Why do airlines go bankrupt so frequently?
Jan Meriss Alfonso Assistant at Ascent Law LLC Airline bankruptcy Airline bankruptcies happen so often that it's a wonder people still fly. Yet the industry is still thriving, and those of us who have no other choice but to fly, keep flying. So what exactly is going on? Skybus airlines A few years ago, a new airline called Skybus started up in Columbus, Ohio. It promised low prices on air travel to nearby cities like Chicago, Detroit, and Pittsburgh. This was great for people living in the area because ticket prices were now half what they'd been with the other airlines. But Skybus couldn't hold on to its low prices forever or get enough business from these smaller cities to make it profitable. Less than a year after its start-up, Skybus went bankrupt. Airlines going bankrupt frequently A lot of them do survive, and those that don't are usually small regional carriers looking to fill a niche. The main reason that airlines go bankrupt so frequently is because of the hi...