Midwest Airlines Midwest Miles - Bedford interfiew on WUWM

WUWM's Lake Effect program had a 15-minute interview with Bryan Bedford yesteday.

A couple of points of note:

(a) Bedford stated that before the end of the year there would be Airbus here in Milwaukee, with the aircraft coming from Frontier but offering Midwest's product. He did not say that Midwest crews would be flying them (although in the short term I don't see how that could happen.)

(b) When asked about the job cuts in Milwaukee, Bedford stated that the cuts are those known about since day one. Some are due to the 717's leaving, which are on short term leases which expire at the end of the year. But while there are cuts based on those aircraft leaving, there are crew additions on the other side as we hire people for the new planes. He did not address specifically, however, how 717 crew would transition to Republic planes. The job cuts in administration were also known and openly mentioned at the time of acquisition, stating those were simply matters of redundancy between the airlines.

(c) Beford also mentioned that there was potential for work to be moved to Milwaukee, and that they were working with state and local leaders toward that end. He also said simlar talks were happening in Denver and Indianpolis. It was not specifically said what sorts of jobs, although there is widespread speculation that significant maintenance work is coming to Milwaukee based on the large Midwest facilities here. I also noticed on the Midwest site there is an opening in Milwaukee for a Manager of eCommerce Marketing. One wonders where different "real airline" functions will happen between Milwaukee, Denver, and Indianpolis (and what functions perhaps won't be combined), but seeing a "real airline" opening in Milwaukee like this is at least not a bad sign.

Speaking of online job posings, there are openings in MKE for Ramp, CSR/Gate, and both full and part time Reservations Sales Agents. It's always possible this is simply due to run-of-the-mill attrition, but these MKE positions are not always listed. Seeing all three main CS positions open at the same time makes me think they might be preparing for increased volumen, not just doing routine backfilling.

Finally, I wonder specifically what Bedford means that the Airbus will have "Midwest's product". Best care cuisine? Ovens for hot meals and cookies? Signature seats? Disabled TV monitors? Part of me thinks that these Airbus will have the Frontier's standard all-the-same coach seating. That is was Midwest's Saver had at first, and it might be the direction that Frontier Midwest is heading. However, the E190's are specifically being configured with Signature and Saver seating...Signature being conventional-width seats with significantly extra legroom...but nevertheless they are purposely choosing to have dual-seating on the new E190's. (The first two E190's have 1x2 Signature, but that will be reconfigured to 2x2 with extra leg room.) So...maybe the Airbus will have a premium section? If not day one, perhaps soon?

It would be interesting to know what their thoughts on are on product standardization between Midwest and Frontier...what things they do or do not plan to standardize as long as the airlines remain distinct. Of course I'd like to see all Midwest's distinctions kept, with the addition of onboard electronics which Frontier already has. But that's not necessarily best. A lot probably depends on the economic return of things. Is buy-onboard at least break-even for Midwest, and how difficult would it be to implement it on the Frontier network? Does the revenue of Signature cover the added costs of (in some cases potentially) reduced seating and the cost of maintaining and selling separate inventory? Does the onboard TV bring in revenues to cover costs and is it competitive with other airline offerings, or should they move to Wifi and/or onboard power?

Lots of questions, I guess. Time will tell.

Great questions to ponder.

If inflight wi-fi can pay for itself through the revenue it generates, then it's a no-brainer. Power ports would be nice, but I doubt they can find a way to charge money them. Perhaps if they are wiring for TV's, then it might be easier to install the ports. I doubt that as many people pay for TVs as pay for Wifi, but I don't have hard data on that.

One would think that wi-fi would be an easier sell to both business and leisure travelers. Live TV is probably a little harder to justify to business pax.

As for the seating configuration, who's to say that Frontier won't introduce signature class on its product? It might be a way to differentiate from Southwest a little bit. Perhaps they can add signature and bring in a little extra revenue. Who knows.

Also, it's possible that some of the Airbus jets will come to Midwest and be replaced with some extra E 190s flown by Republic out of DEN. That might allow for Midwest to get more long-distance planes without taking much capacity out of the F9 operation.

Just thoughts here....no inside knowledge. It'll be interesting to watch these two airlines "merge" without formally merging.

Knope: check your PM.

