Skybus aircraft supplier asks court to force company to assume or reject purchase agreement by Oct. 31

By Caroline Salls

Pittsburgh, Sept. 16 - Skybus Airlines, Inc. aircraft supplier Airbus asked the U.S. Bankruptcy Court for the District of Delaware to force Skybus to decide whether to assume or reject its aircraft purchase agreement with Airbus by Oct. 31, according to a Monday court filing.

According to the motion, Skybus has been trying to sell its obligations under the aircraft purchase agreement for six months, but it has not been able to secure a bid for the agreement.

As a result, Airbus said Skybus will most likely be forced to reject the purchase agreement.

In addition, Airbus said Skybus did not make a pre-delivery payment due on Sept. 1.

"As each day passes, it will be more difficult for Airbus to place the 48 aircraft covered by the purchase agreement that Airbus is currently bound to hold for Skybus," Airbus said in the motion.

"As additional aircraft are put into production and others are moved further along in the process, Airbus will continue to be harmed by expending funds and other resources to produce aircraft customized for an airline that ceased operations six months ago and is liquidating."

A hearing is scheduled for Sept. 30.

Skybus was a Columbus, Ohio-based airline. The company ceased operations and filed for bankruptcy on April 5. Its Chapter 11 case number is 08-10637.

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