Skybus CEO Rejecting Skeptics

In the airline business, as elsewhere, there's always somebody a little bit younger.

JetBlue(JBLU Quote - Cramer on JBLU - Stock Picks) is no longer the new kid on the block. Since it began flying in 2000, its costs and complexities have risen. Its share price has soared and sunk.

Last year, it sold five airplanes. And last month, its founder stepped aside as CEO and sold 23% of his stock.

Contrast that with Skybus, for which everything is new. The carrier began flying in May, serving four cities from Columbus, Ohio, with at least 10 $10 fares on every flight. Its costs are minimal. A public offering is two years off. Airplanes are on order. And the CEO says he is having a ball.

"I've got the best job in the world right now," said Bill Diffenderffer, in an interview. "I was given $160 million and a blank piece of paper to design what could be the next great airline. That's not an opportunity given to too many people."

Skybus, in many ways, is JetBlue seven years ago.

JetBlue had $130 million, about $30 million less than what Skybus has. JetBlue challenged assumptions, using New York's Kennedy Airport for domestic flying, while offering both low fares and comfort. Skybus is also trying a new approach -- using secondary airports, offering bargain-basement fares and charging for every extra.

Early on, JetBlue ordered 82 Airbus A320s, while Skybus has ordered 65 A319s, which will begin to arrive in 2008. It currently flies leased aircraft.

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