Midwest Airlines Midwest Miles - All B-717s will be returned to Boeing by Nov. 3 2009




Captain Nemo
Sep 24, 09, 9:33 pm
Republic mgmt informed the Midwest Pilots' union on Wed.

All YX crews furloughed on or before that date.

Supposedly, there is a meeting in mid Oct between YX union and RAH mgmt to discuss future.

Most of us thought the 717s would be gone some time in December.

There has got to be more 190s coming soon.


flyYX
Sep 24, 09, 9:50 pm
Makes me wonder if USAir is going to sell/lease their fleet of E190's to Republic.

blucys
Sep 24, 09, 9:53 pm
Or the Frontier Airbus fleet is getting integrated quicker...Flying through Milwaukee today I saw the Frontier 4pm Denver flight leaving from D43, so the operation has moved over to the "D" concourse, just a matter of time before the Embraer's get integrated into the Frontier schedule and free up the Airbus's into the Midwest schedule.


Straight talker
Sep 24, 09, 10:51 pm
That is sad news for the reamaining flight crews who started this airline. I wonder what church Bedford goes to that would give him enough comfort to sleep at night. I guess thousands of employees and their families and the Milwaukee community unemployment burden do not concern him. The first virtual airline, I thought Lorenzo was immoral.

uavking
Sep 25, 09, 1:12 am
Wow, I guess I'm extra glad I got in one last 717 hop last week. RIP YX, it was fun while it lasted.

RSVP
Sep 25, 09, 10:52 am
Four 717's remain, I think the last numbers we heard were five A319 and four E190. The would complete the projected nine longer range aircraft.

Four E190 are already in house.

Dick Ginkowski
Sep 25, 09, 1:28 pm
This is sad for the YX people who made the airline.

On another note, for NW pax, note that the nonstops to LAS are now on Frontier metal which, as of this point, means no mileage credit.

blucys
Sep 25, 09, 2:13 pm
If anyone wants to get in a last trip on a 717, they are 2 trips a day between MKE-BOS most of October...The last two flights of the day between MKE-BOS are 717's and one spends the night and is the first flight out of BOS back to MKE the next morning.

Question for the group...Was the plan to return the 717's put together by Hoeksma or Bedford? I once again come back to the fact that the same leadership that built a good airline is the one that put it on the path to destruction and had to sell it to TPG/NWA and had no choice when they sold it to Republic.

cwe84
Sep 25, 09, 2:41 pm
If anyone wants to get in a last trip on a 717, they are 2 trips a day between MKE-BOS most of October...The last two flights of the day between MKE-BOS are 717's and one spends the night and is the first flight out of BOS back to MKE the next morning.

Question for the group...Was the plan to return the 717's put together by Hoeksma or Bedford? I once again come back to the fact that the same leadership that built a good airline is the one that put it on the path to destruction and had to sell it to TPG/NWA and had no choice when they sold it to Republic.

The B717's were leased by Boeing to click! before the aquisition. So Hoeksma is responsible for that one...

knope2001
Sep 25, 09, 3:03 pm
The more I'm hearing, however, Hoeksema was mostly a figurehead once the TPG deal closed. The strings were pulled elsewhere.

BlueHorseShoe2000
Sep 25, 09, 3:39 pm
Question for the group...Was the plan to return the 717's put together by Hoeksma or Bedford? I once again come back to the fact that the same leadership that built a good airline is the one that put it on the path to destruction and had to sell it to TPG/NWA and had no choice when they sold it to Republic.

As part of the restructuring that began last summer, Midwest and Boeing modified the lease agreement for the 717s. The revised agreements ran through August 2010 with Boeing reserving the right to recall the aircraft sooner if they could be put ithe planes nto service with another airline, presumably at higher lease rates. Obviously, Midwest had plans in the works to replace the 717s when the new leases were signed. Some initial work began last fall to add the E170s to the Midwest operating certificate but that work was halted when negotiations with the union came to an impass.

As knope mentioned, TPG set some very aggressive financial targets for Midwest. While many are quick to blame Hoeksema for what happened last summer, they seem to forget that he was getting his marching orders from Texas. It was TPG that drew a line in the sand with the unions and basically told them that they could either accept the new compensation structure designed for newer and much smaller aircraft or they would be out of work. Hoeksema took all of the heat while TPG remained in the background out-of-sight (that's not to say Hoeksema and company didn't make some big blunders while manging Midwest). The only time we ever heard anything from TPG was when they provided Midwest with additional financing.

