Skip to Content

JetAmerica -- one plane, $1.4 million in grants makes an airline

Text SizeAAA

Filed under: Transportation, Travel

Take a dollop of recession, a healthy spoonful of declining air passenger numbers, add the scent of prior failure and what do you get? A new airline.

Some of the people behind the recently folded Skybus are back with JetAmerica, a new regional airline that will serve a few towns in the Great Lakes area and cherry-pick a couple of longer routes.

The new air carrier will operate out of the Toledo (Ohio) Express Airport, thanks to a $600,000 grant from the city and additional money chipped in by other destinations to a total of $1.4 million.

Borrowing a PR stunt from Skybus, JetAmerica will offer nine seats per flight for $9 per. Fares will top out at $199 for a one-way ticket, although it will tack on extra charges such as a $10 booking fee.

Cities on the original flight plan are Lansing, Mich., Newark, N.J., South Bend, Ind., and Melbourne, Fla. Three flights a week will serve Minneapolis.

The management of JetAmerica includes Skybus founder John Weikle, who left the company shortly after inception, Chris Gazel, chief pilot for Skybus, and Sharon McDermott, a regional station manager for the failed airline.

The State of Ohio is attempting to recoup $1.15 million of the grant money given to Skybus. Port Columbus is out $5.2 million in lost incentives and rent, while unsecured creditors appear to be in line to receive 76 cents on the dollar when the bankruptcy is complete. Stockholders were left holding the barf bag.

JetAmerica had originally planned to launch last year from Charleston, W.V., but astronomical fuel costs and the sagging economy led to the decision to postpone the starting date, while cash convinced it to relocate to Ohio.

JetAmerica is outsourcing the actual flying of passengers to Miami Air, which will fly the single Boeing 737-800 that comprises the JetAmerica fleet. Shades of Skybus, which ran into a PR nightmare when one of its fleet of only five planes was grounded for repair, leaving thousands stranded. There is lean, and then there is anorexic -- Skybus adopted a finger-down-the-throat business plan, and JetAmerica seems to be flying in its contrail.

A Toledo airport executive told the West Virginia Gazette that a direct flight to New York was important to the cities' business community. According to the Bureau of Labor Statistics, Toledo is #52 among 372 metropolitan areas in unemployment, at 12.1%. An optimist would suggest that direct flights to New York could only help bring new business. A pessimist would wonder how many Toledo residents have the money and the need to fly to the Big Apple?

The airline probably isn't worried. It has all that startup capital from the cities it will serve, and if it doesn't work out? Just follow Skybus into the hanger.

Note: JetAmerica and Jet America are two different companies. Is that smart business?

If you're interested in transportation, you may like
these related sites for: Maps, Driving Directions, Travel, and Cars.
Subscribe to Walletpop

Reader Comments (Page 1 of 2)

Find Your Next Car

Find Your Next Car

AOL Autos New Cars and Used Cars
Readers' Choice Winners for Best in Winter Travel
Votes have been cast for Best Ski Hotel, Best International Ski Destination, Best Caribbean Cruise ...
Readers' Choice Awards for Best in Sweets
Is there a maker of fine chocolate candy that makes your mouth water just thinking about it? Who ...

Ask the Dolans

Have a question about the "Cash for Clunkers" program or any other personal finance subject? Ken & Daria Dolan are here to help.

Ask your own questions to the Dolans

Julia Scott
Julia Scott Filed under: Bargain Babe

Borders coupon for 33% off

Here is the latest coupon from Borders. Get 33% off any one regular-priced item today through Thursday, Feb. 11. Some exclusions. Online use coupon code BSL7210X. One per person. The coupon also ...
Tom Barlow
Tom Barlow Filed under: Food

No seed shortage for gardeners this spring, despite reports to the contrary

Thanks to the recession, more Americans are interested in growing their own vegetables. Bad timing, according to an Associated Press report that seeds for some popular veggies might be in short supply ...
Mitch Lipka
Mitch Lipka Filed under: Recalls, Consumer Ally

Deaths spark crib recall: CSPC says to stop using Generation 2 and ChildESIGNS cribs

The U.S. Consumer Product Safety Commission is issuing a crib recall and warning anyone with Generation 2 Worldwide or "ChildESIGNS" drop side cribs to stop using them following reports of the deaths ...
Zac Bissonnette
Zac Bissonnette Filed under: Real Estate

Survey says? Homeowners think real estate collapse is over

A Thomson Reuters/University of Michigan survey published last week suggests that most homeowners think the worst is over, and don't anticipate further declines in the value of their properties in ...

Most Popular Car Makers



Headlines from WalletPop Partners