news-record.com

NEWS

Advertisement | Advertise with Us

Skybus owes creditors at least $50 million

Monday, April 7, 2008
(Updated Friday, June 6 - 2:11 pm)

Bankrupt Skybus Airlines owes $13.5 million to its top 20 unsecured creditors — companies who lent money to the airline without collateral — and at least $50 million overall after filing for bankruptcy protection under Chapter 11 of U.S. Bankruptcy Code.

Skybus lists assets of between $100 million and $500 million and more than 200 creditors, according to court records available today.

It owes the most money to its fuel supplier, World Fuel Management, $8.5 million and to the maker of its planes, Airbus North America, $1.9 million.

Skybus owes $200,000 to the Columbus Regional Airport Authority at its home base, and $130,000 to Piedmont Triad Airport Authority. It recently opened a hub at Piedmont Triad International Airport.

Skybus declared bankruptcy and ceased operations Friday night and Saturday, leaving hundreds of passengers stranded throughout its system.

The low-cost carrier filed papers in U.S. Bankruptcy Court in Delaware Saturday night, a company spokesman said. Skybus was known for its $10 fares and a la carte, pay-per-service flying. Like other airlines, it has struggled with rising fuel prices and a slowing economy. The Columbus, Ohio-based airline declared bankruptcy less than a year after beginning service.

Skybus is the third airline in three weeks to fail. Aloha Airlines went bankrupt on March 20 and ATA Airlines followed last week.

Contact Dick Barron at 373-7371 or dick.barron@news-record.com

Accompanying Photos

The Associated Press (Associated Press)

Photo Caption: Low-cost carrier Skybus stopped flying and filed for bankruptcy Saturday.

eMail Updates

Advertisement | Advertise with Us

Featured Ads

Search

Advertisement | Advertise with Us
Advertisement | Advertise with Us
Advertisement | Advertise with Us

News & Record Network Sites

Triad Weather

  • Current Condition: FAIR
  • Current Temperature: 58°
  • UV Idx: 3
  • Forecast High/Low: H: 60° L: 36°

User Tools

  • Social Networking
  • RSS
  • Share
  • Sign in to MyNR

Search