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How Skybus makes a profit with $10 seats

06:23 PM PDT on Tuesday, May 29, 2007

KING5.com staff

BELLINGHAM, Wash. - A new airline that promises super-cheap seats on every flight took off from Bellingham for the first time Tuesday.

Low-cost carrier Skybus made headlines with its promise to sell 10 seats on each flight for $10 each.

The first Bellingham to Columbus, Ohio flight left at about 9 a.m. Tuesday morning.

For now - Columbus is the only destination out of Bellingham, but the carrier says it will eventually add more cities.

Some wonder if the business will sustain itself after another Bellingham-based airline that sold low fares – Western Airlines – halted flights after only a month.

Bus Skybus plans other methods to make a profit, including advertising, an efficient flight plan and operation out of second-tier airports like Bellingham.

Earlier this week, the director of the Port of Bellingham told KING 5 it had researched Skybus thoroughly before signing a lease with the airline. Art Choat noted that Western was a charter airline, and Skybus is FAA licensed commercial airline.

"All these people have many, many years of experience with other air carriers. They have a good business plan," Choat said.

As part of its plan, Skybus will offer advertising space on the outsides of its jets, so customers will see business logos emblazoned on the carriers.

The airline sets aside 10 seats per flight at the $10 rate -- then they go up to $50, $90 even $120 – so customers have to act fast. To cut costs, Skybus also uses second-tier airports like Bellingham. Flights to Boston actually land 56 miles away in New Hampshire.

The Bellingham location had some of Tuesday's Puget Sound customers pleased.

"I'm going to shave at least six hours off my day," said customer Brent Aleong.

In addition, the airline plans for no longer than a half hour on the ground between flights to maximize flight-time.

While passengers had cheap tickets Tuesday, they had to pay for everything else.

KING 5's Rob Piercy was at the launch, and reported that it cost extra money to check baggage, use a pillow or buy bottled water. A bag of chips or M&Ms was $2 and meals were $10.

But many of Tuesday's customers didn't seem to mind.

"I got all of our tickets for $208 with taxes," said traveler Athena Brown, who was flying with her family. "You can't beat that."

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