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October 24, 2007

Skybus: Finding Your Inner Samurai

Filed under: Airlines — Rick Seaney @ 10:41 am

Over the last few months, I’ve spent a lot of time reading and writing about Richard Branson and Virgin America (VX). Branson’s latest shindig to celebrate VX’s first flights to Vegas reminded me of an article I read back in August. It was a piece done by Ric Romero of abc7 in Los Angeles, and it focused on Skybus CEO Bill Diffenderffer.

Diffenderffer strikes me as sort of a blue collar Branson. Both are dedicated to creating a different customer experience, and both have their eccentricities. But where Branson loves a bit of glitz and glamor, Diffenderffer seems to be a little more “no-frills” about things. However, glitz or no, Diffenderffer, like Branson, could play an integral role in shaping the future of American air travel…

Skybus has become famous for offering what most would consider ridiculously low airfares. There are $55, $25, $10, and even the occasional $5 fares. So, how does Skybus make money? They charge you for everything else. You want a soda? You’re going to pay for it. You want a pillow? At $15, it could cost you more than your ticket. Diffenderffer has also been able to lower prices by paying employees less, but there are incentives for Skybus flight attendants and ground crew at every turn. When you shell out the money for that Coke or that pillow, the flight attendant who sells it to you gets a commission. As for the ground crew; if they meet Diffenderffer’s desired 25-minute turn around, there’s extra money in it for them.

Offering incentives for doing the job that you’re supposed to be doing might sound a bit strange to some, but it has proven effective for Skybus. They have managed to lock down markets like their headquarters in Columbus, even as other low cost carriers like jetBlue have pulled up stakes, and Skybus also will be adding new routes into Greensboro.

So, what led Bill Diffenderffer to adopt these business practices? Well, according to the abc7 piece, the Samurai Code:

“The Samurai in me is not afraid of taking on one of the ugliest industries when it comes to the performance judged by the consumer, and instead saying, ‘We’re going to give you a great product,’” said CEO Bill Diffenderffer.

Indeed, the Code of the Samurai is one of Diffenderffer’s favorite subjects, and he has even written a book on it. But how does the Code affect his approach to his work?

“The idea of true fearlessness, that you can get over the stress of your job, that you can be, if you put all of these steps together–and it is a very much holistic effort–that you can reach fearlessness.” (from The Columbus Dispatch)

Now, that kind of talk would make Branson proud.

1 Comment »

  1. I met Bill years ago when I owned a Travel Agency in New Jersey and he was running ‘System One’ (GDS that was acquired by Amadeus.) The man is a straight shooter and is for real. We need more Bills in our industry!

    Bruce Frankel
    President
    The Mindful Traveler

    Comment by Bruce Frankel — October 26, 2007 @ 8:09 pm

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