New entrant Skybus hopes to start flying in early '06

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WASHINGTON -- A proposed new entrant airline called Skybus plans to launch all-coach, low-fare service from Columbus, Ohio, in early 2006, if it can get the required governmental approvals and raise at least $60 million more capital from private investors.

Skybus told the Transportation Department (DOT) it plans to operate with only one aircraft type, either 737s or A320s, configured for 130 to 160 seats. Skybus, which believes its low fares would stimulate traffic in Columbus, plans to grow its fleet from two aircraft to seven in its first year.

All of the aircraft would be new, as was the case with startup JetBlue in 2000.

That means Skybus, like JetBlue when it started, will need to raise lots of cash. Skybus has $3.5 million in seed money primarily from three Columbus-based companies -- Huntington Bancshares, Nationwide Mutual Capital and Wolfe Enterprises -- but it is hoping to raise $70 million to $100 million in additional capital this year. It said $60 million should be enough meet the DOTs financial requirements.

Skybus needs approval from the DOT and Federal Aviation Administration before it can fly.

Skybus is currently searching for a permanent CEO, but its president and chief operating officer is Kenneth Gile, who worked for Southwest for 25 years, including his last four as director of flight operations.

If the Skybus name sounds familiar, its because it also was the name of a Denver-based startup that flew from June 1985 to December 1986, as well as a Florida-based low-fare public charter operator that flew in 1992 and 1993.

To contact reporter Andrew Compart, send e-mail to [email protected].

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