Skybus Officially Files for Bankruptcy, Owes $100 Million
Company Owes $100 Million to Creditors
COLUMBUS, Ohio (AP) - Skybus Airlines is in bankruptcy, becoming the third airline in less than three weeks to fail.
According to the Columbus Dispatch, filings in a U.S. Bankruptcy Court in the state of Delaware show that Skybus Airlines owes its creditors as much as $100 million.
Skybus spokesman Bob Tenenbaum says the low-cost carrier filed papers in U.S. Bankruptcy Court in Delaware Saturday night. The airline announced on Friday night that it was shutting down operations and filing for bankruptcy.
According to several reports, Skybus owes over $50 million dollars to creditors. The airline company 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 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.
COLUMBUS, Ohio (AP) - Skybus Airlines is in bankruptcy, becoming the third airline in less than three weeks to fail.
According to the Columbus Dispatch, filings in a U.S. Bankruptcy Court in the state of Delaware show that Skybus Airlines owes its creditors as much as $100 million.
Skybus spokesman Bob Tenenbaum says the low-cost carrier filed papers in U.S. Bankruptcy Court in Delaware Saturday night. The airline announced on Friday night that it was shutting down operations and filing for bankruptcy.
According to several reports, Skybus owes over $50 million dollars to creditors. The airline company 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 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.
posted by BP News Bureau | 1:48 PM
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