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Quote:
Originally Posted by knope2001
What happened to that $150 million unrestricted cash?
The implication is that Midwest must have lost most of their $150m in cash and now is coming to the state for money. It doesn’t work even vaguely like that. Corporate finances work very differently than household finances, and them asking for financial assistance says nothing about their cash level.
If Midwest is looking for taxpayer bailout, assitance, call-it what you will, then the government should know Midwest's financial situation. Presumably there is at least some idea that taxpayer funds will be repaid or that money is not being thrown down a rathole.
If Midwest is looking for taxpayer bailout, assitance, call-it what you will, then the government should know Midwest's financial situation. Presumably there is at least some idea that taxpayer funds will be repaid or that money is not being thrown down a rathole.
Just heard that Midwest is telling travel agencies revised flight schedules will be finalized by the end of next week. Any customers booked on flights that are being dropped by YX will be re-accommodated, either on other YX flights (connecting at MCI, if necessary), or on other carriers. If the revised itinerary is not acceptable to the customer, a full refund will be issued.
With cut-backs throughout the industry, reduced capacity, and escalating airfares, re-booking, especially to prime destinations at peak travel times, looks difficult, at best.
I think Midwest should just convert all the 717s to 117 seats and be done with it. With contraction happening in the industry this fall the routes left will be packed with passengers and Midwest can't afford not to offer more seats on their 717s. Yields will go up and the red ink will lessen. We have to face it, the 717 was never designed to be an 88 seat aircraft and Boeing pointed that out to Midwest. If Midwest wanted all 2x2 seating they should have pursued aircraft designed for it... Like Embraer Jets. I think Midwest can survive but they have to change their mindset and become more like an LCC but keep the great customer service, enhance Midwest Miles Program and the cookies. The cookie I can do without, but it seems important to other people. TPG will probably finance an MD80 replacement 1-2 years from now and Midwest will be able to add MKE - West Coast routes again. They may have to put up with AirTran taking those routes or codeshare with NWA/Delta until then.
[quote=mke9499;9985469]Just heard that Midwest is telling travel agencies revised flight schedules will be finalized by the end of next week. Any customers booked on flights that are being dropped by YX will be re-accommodated, either on other YX flights (connecting at MCI, if necessary), or on other carriers. If the revised itinerary is not acceptable to the customer, a full refund will be issued.
QUOTE]
I noticed new schedules were loaded this morning and my SFO-MCI flight this winter changed to a 717.
I noticed new schedules were loaded this morning and my SFO-MCI flight this winter changed to a 717.
The SFO-MKE flight you are seeing probably represents the annual change due to the off-peak season for SFO. I do not believe that flight schedules representing cut-backs due to the current economic environment are yet posted.
Flights for MKE-LAX, MKE-FLL, etc., are still in the rez system flying MD80 aircraft. Stay tuned later this week, for the upcoming changes.
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Quote:
Originally Posted by mke9499
The SFO-MKE flight you are seeing probably represents the annual change due to the off-peak season for SFO. I do not believe that flight schedules representing cut-backs due to the current economic environment are yet posted.
Flights for MKE-LAX, MKE-FLL, etc., are still in the rez system flying MD80 aircraft. Stay tuned later this week, for the upcoming changes.
With the exception of the second frequency flown last summer, MCI-SFO has always been flown with an MD80, even during the winter months. This represents one of the schedule changes as a result of the MD80s being parked.
SFO can suffer from some pretty terrible ATC and weather delays. Because of this, Midwest has always been reluctant to send the 717 on the MCI-SFO mission as it can really push the limits of the aircraft during adverse conditions. They really don't have a choice this year, so we'll see how reliable the 717 performance is on this route.
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I think Midwest should just convert all the 717s to 117 seats and be done with it. With contraction happening in the industry this fall the routes left will be packed with passengers and Midwest can't afford not to offer more seats on their 717s. Yields will go up and the red ink will lessen. We have to face it, the 717 was never designed to be an 88 seat aircraft and Boeing pointed that out to Midwest. If Midwest wanted all 2x2 seating they should have pursued aircraft designed for it... Like Embraer Jets. I think Midwest can survive but they have to change their mindset and become more like an LCC but keep the great customer service, enhance Midwest Miles Program and the cookies. The cookie I can do without, but it seems important to other people. TPG will probably finance an MD80 replacement 1-2 years from now and Midwest will be able to add MKE - West Coast routes again. They may have to put up with AirTran taking those routes or codeshare with NWA/Delta until then.
I've thought a bit about whether they should convert to all coach and try to cram close to 125 seats on the 717s. One problem is that they would have to add a 3rd flight attendant to each flight, not to mention all the re-branding expense. I'm sure TPG and Seabury will take a look at doing something like this though. But my bet is that YX moves to focus mostly on business traffic going forward.
