Piedmont Triad International Airport (GSO)

[Piedmont Airlines]

I have an idea - let's resurrect Piedmont Airlines!

I second that in a heartbeat! A family value airline like Piedmont that had their employees best interests in mind would be a great airline!

[JerseyBoy]

We all need to face the facts. With jet fuel reaching the ozone layer, along RDU and CLT so close by, PTI will never really

be a true passenger airport.

I agree, but, hopefully, with Honda Jet and FedEx more corporate employees for these companies will fly into PTI. This is also not counting the possible companies that will open up offices here to be close to these new operations.

[sean]

Gas isn't the only expense for airlines. There are many other cost factors, mostly regulatory. Why aren't you talking about those?

Or rather why aren't you talking about regulatory expenses? Illuminate us.

Do regulatory cost histories graph out like the cost histories for a barrel of oil? What did a barrel of oil cost in April of '07, what about April of '06, ... '05, ... '04 ... see the trend? Pretty shocking to consider that a barrel of oil was under $40 in 2004!

My take: Regulatory costs play a part, but relative to the 800lb gorilla (petro), its small potatoes. The whole global economy is wobbling because the supply of light, sweet crude is just barely keeping up with demand.

[hueion39]

Or rather why aren't you talking about regulatory expenses? Illuminate us.

My point is to illuminate that the gut reaction here is to blame oil and by extension President Bush.

[sean]

Even with all the bumbling by the country-club brat, the high cost of oil is just simple economics. 85 million barrels a day globally is the most we can pull out of the ground. Want to take a guess what the daily global demand is?

[intcvlcphlga]

My point is to illuminate that the gut reaction here is to blame oil and by extension President Bush.

It would seem in light of the recent safety inspections problems with Southwest, United, Delta and American, perhaps we need more regulatory authority to insure the safety of flying. Bush can be blamed for that too. The FAA is a joke and he has done nothing to upgrade the antiquated system that is largely relying on 1950s technology in an era where near-misses in the air and on the ground have become commonplace at most of our large airports. You have to wonder, if he put a horse lawyer in charge of FEMA, who's at the helm of the FAA and NTSB?

[RALNATIVE]

Even with all the bumbling by the country-club brat, the high cost of oil is just simple economics. 85 million barrels a day globally is the most we can pull out of the ground. Want to take a guess what the daily global demand is?

It's very easy to blame the cost of fuel when these types of situations occur, but the bottomline is that their business model was just not feasible long-term, especially given the changing economy. Other low cost carriers are also dealing with high fuel costs, but they are still managing to keep flying. It doesn't seem like Skybus took the appropriate steps in managing their cost structure given the current economy.

[JerseyBoy]

It's very easy to blame the cost of fuel when these types of situations occur, but the bottomline is that their business model was just not feasible long-term, especially given the changing economy. Other low cost carriers are also dealing with high fuel costs, but they are still managing to keep flying. It doesn't seem like Skybus took the appropriate steps in managing their cost structure given the current economy.

Exactly. They could have easily raised their fares about $30-40 and it still would have been reasonable. There is more to this story that the papers are not reporting. As I stated, I think they had a huge amount of unpaid bills (due to their business model) and it was easier to call it quits then to file Chapter 11.

[sean]

4 airlines turfed this week: Aloha, ATM, Champion, and Skybus. 4 bad business models? What are the odds?

[RALNATIVE]

4 airlines turfed this week: Aloha, ATM, Champion, and Skybus. 4 bad business models?

YES, YES, and YES!

This is not rocket science. If your total revenue from fares and other income are not sufficient to cover your expenses (including fuel costs), you're gonna eventually go bankrupt. With the rise in the cost of fuel, these airlines should have immediately taken either of the following steps to compensate:

1) raise fares and/or other fees

2) cut costs in other areas (i.e. eliminate inflight beverage service)

Apparently they waited too late to implement cost saving measures, or maybe they didn't attempt to at all.

[sean]

I wonder why these failing airlines keep citing rising fuel costs as the reason that they can no longer operate... so silly!?

[RALNATIVE]

I wonder why these failing airlines keep citing rising fuel costs as the reason that they can no longer operate... so silly!?

It's an excuse. They're not going to come out and publicly say that "we were bad executives because we didn't make the needed changes in order to sustain the airlines through tough economic times."

Instead, they are going to say that rising fuel costs was the cause of their demise, so that people can feel sorry for them and blame the government for rising fuel costs.

[ezcheese]

I just went looking for Skybus's annual report, but apparently they were privately held. I do wonder what their books looked like because when looking for their form 10-k, I found this announcement from JetBlue:

"http://www.primenewswire.com/newsroom/news.html?d=139608

JetBlue Offers Affected Skybus Customers and Employees Special Standby Fares

JetBlue will offer Skybus customers a special standby fare of $50 for one-way travel. JetBlue does not directly serve all former Skybus destinations. This fare will be honored for any JetBlue destination within 100 miles of the original Skybus destination."

