Knope do you work for Midwest? How do you get this info?
Nope, I don't work for Midwest. This was posted by an employee on another board. Internal mass employee communcations like this are really considered "public" and not considered confidential at most companies, and I don't think they'd get in trouble for sharing it.
Quote:
Originally Posted by Tim34
I am not convinced about their statement on competition.
While airlines are pulling back on long haul flying some are adding flights from Baltimore to San Juan.
Who would that be? :-)
Although just about every airline except Southwest is cutting capacity, I do think we'll see some airlines with new markets as others are trimmed...just that the net will be a reduction in flying. (I don't see any new city pairs for Midwest for the forseeable future.)
I too am curious to see if AirTran will keep flying some of their Milwaukee nonstops to the west coast based on the M80 development. I suspect they'll wait a bit just to see what Midwest's new schedule will be. If Midwest drops LAS outright for example (not too likely) I'd be surprised if AirTran didn't restore their 2nd flight and even add #3. Going the other direction, if Midwest maintains MKE-LAX nonstop by putting their code on a restored daily Northwest MKE-LAX nonstop (JUST hypothetical for illustrative purposes!) that would likely lead AirTran to stick with their original plans.
AirTran's plans for fall and winter were made before the M80 news came out. I'm sure they are considering various options and scenarios here at MKE, but I'd guess no decisions will come until they see exactly what Midwest's plans are.
Will there be route/schedule/station changes in 30 days or is that the timeline for changes to be announced? I saw the mention of the MD-80 date being "fall" but does the "30 days" mean they might do changes to the 717/CRJ flying effective in 30 days? I have a mid-Aug. trip booked OMA to BNA..was wondering..
I wouldn't worry about OMA-BNA.
The "30 days" you're speaking of from the memo is the timeframe for "this restructuring" efforts to come together, not for specific changes with immediate effects to customers such as schedule changes.
What they are targeting for 30 days is for all the necessary pieces of the restucturing plan to come together, including wage concessions from union groups, renegotiated lease rates with Boeing, and modifications to the Skywest agreement. Let's say (for the sake of illustration) that the modified Skywest agreement includes reducing the Midwest Connect flying to 15 CRJ aircraft. From that point it would take quite a few days for a new 15-CRJ Midwest Connect schedule to be devised, approved, and published for the public. And that new schedule would likely not start to take effect for several weeks.
What's targeted for "30 days" is for agreements to be hammered out. The results of those agreements would take weeks afterwards to trickle down to where it would affect customers.
Even if your specific flights OMA-BNA will eventually be affected, those changes would probably not go into effect until well after labor day at this point.
Just heard the bad news on TMJ4 TV Station here in Milwaukee. Midwest is asking Flight Attendants to take a 30 - 40% pay cut and Pilots are being asked to take a 50% pay cut. Midwest expects to layoff 200 more workers. Of couse this is from an unofficial source right now. Midwest has no comment at this time. This information could be all wrong so take it for what it's worth.
I did a rewind on the story three times to get it right. Gotta love the DVR!
Pilots' Union advising that Midwest plans to eliminate approximately 50% of current pilot positions, without pay or insurance
About 50% of remaining Captains' positions to be downgraded to First Officer, with resulting pay cuts from 45%-55%
WTMJ 4 reported the same information, although the details were slightly different. The details often get lost a little in the rush to be first with this kind of stuff.
I'd be curious to know what sort of pay cuts they are proposing. Seeing a 45%-55% pay reduction if you are being demoted from captain to first officer is certainly and obviously a blow to those individuals...I don't want to lose sight of that. But what is the pay cut for captains who remain captains? And for FO's who remain FO's?
When there are layoffs among pilots, it's alomst always a matter of X pilots being eliminated as a whole, but it's a little more complicated. Junior pilots leave *and* among the remaining pilots some less-senior captains are downgraded to fill those first officer spots at a lower pay grade. Those downgraded captains would see big pay reductions (due to the layoff-induced downgrade) even if there were zero wage concessions. The "pay cuts of 45-55%" information is a real headline-grabber, and some pilots would in fact see this. But it kind of masks knowing how mild, moderate or severe the wage concessions are. Heck, for those laid off the wage concessions are 100%, but it doesn't really tell us much other than the financial hardship of those specific employees.
Hopefully more complete details will come out. I suspect Tom Daykin at the Journel Sentinel is contacting his usual list of suspects as we speak for tomorrow's edition.
The "30 days" you're speaking of from the memo is the timeframe for "this restructuring" efforts to come together, not for specific changes with immediate effects to customers such as schedule changes.
What they are targeting for 30 days is for all the necessary pieces of the restucturing plan to come together, including wage concessions from union groups, renegotiated lease rates with Boeing, and modifications to the Skywest agreement. Let's say (for the sake of illustration) that the modified Skywest agreement includes reducing the Midwest Connect flying to 15 CRJ aircraft. From that point it would take quite a few days for a new 15-CRJ Midwest Connect schedule to be devised, approved, and published for the public. And that new schedule would likely not start to take effect for several weeks.
What's targeted for "30 days" is for agreements to be hammered out. The results of those agreements would take weeks afterwards to trickle down to where it would affect customers.
Even if your specific flights OMA-BNA will eventually be affected, those changes would probably not go into effect until well after labor day at this point.
