COLUMBUS, OH – Skybus Airlines, the new low-cost carrier that entered the Hudson Valley market with flights from Stewart Airport to its hub at Columbus, OH and to Greensboro, announced Friday night that it would cease all operations effective Saturday, April 5. It will file for bankruptcy protection under Chapter 11 on Monday, April 7.

“Skybus struggled to overcome the combination of rising jet fuel costs and a slowing economic environment,” said Skybus CEO Michael Hodge. “These two issues proved to be insurmountable for a new carrier.”

“I had high hopes for Skybus especially with their hook of 10, $10 flights on each flight,” said John D’Ambrosio, president of the Orange County Chamber of Commerce.

When contacted Friday night, a Port Authority spokesman was unaware of the Skybus announcement. The Port Authority operates Stewart Airport.

Passengers holding reservations for flights scheduled to depart on or after Saturday should contact their credit card companies to arrange to apply for a refund, the airline said.

“We deeply regret the impact this decision will have on our employees and their families, customers, vendors, suppliers, airport officials and others in the cities in which we have operated,” said Hodge. “Our financial condition is such that our Board of Directors felt it had no choice but to cease operations.”

Skybus began operations on May 22, 2007 and at the time it ceased operations was operating 11 aircraft making 80 daily flights to 15 cities in the US. It began Stewart service in mid-January of this year. It had planned to add a third city from Stewart, Portsmouth, NH.

Skybus had approximately 450 employees, 350 based in Columbus and the remainder in North Carolina. Employees were notified of the airline’s action on Friday.