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Midwest Death Watch Trifecta: Cash Infusions, Outsourcing and Bag Fees

September 4, 2008 at 8:30 AM | 1 Comment

Struggling carrier Midwest Airlines has sealed a deal for $60 million in new financing, and has inked another bargain to add 12 regional jets to its fleet, while trimming its 717 holdings. The carrier has already secured $40 million of the promised money--needed for paying off debts to airports, among other things--and it also got a $15 million loan from Republic Airways, the company Midwest has hired to operate those dozen regional jets.

The outsourcing of the Midwest Connect service starts on October 1, which means another couple hundred employees will be furloughed--on top of the 1,200 jobs already cut this summer. The airline says that's to train its people on the new Embraer 170s that Republic flies; the Midwest pilots' union has its doubts:

Management [has] restated its continued intent to wring drastic, draconian concessions from our pilots, holding our very jobs hostage as part of its deal with Republic.

But the airline simply doesn't need as many pilots working because it's also renegotiated a lease with Boeing. Midwest will return 16 of its 25 717s to their manufacturer. That means just nine planes will be kitted out with the new seats announced in August.

Oh, and one last thing: Midwest will start charging $15 for your first checked bag on flights October 21 and later.

Related Stories:
· Midwest Airlines Announces Progress on Restructuring Plan [Official Site]
· Midwest Pilots Express Outrage at Airline's Deal [PRNewswire]
· Midwest Makes More Cuts [WTMJ]
· Midwest Death Watch coverage [Jaunted]

[Photo: phantom kitty]

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1 Comment

Return to » Midwest Death Watch Trifecta: Cash Infusions, Outsourcing and Bag Fees

  1. milwaukeedad

    Jaunted Member
    September 4, 2008 at 12:00 PM




    Midwest would have been better with AirTran

    As a former frequent Midwest flier, I am sad to see this happen, but not surprised.  When AirTran was attempting their takeover, the press in Milwaukee was completely biased in their coverage.  They hailed the TPG/NWA buyout as saving the airline.  They completely ignored AirTran's arguments for a stronger combined airline.   Now we see the truth - that they would have been much stronger together, and they would have been able to save many of the jobs Midwest has now had to cut because they simply are too small to survive.  Who benefitted from the buyout?  Mainly the officers of the company, certainly not the consumers or the front-line employees.  The CEO made $6.5 million from the buyout!  It's a shame the press didn't look further at the negatives of the buyout and explain them to the public.  I no longer book flights on Midwest because I am afraid they will just shut down one day soon and I will be stranded somewhere.
    I fly AirTran regularly now (since they have increased their flights in Milwaukee).  During the attempted buyout, the press referred to them as the wal-mart of airlines.  I find their service equal to that I receive on Midwest.  The planes are clean and modern.  I still hold out hope Midwest will survive just because competition is always good, but as time goes on, that seems less and less likely.

Return to » Midwest Death Watch Trifecta: Cash Infusions, Outsourcing and Bag Fees

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