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Skybus Airlines shuts down operations

CHICAGO, April 5 (Reuters) - Skybus Airlines Inc, a low-cost U.S. carrier, has shut down its operations due to rising jet fuel costs and the weak economy, the company said.

The shutdown began on Saturday and comes less than a year after the Columbus, Ohio-based company began flying. Skybus, which operated flights to 15 U.S. cities, announced its decision to shut down on its Web site.

The company became the third U.S. airline to shut down its operations this week, following similar moves by ATA Airlines Inc and Hawaii-based Aloha Airlines.

Big airlines are beginning to shrink to cope with toughening operating conditions. On March 18, Delta Air Lines Inc DAL.N unveiled plans to cut 2,000 jobs and scale back flights.

The combination of rising fuel costs and the weakening economy has stalled the airline industry's modest recovery from the 2001-2006 downturn. Oil prices CLc1, which are directly related to jet fuel costs, remain above $100 a barrel.

Skybus, which offered blocks of $10 seats on its flights, had tried to boost its revenue by selling advertising space on the fuselage of its aircraft. It also offered commissions to flight attendants who sold food and merchandise on board. (Reporting by Mark Weinraub; Editing by Eric Beech)

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