Bizworld: Skybus Airlines Announces Plans to Cease Operations, Cites Costs
COLUMBUS, Ohio | Low-cost carrier Skybus Airlines is shutting down today and plans to file for bankruptcy protection next week, becoming the latest of the nation’s airlines to fall because of rising fuel costs and a slowing economy.
The financial situation of the airline, which announced the shutdown late Friday, has worsened in recent weeks, said Skybus spokesman Bob Tenenbaum.
“We deeply regret this decision, and the impact this will have on our employees and their families, our customers, our vendors and other partners, and the communities in which we have been operating,” Michael Hodge, chief executive of Columbus-based Skybus, said in a statement. “Skybus struggled to overcome the combination of rising jet fuel costs and a slowing economic environment.”
The airline makes 74 daily flights to 15 U.S. cities, Tenenbaum said. It has about 450 employees.
Hampton Roads
Port Folio Weekly names publisher
Colleen Nabhan has been named the new publisher of Port Folio Weekly, a publication owned by The Virginian-Pilot. Nabhan has worked at the Pilot and affiliated companies for 10 years in areas including sales and recruiting. She was most recently organizational development manager in human resources. Nabhan will begin as publisher Monday.
– Philip Walzer
India Ambassador to speak at event
NORFOLK | Ronen Sen, India’s ambassador to the United States, will be the keynote speaker at the 2008 Virginia Conference on World Trade, Gov. Timothy M. Kaine announced Friday.
The conference, to be held Oct. 15-16 at the Norfolk Marriott Waterside, is intended to “showcase the opportunities and demystify the challenges of doing business in Virginia and India.” The event is hosted by the Virginia Economic Development Partnership and the Virginia Port Authority, in partnership with the U.S.-India Business Council. For more information, call (804) 545-5764 or e-mail tnoll@yesvirginia.org.
– Gregory Richards
Gateway’s Berry rings Nasdaq bell
Ben Berry, chairman, president and chief executive officer of Virginia Beach-based Gateway Financial Holdings Inc., rang the closing bell Friday at the Nasdaq electronic stock market in New York. The ceremony marked the trading of Gateway’s shares on Nasdaq’s Global Select Market. Gateway is the parent of Gateway Bank & Trust Co.
– Tom Shean
nation
Airlines had poor year on quality
OMAHA, Neb. | The nation’s airlines performed worse last year than in any other year since 2000, according to one of the co- authors of an annual report on quality. Full details of the Airline Quality Rating report, which measures how well the airlines minimize the hassles of flying, will be released Monday.
Only one national airline improved its overall quality rating. The report’s ratings are based on how many delays the airlines have, how often passengers are bumped off flights, how often bags are lost and how many complaints airlines receive.
Source: Microsoft ponders Yahoo bid
SEATTLE | A person familiar with Microsoft’s bid for Yahoo said Friday the software company is evaluating its offer in light of the economic climate and the Internet pioneer’s deteriorating business.
The person, who asked not to be named because he was not authorized to speak publicly, said Yahoo Inc.’s share of the search market and overall condition have deteriorated since Microsoft announced its bid Feb. 1.
At the time, Microsoft offered $44.6 billion, or 62 percent above Yahoo’s market value. The deal currently is valued around $41 billion, based on Friday’s share prices. Yahoo’s board rejected Microsoft Corp.’s bid, saying it undervalues the company. The Silicon Valley company has since explored alliances with Google Inc., News Corp.’s MySpace.com and Time Warner Inc.’s AOL, but no alternative to Microsoft’s offer has surfaced.
Honeywell to buy equipment maker
NEWARK, N.J. | Honeywell International Inc. on Friday said it will buy Norcross Safety Products LLC for $1.2 billion to expand its line of personal protective gear.
Norcross, based in Oak Brook, Ill., makes protective and safety equipment for the fire service, utility and general industrial worker segments. Honeywell is buying the company from its majority owner, Odyssey Investment Partners.
Morris Township, N.J.-based Honeywell will integrate the company into Honeywell Life Safety, part of its automation and control solutions group.
Group won’t back GM parts supplier
NEW YORK | A private equity group said Friday it has terminated its agreement to invest $2.55 billion in auto parts supplier Delphi Corp., which has been trying to emerge from bankruptcy protection.
The announcement by hedge fund Appaloosa Management LP could have major consequences for General Motors Corp., which owned Delphi until it was spun off in 1999. Delphi is still GM’s biggest parts supplier.
The Appaloosa-led investment was an essential pillar in Delphi’s reorganization, which has been complicated by a tight credit market. The loss of the deal puts Delphi’s plan to exit bankruptcy at risk and raises the issue of whether GM would be forced to offer even more support than it is already giving.
Government lifts Ban against IBM
WASHINGTON | The government has lifted a week-old ban that prevented IBM from getting new federal contracts in an exchange for an agreement from the company to drop its protest of an $84 million Environmental Protection Agency contract it lost last year. The ban stemmed from an alleged ethical violation in connection with IBM’s protest of the EPA contract.
– From staff and wire reports
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