This offer does include Greensboro.

I took a quick look at JetBlue's financial info, while they're not doing gangbusters, they did manage to report $18 million in net income last year, which for a budget airline isn't too shabby. I would have to say that if Southwest and JetBlue are managing to stay afloat, Skybus certainly cannot blame their demise solely on fuel prices.

[JerseyBoy]

http://www.journalnow.com/servlet/Satellit...d=1173355206206

What kind of people do we have running this airport?

[Squirrel]

http://www.journalnow.com/servlet/Satellit...d=1173355206206

What kind of people do we have running this airport?

Well, DUH!

And, no matter how the local officials want to spin it, the airport will remain stagnant and eventually fall backwards again if there isn't a collaborative effort between all the governments in the Triad to recruit another, reputable I might add, lowcost carrier.

There is none left to recruit. Allegiant was the best bet hopefully since SkyBus stopped flying Allegiant might change their minds and keep GSO. Southwest won't leave RDU and Jetblue is focused on CLT. Frontier is cutting back.

[sean]

Read this morning:

(April 5, 2008)- American Airlines says it is putting a freeze on hiring management and support jobs indefinately.

The nation's biggest airline says the high price of jet fuel is the reason for the freeze.

The company expects to spend $9.3 billion this year on fuel, 39% more than last year.

Looks like even the big boyz of airlines are using the excuse of petro prices.... we know better, its poor management!

[hueion39]

Looks like even the big boyz of airlines are using the excuse of petro prices.... we know better, its poor management!

While commercial airliners receive a large tax break for jet fuel, a complete elimination of the tax would be appropriate if the government wants to help the situation.

[sax184]

Well, Skybus is gone and we've not invested any additional money in bringing high-speed rail service to the Triad region. Thank goodness we didn't give a bunch of incentives to Skybus...oops, nevermind.

The age of cheap oil has come to an end. Higher fuel prices will be with us to stay, and air transportation remains an extremely vulnerable industry. Delta and Northwest are now looking at merger again to save costs. Small airlines folding and bigger airlines consolidating (transportation is a "natural monopoly") means less competition and higher prices at the ticket counter, which means more trouble for an-already challenged PTI. Back in 2006, I said on this thread that PTI had 10 years left as a major passenger airport, but still felt a little bold making such a prediction. I think that prediction looks less bold and more reality-based today.

[sean]

An even easier strategy would be to re-invigorate our existing rail system. Its not as sexy as bullet trains, but its already in place and requires no new techno adaptation. To paraphrase a common Kunstler rant, our railroad system is out there rusting in the rain. It could be re-built and in the process give Detroit and other heavy manufacturing communities some meaningful work.

Its worth taking a look at the fuel cost per mile when moving a ton of freight by truck, train, and airplane. Guess which method uses the least amount of fuel?

[suburban george3]

Well, Skybus is gone and we've not invested any additional money in bringing high-speed rail service to the Triad region. Thank goodness we didn't give a bunch of incentives to Skybus...oops, nevermind.

I did read that Skybus wasn't in business long enough to receive any of the promised incentives. *PHEW!*

[dreamspec]

Well, Skybus is gone and we've not invested any additional money in bringing high-speed rail service to the Triad region. Thank goodness we didn't give a bunch of incentives to Skybus...oops, nevermind.

I was so disappointed when I read Skybus was kaput. I had actually thought of going on my first airline flight on them over the summer. Guess I'll be driving, if I go anywhere at all...

[sax184]

An even easier strategy would be to re-invigorate our existing rail system. Its not as sexy as bullet trains, but its already in place and requires no new techno adaptation. To paraphrase a common Kunstler rant, our railroad system is out there rusting in the rain. It could be re-built and in the process give Detroit and other heavy manufacturing communities some meaningful work.

Its worth taking a look at the fuel cost per mile when moving a ton of freight by truck, train, and airplane. Guess which method uses the least amount of fuel?

Our approach to high-speed rail in NC WILL use existing rail lines and involves upgrading them significantly, though not to the 186-mph standard of Europe. Read more here.

Also, I stand corrected- apparently the Triad is only out about $40,000 in incentives on Skybus. That's a good thing, but if the response of the business and political leaders is only to throw more money at other airlines for similar incentives, we'll know they've learned nothing from this experience.

[sean]

Oasis Airlines turfed... another one bites the dust.

[Squirrel]

Allegiant is now staying in GSO keeping service to Orlando and St. Pete and addign Fort Lauderdale.

[sean]

Frontier Airlines bankrupt.... wow thats a whole lot of blood on the streets for just one week.