Finally, I wonder specifically what Bedford means that the Airbus will have "Midwest's product". Best care cuisine? Ovens for hot meals and cookies? Signature seats? Disabled TV monitors? Part of me thinks that these Airbus will have the Frontier's standard all-the-same coach seating. That is was Midwest's Saver had at first, and it might be the direction that Frontier Midwest is heading. However, the E190's are specifically being configured with Signature and Saver seating...Signature being conventional-width seats with significantly extra legroom...but nevertheless they are purposely choosing to have dual-seating on the new E190's. (The first two E190's have 1x2 Signature, but that will be reconfigured to 2x2 with extra leg room.) So...maybe the Airbus will have a premium section? If not day one, perhaps soon?



Here's a few thoughts that I have:

1) Premium seating. I suspect that we'll see some form of premium seating at both Midwest and Frontier long term, but that doesn't mean it will consist of a Signature section in the cabin. In the past, Sean Menke has publicly stated that Frontier was exploring the possibility of adding some type of premium seating but my impression was that it would be along the lines of what JetBlue or United does with adding a few inches of leg room. These seats would be made available to customers to tended to book late and paid higher fares and those willing to pay a nominal fee to get into the seats immediately at the time of booking.

2) Food. Both Frontier and Midwest offer onboard food sales. Midwest has stated several time sin the past that Best Care Cuisine was profitable (the original goal was for it to be break even). The food options could certainly be expanded across both carriers. Countless surveys have shown that customers are willing to pay for quality onboard food and beverages. Republic has to figure out a way to better match offers with demand (something Midwest has sruggled with).

I believe their is an opportunity to create a seperate group of food/beverage offerings for Lynx and Midwest Connect (the E135/E145 routes). Perhaps its including Best Care Cafe or some other cold meal offerings/snacks. Maybe...just maybe...we could see Midwest bring back the kringle on all morning flights originating out of MKE and...gasp...providing it free of charge!

It would be great of Republic could sort of mirror what Horizon has done.

As for the cookies, Bedford made a point of saying how important these were to the Midwest brand. Therefore, I don't think we'll be seeing these exported to Frontier flights (other than the ones operated on Midwest's behalf).

3) Onborad service. IMO, it wouldn't make any sense to turn the TVs off on the Airbus jets, especially if they will be assigned to long-haul or high volume leisure markets. Frontier prices TV access at $5 a pop and they do quite well. There's no reason why Midwest shouldn't try to capture this revenue stream from a captive audience. I also think WiFi will be rolled-out within the next year or two. They'll have to have it for competitive reasons.

SEan Menke apparently will have a very active roll at Midwest and I look forward to seeing what he plans to do with the airline.

Interesting points Blue but Midwest and Frontier are very different airlines. It sounds like you are hoping that Frontier becomes more like Midwest. As you know I am not expert on these matters (you and Knope are) but I thought that frontier was a LCC? If they want to stay that way don't they need to find ways to cut costs? The way that LCCs are profitable depends on how their cost structure is (correct me if I am wrong). Airtran and Southwest have been successful because they have a low operating cost structure. If Frontier wants to continue it's "success" against Southwest and United shouldn't they be focusing more on ways to cut costs?

If you have evidence to suggest that having food on a plane influences the decision of people when the decide which airline to fly please give it.

In my opinion, unless you are flying trans con flights or international flights food really does not matter to the average passenger. Neither Frontier or Midwest fly trans continental or trans atlantic/trans pacific flights.

While I think that it makes most since to combine Midwest and Frontier I do not see a premium airline as the best option. I think that this "new" airline needs to focus on cutting costs and getting it's operating costs as low as possible.

I just looked at Frontier's menu and they only offer cold food. Are you (Blue) suggesting that frontier add hot food items?

If so does Frontier's airbus fleet have ovens?

If not are you suggesting that they add ovens?

American just got rid of their ovens on their MD-80 fleet because of the added weight to the plane. I think that they saved millions of dollars by getting rid of the extra weight on their planes.

I do not see how the benefits of a Midwest type food menu out weigh the costs. Please elaborate on your idea

It sounds like you are hoping that Frontier becomes more like Midwest.

While there are certain features about Midwest that I like a lot, that doesn't mean Frontier will or should adopt all of them. Based on Bedford's comments in the WUWM interview and elsewhere, it seems as though they would like to incorporate features from both carriers while still maintaining the seperate brands.