There is one other thing worth remembering: Midwest did not want to be sold. AirTran wanted them badly and Midwest resisted for months. Once the hedge funds started buying the Midwest stock looking to make a quick buck, the fate of the airline was sealed. TPG saw some potential in Midwest, but wasn't going to sink $400 + million in cash to acquire the airline. Northwest, worried about a major LLC establishing a large hub in the upper Midwest, kicked-in enough cash to ensure that the Midwest board would have no choice but to expect the combined TPG/Northwest offer.

blucys
Sep 25, 09, 3:39 pm
The more I'm hearing, however, Hoeksema was mostly a figurehead once the TPG deal closed. The strings were pulled elsewhere.

He is still the one that went looking for the "white knight" when Airtran came a' calling...I have no doubt that Hoeksma wanted to continue what he had built, but reality is that he was slow to react to the changes in the industry and had to do what he did...Does the situation change if Airtran got Midwest instead of TPG?

I dont think so and the bitterness of "straightalker" and others on this board would probably be the same...How could it have been different? Is Midwest Airlines just a victim in all of this and employees that were let go collateral damage?

RSVP
Sep 25, 09, 4:21 pm
Would we have been better off today than we were in 2007?

Would a combined AirTran/Midwest still be operating if AirTran had sunk all its cash reserve into the purchase after oil reached record highs in 2008?

One can only speculate.

BlueHorseShoe2000
Sep 25, 09, 4:33 pm
Would we have been better off today than we were in 2007?

Would a combined AirTran/Midwest still be operating if AirTran had sunk all its cash reserve into the purchase after oil reached record highs in 2008?

One can only speculate.

While we'll never know, I think it's telling that AirTran executives basically admitted last year that had the deal gone through the combined airline would have almost certainly been forced to seek bankruptcy protection.

With that said, I think we'd all be better served focusing on the future of the expanding Republic empire instead of speculating on events that never happened or casting blame on individuals no longer associated with the airline. Whether people like it or not, what's done is done.

tvnwz
Sep 25, 09, 4:48 pm
That is sad news for the reamaining flight crews who started this airline. I wonder what church Bedford goes to that would give him enough comfort to sleep at night. I guess thousands of employees and their families and the Milwaukee community unemployment burden do not concern him. The first virtual airline, I thought Lorenzo was immoral.

Probably any church. He is running an airline, not a charity. There is no job in the world that is safe. Just ask the devil. He/she was once an angel until God fired him.

knope2001
Sep 30, 09, 2:28 pm
Assuming pilots and inflight don't work past the point when the final 717 goes, it looks like 12/1 is the hard target.

http://www.jsonline.com/business/62881972.html

Jandorf with the pilots' union believes that YX pilots flying as of 7/31/09 will be integrated into the Republic seniority list.

knope2001
Sep 30, 09, 2:57 pm
The ALPA says 11/3.

http://finance.yahoo.com/news/Midwest-Pilots-Statement-on-bw-1862134552.html?x=0&.v=1

mke9499
Sep 30, 09, 4:07 pm
The ALPA says 11/3.

http://finance.yahoo.com/news/Midwest-Pilots-Statement-on-bw-1862134552.html?x=0&.v=1

This story was just reported by the Wall Street Journal Report on WTMJ Radio, with the tagline that the actions were being taken by Republic in preparation for "the dismantling of the airline," referring, of course, to YX.

8C4IOW
Sep 30, 09, 4:38 pm
This story was just reported by the Wall Street Journal Report on WTMJ Radio, with the tagline that the actions were being taken by Republic in preparation for "the dismantling of the airline," referring, of course, to YX.

If the ALPA or AFA wanted to make an impact on the general public then they should have waited a few days after the Frontier sale.

I think the negative press will be over shadowed by announcements of new routes/services after the Frontier sale is complete tomorrow.

hazelrah
Oct 1, 09, 7:24 am
Moral of the story: Never, ever give management any scope relief or trade scope for pay.

It appears Bedforsd wants to have cake and eat it too. Why should Midwest/Frontier be run as a single unit when it serves managements interests, but be treated as two units when it does not suit management?

It's a good thing that Frontier and Republic pilots are both represented by a single union.

mke9499
Oct 1, 09, 9:37 am
It's official - acquisition complete.

http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=RJET&script=410&layout=-6&item_id=1337539

Press release states that Republic wants to maintain the F9 and YX brands.

uavking
Oct 1, 09, 3:40 pm
Press release states that Republic wants to maintain the F9 and YX brands.

