Skybus halts operations, files Chapter 11 bankruptcy

By Caroline Salls

Pittsburgh, April 7 - Skybus Airlines, Inc. filed Chapter 11 bankruptcy Saturday in the U.S. Bankruptcy Court for the District of Delaware after it ceased all operations.

According to a company news release, 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 release said.

The company said its financial condition left its board of directors with no choice but to cease operations.

According to court documents, the company has $100 million to $500 million in assets and $50 million to $100 million in debt.

Skybus' largest unsecured creditors include World Fuel Management, Chicago, with an $8.5 million trade debt claim and Airbus North America, Herndon, Va., with a $1.9 million disputed trade debt claim.

Passengers holding reservations for Skybus flights scheduled to depart on or after April 5 were instructed to contact their credit card companies to apply for a refund.

Skybus was a Columbus, Ohio-based airline. Its Chapter 11 case number is 08-10637.

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