These days, LCCs seem to offer more in onboard ammenities than the tradition legacy carriers. As you noted, cost containment will be a huge priority. The costs at Frontier are already pretty low. Republic will have its work cut out at Midwest, but the changes to more efficient aircraft and the right sizing of certain markets will certainly help

If you have evidence to suggest that having food on a plane influences the decision of people when the decide which airline to fly please give it.

I doubt few, if any, people pick an airline based solely on whether they serve a meal or not. What I said was that people are willing to pay for quality food/premium beverages. This has been backed-up by various studies (the recent issue of Travel & Leisure Magazine has an article on this). Having a good buy onboard product offering will help enhance the brands and help set them apart from other carriers.

A side benefit is that the catering can be done in-house which helps reduce costs.


While I think that it makes most since to combine Midwest and Frontier I do not see a premium airline as the best option. I think that this "new" airline needs to focus on cutting costs and getting it's operating costs as low as possible.

I don't think we'll be seeing a premium airline at all. Think of Frontier and Midwest as a virtual merger. There will be a lot of behind the scenes consolidation to reduce costs and create efficiencies while the two brands are maintained seperately (for the time being anyways). With that said, there are a number of ways to enhance the in-flight experience while keeping costs in check.

I just looked at Frontier's menu and they only offer cold food. Are you (Blue) suggesting that frontier add hot food items?



I'm not saying that they have to offer hot food items on Frontier aircraft. In my original posts, I simply indicated that food options could be expanded across both carriers. At the moment, there are many items that Midwest offers that don't require the use of ovens (both from the Best Care Cuisine and Best Care Cafe menus).

If the program is profitable at Midwest (it was in 2007) then there might be an opportunity to expand it to Frontier.

Of course, what works at Midwest may not work at Frontier and vice versa. However, there are lots of option available for the buy onboard program. We'll see what Republic plans to do (if anything).

Here is the link to the Bryan Bedford interview on WUWM.

http://www.wuwm.com/programs/lake_effect/view_le.php?articleid=787

Here is the link to the Bryan Bedford interview on WUWM.

http://www.wuwm.com/programs/lake_effect/view_le.php?articleid=787

Thanks FlyYX

That guy was lying. I couldn't even finish listening to the interview. He stated that Frontier had a superior cost structure to Southwest and Airtran. Airtran has the lowest operating cost structure in the industry (US). Southwest is a strong number two.

Thanks FlyYX

That guy was lying. I couldn't even finish listening to the interview. He stated that Frontier had a superior cost structure to Southwest and Airtran. Airtran has the lowest operating cost structure in the industry (US). Southwest is a strong number two.

I wouldn't say he is lying. I think eventually he will have to show figures to back up his words. Now that Frontier and Midwest are part of a publicly traded company Bryan will have to show the numbers for each airline. So we will see.

That guy was lying. I couldn't even finish listening to the interview. He stated that Frontier had a superior cost structure to Southwest and Airtran. Airtran has the lowest operating cost structure in the industry (US). Southwest is a strong number two.

Yikes...accusing him of being a liar is a little strong, perhaps?

Frontier's most recently-reported cost per seat mile, exlucing fuel costs and special items:
6.01 cents per mile

http://www.reuters.com/article/pressRelease/idUS180175+28-Jul-2009+BW20090728

AirTran's most recently-reported cost per seat mile, excluding fuel costs and special items:
6.33 cents per mile

http://www.reuters.com/article/pressRelease/idUS101887+22-Jul-2009+PRN20090722

Looks like Frontier's is lower to me.

Could there be caveats why it's not a fair comparison between FL and F9? Sure, could be. Maybe Frontier has a longer stage length, for example, to account for the lower CASM. But it's just as likely that AirTran's boast was that they have the lowest cost is factually correct among major airlines. With less than $1billion in revenue, Frontier is not considered a "major". The network carriers have for years fudged by comparing their results to other network carriers, or just to major airlines.

Anyone who ends his business memos with God bless you would never lie.
Didn't Jesus throw men like Bedford out of the temple?

Best as I can recall, Jesus was especially displeased with the self-righteous.

Anyone who ends his business memos with God bless you would never lie.
Didn't Jesus throw men like Bedford out of the temple?

Why do you attack Bedford everytime for his beliefs? I remember working for OO (their CEO and most of the executives are Mormon) ended ever memo with god bless and they are a very good company too.