Yeah, and that's it, just the brand. Doubt I'll be flying the "new YX" anytime soon, if at all. FYI, there are some YX beanie babies for sale in the Best Care Club if anyone wants a souvenir.

RSVP
Oct 1, 09, 8:26 pm
Yeah, and that's it, just the brand. Doubt I'll be flying the "new YX" anytime soon, if at all.

Seems I've heard that line before until the price is right.:D:D

mke9499
Oct 2, 09, 9:02 am
Wall Street Journal story:

The next step for Republic Airways Holdings Inc. -- now owner of Frontier Airlines Holdings, which emerged from bankruptcy-court protection Thursday -- will be an unusual cross-pollination of Frontier and Republic's other new acquisition, Midwest Airlines.

Frontier, a unit of Republic Airways, emerged from bankruptcy Thursday.

Republic, previously an operator of commuter carriers that fly on behalf of five major U.S. airlines, now owns two branded, hub-and-spoke lines: Denver-based discounter Frontier and ailing, full-service Midwest, based in Milwaukee. The idea is to keep both brands but stitch together their operations and inject more of Republic's own flight crews and regional planes into the mix.

Republic is taking on this challenge -- and assuming about $1 billion of Frontier debt and aircraft-lease obligations -- as airline competition in Denver and Milwaukee is fierce and the recession is weighing on the industry. Republic paid $109 million for Frontier in a bankruptcy auction at which discount king Southwest Airlines Co. also made an offer but later dropped out.

Frontier is the second-largest operator at Denver, after UAL Corp.'s United Airlines, and faces an expanding Southwest, now the No. 3 player there. In Milwaukee, Midwest and its commuter partners together still handle the most passengers. But budget carrier AirTran Airways, a unit of AirTran Holdings Inc., now is a strong No. 2 and Southwest plans to begin service there in November with a dozen daily flights to six cities.

"Milwaukee has become and in 2010 will probably be one of the most competitive airports in the country," said Barry Bateman, director of the city's General Mitchell International Airport. "I've never seen fares this low." Jay Sorensen, president of airline marketing concern IdeaWorks Co., said neither Denver nor Milwaukee is big enough to support three warring carriers.

Bryan Bedford, Republic's chairman and chief executive, said in an interview that his goals for the new units are to expand Midwest and restore it to profitability by the second quarter of next year, and bring more efficiency and higher profits to Frontier, which used its 18-month stay in court protection to restructure and return to the black.

Some outlines of his plan are known. Midwest and Frontier have begun code-sharing, or selling each other's flights. Their frequent-flier programs now offer reciprocity so passengers can earn and redeem miles on either carrier. Mr. Bedford said consolidation is under way at the 21 cities they both serve, with a reduction of staffers, gates and ticket counters.

Initially, five of Frontier's 136-seat Airbus jets, staffed by Frontier pilots and flight attendants, will begin serving Milwaukee on behalf of Midwest, with more to follow, he said. Five of Republic's 99-seat Embraer regional jets now flying on behalf of Midwest will move to Denver to serve Frontier. The full fleet reconfiguration will be done by spring.

Republic is considering moving several hundred Frontier jobs, possibly to Milwaukee or Indianapolis, Republic's home. It already has announced plans to close a Frontier reservation center in New Mexico and is looking at relocating Frontier's Denver-based mechanics. Midwest's remaining 150 pilots and flight attendants will lose their jobs in November when the last of the airline's Boeing 717s are returned to the manufacturer. By year end, all of Midwest's routes will be flown by Frontier's Airbuses and Republic's regional jets.

Capt. Anthony Freitas, chairman of the Air Line Pilots Association branch at Midwest, said his group, which numbered 400 pilots in early 2008, is now down to fewer than 100 and will go to zero in a month. He said efforts to save jobs by integrating his group with the unionized Frontier aviators or Republic's own unionized pilots have gone nowhere. A Republic spokesman said he hopes those pilots will gain opportunities to fly for Republic later.

Frontier's passengers shouldn't see much difference now that the company, the 10th-largest U.S. airline by traffic, is under new ownership. From time to time, they might encounter a Republic regional jet in Midwest colors on a smaller route.

Midwest's customers, disappointed by a massive downsizing brought on by years of financial troubles, can expect some growth. "We'll have more nonstops to more markets as we roll out the fleet transition," Mr. Bedford said.



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