixed messages on that recently.

 
At 3:34 PM, Blogger Ytown Fan said...

I think CMH is pretty good starting point, I mean it is the largest city and only growing major city in Ohio....but they could do better. They should try to grab at least 2-3 more cities in the state to grow the market. Such as CIN-TOL-CLE-CAK-YNG.... I mean all of those are 2-4 hours from CMH so it won't lose any passengers that way but compete with airlines like AirTran and Southwest for the niche markets.

 
At 6:25 PM, Anonymous Anonymous said...

CMH is not the wild card, it's Rickenbacker. These guys have too many power brokers backing them to fail. This is big picture stuff.

 
At 9:33 AM, Anonymous Anonymous said...

What about the East Coast? They won't go to Logan in Boston.Porsmouth,Worcester like Allegiant?

 

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