news-record.com

GREENSBORO — Skybus Airlines announced today that it plans to cut five daily flights out of Piedmont Triad International Airport as the low-fare carrier wrestles with rising oil prices and focuses on more profitable routes.

The cuts mean Skybus will discontinue flights from PTI to the New Orleans area and cut back to one flight a day to the New York, Chicago, Philadelphia and Fort Myers, Fla., areas.

Effective April 15, Skybus will have 11 flights a day out of PTI.

"Virtually all of these changes are being forced by the continuing rise in the cost of oil," said Bob Tenenbaum, a Skybus spokesman. "It's creating serious issues for everybody in this industry."

Tenenbaum added: "This is absolutely no reflection on Skybus' commitment to the Triad."

He said the reduction in flights would not affect Skybus' employment at PTI, which totals about 80.

PTI officials said they don't see Skybus' actions as a setback.

"To me this is a good business move for them rather than a bad omen for us," said Henry Isaacson, chairman of the Piedmont Triad Airport Authority. "They want to strengthen themselves rather than end up in a weakened position. ... This is a new baby. I think the baby has a cold, not pneumonia."

Skybus officials said the airline would also cut flights out of Columbus, Ohio, the carrier's headquarters.

Tenenbaum said Skybus had hoped to add a third base this year — in addition to Columbus and PTI — but that move probably will be pushed back to 2009. In addition, he said, the airline had anticipated doubling in size in over the next two years.

Now, the airline expects growth of about 50 percent each year.

"We are still talking about significant growth over the next two years," Tenenbaum said. "Part of that growth will be at PTI."

He also said he doesn't believe the cuts in flights will affect the airline's efforts to reach its incentives goals.

Last year, the airport authority agreed to spend up to $52 million in construction and marketing efforts to support Skybus.

The carrier must attract at least 500,000 new passengers a year before the authority will make good on some major parts of the deal.

Airport officials said Tuesday that Skybus and Allegiant Air, another low-fare carrier, have had an effect at PTI, where both started flying last year.

Isaacson said passenger totals increased from 67,666 in February 2007 to 95,935 last month, a jump of almost 42 percent.

"Their business model is working well at our airport," Isaacson said. "I think their business model is ultralow fares and I think they are doing all they can to maintain that."

Skybus offers at least 10 seats on every flight at $10 each.

Tenenbaum said the airline has worked not to increase fares as some of the country's leading carriers have done.

He said Skybus has increased some fees, however. For example, the cost to change a reservation has increased from $40 to $60.

Contact Donald W. Patterson at 373-7027 or don.patterson@news-record.com