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Quote:
Originally Posted by mke9499
Milwaukee Journal Sentinel reporting that Midwest may be seeking "financial assistance" from the State of Wisconsin:
"Midwest Air Group has been in contact with state officials about possible financial assistance, company spokesman Michael Brophy said. The talks are preliminary, and its unclear what, if any, aid the state might be able to offer. Midwest Air borrowed $4 million from the state in 2003 during an earlier restructuring. Payments on that loan aren't due to begin until October of this year, said state Department of Commerce spokesman Tony Hozeny."
With tax revenue obviously down, will the state lay out additional risk in order to help YX survive? It will be a difficult tightrope for Doyle to walk, especially with prior debt out there.
SunCountry made a similar play in Minnesota as well. I don't know what the states can reasonably provide without costing taxpayers a lot of money in a time where there isn't a lot of excess to go around.
I've thought a bit about whether they should convert to all coach and try to cram close to 125 seats on the 717s. One problem is that they would have to add a 3rd flight attendant to each flight, not to mention all the re-branding expense. I'm sure TPG and Seabury will take a look at doing something like this though. But my bet is that YX moves to focus mostly on business traffic going forward.
Another problem if they do all the planes is that MCI-SFO is marginal with the current configuration. More passengers and more luggage will make it that much harder.
the decision by the MEH board to reject the airtran offer will go down in the business school textbooks as one of the worst business decisions in history. Regrettably, time is closing in on this company. I dont see any entity coming to the rescue, and one can not see how public officials could give a loan that they know will not be repaid.
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Quote:
Originally Posted by whlinder
I've thought a bit about whether they should convert to all coach and try to cram close to 125 seats on the 717s. One problem is that they would have to add a 3rd flight attendant to each flight, not to mention all the re-branding expense. I'm sure TPG and Seabury will take a look at doing something like this though. But my bet is that YX moves to focus mostly on business traffic going forward.
Yes, but a FAs wages really are not a huge driver against the bottom line. Figure $21/hr. double it to load for benefits = $42hr = additonal $84 cost on a 2 hour flight.
If you move to an environment of selling all beverages they'll need the extra FA . Sound ludricrous? Maybe but with Seabury everthing is on the table.
Why have the seating changes on the 717s been delayed several times? Is it just because of problems with testing (I don't think so)?
Yes, but a FAs wages really are not a huge driver against the bottom line. Figure $21/hr. double it to load for benefits = $42hr = additonal $84 cost on a 2 hour flight.
If you move to an environment of selling all beverages they'll need the extra FA . Sound ludricrous? Maybe but with Seabury everthing is on the table.
Why have the seating changes on the 717s been delayed several times? Is it just because of problems with testing (I don't think so)?
I heard (and I have nothing to back this up) that the all 2x2 seating in the 717 is actually heavier than the 3x2 seating the plane was designed for. Those wide load 2x2 seats must have a lot more support material in them.
Another problem if they do all the planes is that MCI-SFO is marginal with the current configuration. More passengers and more luggage will make it that much harder.
True however you also have to consider the weight of the 2x2 seats vs. 2x3. IIRC those 2x2 seats weigh more than standard coach seats.
Quote:
Originally Posted by oswaldjacoby
the decision by the MEH board to reject the airtran offer will go down in the business school textbooks as one of the worst business decisions in history. Regrettably, time is closing in on this company. I dont see any entity coming to the rescue, and one can not see how public officials could give a loan that they know will not be repaid.
The MEH board got more money with less risk (all cash vs. cash + AAI stock which has nosedived). Where was the bad business decision? Oh right, with NW and TPG in putting up that cash to purchase the company. They are the insane ones.
Quote:
Originally Posted by hazelrah
Yes, but a FAs wages really are not a huge driver against the bottom line. Figure $21/hr. double it to load for benefits = $42hr = additonal $84 cost on a 2 hour flight.
If you move to an environment of selling all beverages they'll need the extra FA . Sound ludricrous? Maybe but with Seabury everthing is on the table.
Why have the seating changes on the 717s been delayed several times? Is it just because of problems with testing (I don't think so)?
In addition to the FA cost though are those extra ~20 seats going to provide a total increase in revenue to the company particularly when they make the product less competitive?
the decision by the MEH board to reject the airtran offer will go down in the business school textbooks as one of the worst business decisions in history. Regrettably, time is closing in on this company. I dont see any entity coming to the rescue, and one can not see how public officials could give a loan that they know will not be repaid.
I disagree. The MEH BOD did due diligence when they went out and looked for other interested buyers of Midwest Airlines. The BOD got the best deal possible for the shareholders of MEH Stock. The Stock Market is all about making money. So the sale was a big success story. On the other hand, was this the best course for the stakeholders of Midwest Airlines? I don't know because neither side was expecting $145 per/bbl oil in mid 2008. Midwest is making drastic cuts now to survive... AirTran is holding growth to zero right now, but I suspect they may also start to furlough pilots and flight attendants. In the end with all the contraction going on in the industry, AirTran was better off without MKE as a hub... If they survive the oil crisis, they have bigger airports on their radar to expand into. MKE is so yesterday to AirTran.
. Sound ludricrous? Maybe but with Seabury everthing is on the table.
