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Abstract

Skybus, a newly launched US budget carrier, grabbed attention as the Ryanair of the US. Following Ryanair's successful business model and backed by the local investors, Skybus enjoyed a strong financial position. However, it started facing severe challenges due to poor service quality, the charges levied for each and every add-on service and poor customer service. Critics were sceptical about the future of Skybus. They felt that Skybus might not be able to sustain with its business model in the over-saturated US aviation market by following a European LCC (low cost carrier) business model, which was successful in a less competitive market.
Location:
Industry:
Other setting(s):
2007

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Abstract

Skybus, a newly launched US budget carrier, grabbed attention as the Ryanair of the US. Following Ryanair's successful business model and backed by the local investors, Skybus enjoyed a strong financial position. However, it started facing severe challenges due to poor service quality, the charges levied for each and every add-on service and poor customer service. Critics were sceptical about the future of Skybus. They felt that Skybus might not be able to sustain with its business model in the over-saturated US aviation market by following a European LCC (low cost carrier) business model, which was successful in a less competitive market.

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Location:
Industry:
Other setting(s):
2007

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