Midwest Airlines Struggling to Avoid Death Spiral
Troubled Midwest Airlines is toiling to avoid bankruptcy. After grounding its fleet of MD-80s, the carrier still needs to come up with a way to avoid a complete shut-down--and it's not looking good.
CEO Timothy Hoeksema is asking some employees to take a 65 percent pay cut and says the situation is "critical." Midwest may also park some of its 717s, further trimming the carrier's already small fleet.
The bigger trouble with all this is that no sensible person would buy tickets on the tanking airline, which of course hurts Midwest even more. Passenger numbers so far this year are already down nine percent compared to the same period last year. Cutting more flights certainly won't get bookings up--and neither will the specter of imminent bankruptcy.