By Chris Reiter
WASHINGTON (Reuters) - With flight attendants that earn commissions and tips, and planes emblazoned with other companies' ads, Skybus Airlines Inc is breaking the mold in the U.S. airline industry.
The ultra-low cost carrier, which began service in May boasting $10 one-way tickets on every flight, says it can make money despite record oil prices, because it cuts costs and earns money wherever it can.
"We do a lot of things that typically the airline industry would say, 'Wow! That's kind of embarrassing.' We don't care," said Mike Hodge, its chief financial officer, at the Reuters Aerospace and Defense Summit in Washington.
Skybus, which intends to acquire more than 70 aircraft over the next five years, plans to undercut rivals by flying to underserved markets and charging for services such as checking bags and priority seating.
The carrier has flight attendants that can earn commissions by selling food and merchandise on board. It keeps costs down by only taking reservations over the Internet and not staffing a call center.
Skybus, which has hubs in Columbus, Ohio, and Greensboro, North Carolina, currently operates 35 daily flights.
The company has also taken the unusual step of selling advertising space on its fuselage, typically a privileged place for an airline's brand.
One of its planes is adorned with winged pigs as part of the "when pigs fly" campaign by credit card company Capital One Financial Corp (COF.N: Quote, Profile, Research, Stock Buzz). Continued...
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