Thanks knope for all your postings and info. I had been feeling down from the lack of specifics on where and when all this restructuring would be happening, and with the way people on this message board have been talking since the past few days, was bracing for immediate drastic schedule changes (such as dropping the non-stop MKE-West Coast routes at any given moment and leaving us mere "leisure" travelers out of luck since we don't fit into the bigger plans). Looks like my MKE-SEA non-stop this Friday and return on 7/5 will hopefully remain intact!
50% is a huge cut in wages.... If I put myself in their shoes I would be devastated. Midwest is basically warning the unions if they don't accept these wage cuts they will file bankruptcy. That is how I read into it.
I do wonder if that's the net hit caused by a downgrade from captain to first officer PLUS the overall reduction in scale. If so, some would definitely see this, but it's different than 50% reduction across the board.
Quote:
Originally Posted by flyYX
I did a rewind on the story three times to get it right. Gotta love the DVR!
I blew that one...I was hoping to catch a report on the Brewers and was flipping between 4, 6 and 12, so I lost my ability to zip backwards since I changed channel accidentally in my haste. How did I live without the DVR.
Anyway, I don't want to make light of the hardships that these layoffs will cause. I do wonder what will come of this...if the unions will agree to the concessions. A very possible alternative if the concessions are rejected is Midwest going into chapter 11...which is a real possibility if the restructuring pieces do not come together...in which case the union members probably ends up taking a bath anyway. Not a good situation in any direction.
Thanks knope for all your postings and info. I had been feeling down from the lack of specifics on where and when all this restructuring would be happening, and with the way people on this message board have been talking since the past few days, was bracing for immediate drastic schedule changes (such as dropping the non-stop MKE-West Coast routes at any given moment and leaving us mere "leisure" travelers out of luck since we don't fit into the bigger plans). Looks like my MKE-SEA non-stop this Friday and return on 7/5 will hopefully remain intact!
It's understandable to be confused and concerned. Were Midwest to pull the plug on the M80 flying at any given moment, they'd still have to meet their obligation to those who already purchased tickets. That's a costly thing to do if it means putting passengers on other airlines. So during the rest of summer while flights are booked pretty full it really is in their own best interest
to keep flying as planned during these peak summer months. They may lose money even on flights when the M80 is booked full, but less than if they had to rebook everyone.
Looks like union contract negotiations for YX FAs are scheduled in July 2008; last contract dated July 2003.
Talk about bad timing!
I feel for everyone at Midwest right now and it just doesn't look good at all. I just don't see any bargaining power for the unions here. I can only hope that TPG is going to keep their end of the bargain and eventually invest some capital in Midwest after the restructuring is done. Good luck Midwest!
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Quote:
Originally Posted by Cornhusker
Will there be route/schedule/station changes in 30 days or is that the timeline for changes to be announced? I saw the mention of the MD-80 date being "fall" but does the "30 days" mean they might do changes to the 717/CRJ flying effective in 30 days? I have a mid-Aug. trip booked OMA to BNA..was wondering..
I have two LAS trips in November...time will tell.
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They appear to be shuttiing it down. A restructuring plan, vitrually intact, unloading a big chunk of the fleet, only recently reconfigured, with the ink on the Seabury engagement barely dry. Seabury is good, but they aren't that fast. Meantime TPG, and NW, with a half biliion invested, say nothing. With AirTran blocked, MKE, abandoned by NW, but always a potential problem as various carriers backfilled there, that threat to the big red tail is neutralized.This one has all the earmarks of a scripted play. Too many smart guys saying nothing, with serious money in the deal. It now looks like the fleet footed ex COO leaving town after a short visit, to take a lesser job, was act one. As for Kansas City, no full service carrier (Braniff, Eastern, USAir) has ever made a living at what is arguably one of the best designed and located hub airports around. AirTran will get the door prize. Those scarce 717 planes, which will fit nicely where their deferred 737's would have, provided they stay out of MKE. As for the customers...don't quit your night jobs. You'll need them to pay for the fares.
I have come to my own conclusion like others in this forum that Mike Boyd just loves to see his name in print all over the internet. I bet he googles his name everyday just to see who is talking about him. I would like to ask one question to this bozo.
My main problem with Boyd is that he spends an inordinate amount of time hurling gratuitous insults at various targets (mainly other journalists and aviation consultants). Sometimes fully half his column is just ridicule and name-calling, and only half is anything of real substance. The guy just has no class.
I would love for someone else in the aviation industry (maybe Patrick Smith at Salon?) to finally call Boyd on some of his BS and his childish behavior.
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Quote:
Originally Posted by deelmakur
Meantime TPG, and NW, with a half biliion invested, say nothing.
It's a grand game, isn't it? Actually I love how TPG has played this. Leave the same guy in charge( as a figurehead) who was running Midwest into the ground. Let him really fail, and then ah shucks we need concessions or else BANKRUPTCY. Better yet the same guy is in charge to blame! They are such a nice bunch of guys at TPG, of course they'll provide financing, if you take a %40 paycut.
Quote:
Originally Posted by deelmakur
It now looks like the fleet footed ex COO leaving town after a short visit, to take a lesser job, was act onethey stay out of MKE
"The fleet-footed COO" LMAO. Old Joe saw the numbers and figured to git while the gettin' was good.
