It looks like all I did was cut off the skirt below the ribbon, but there's was actually a little bit more involved. I originally just wanted to hem it sans ribbon, but later I decided that adding the ribbon back to the bottom hem would give it a Chanel-inspired look.
Here's what you need:
Seam ripper or scissors
Sewing machine (I used two, a regular one and a serger)
I cut open the seams on the ribbon, the flounce, and the lining hem. I decided not to just simply cut off the skirt above the ribbon for two reasons: A) I didn't want the skirt to be any shorter and B) the edge was nicely pressed and serged already - one less step for me.
I cut open the back seam of the lining several inches to make a back vent. Then I serged the new edges to prevent fraying. I pinned the new vent edges of the lining at the original seam line and topstitched the vent. Also, I reinforced the seam above the vent (where I cut it open), with a few forward and reverse stitches (not pictured).
I started with the same process I used for the lining vent, but after serging the fabric for the skirt, I pressed the seam at the original seam allowance and hand-stitched it in place.
I cut off the hem of the lining (since it was the same length as the skirt now, it needed to be shortened) and turned under 1/2 inch and pressed. Then I turned under another 1/2 inch, pressed, pinned, then topstitched.
I hand-basted the ribbon onto the edge of the skirt (the fabric was already serged and pressed under from where the flounce was attached). Next, I stitched the ribbon to the skirt with the machine, both at the top and bottom edges of the ribbon, then removed the hand-basting.
As a finishing touch, I hand-stitched the edges of the lining vent to the edges of the fabric vent so the lining wouldn't shift too much during wear.
And that's all it took to refashion this skirt. I honestly spent more time cutting open seams than I did of actual sewing!