From Airliners.Net

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To: All Midwest and Skyway Employees
Date: January 20, 2009
From: Corporate Communications
Subject: Arbitration Ruling

As you know, on Sept. 3, 2008, Midwest Airlines entered into an airline services agreement with Republic Airlines to operate a fleet of Embraer 170 aircraft under the Midwest Connect brand. The Air Line Pilots Association subsequently filed a grievance, contending that the arrangement was a subcontract that violated our collective bargaining agreement with the pilot group. The grievance was submitted to the System Board of Adjustment for review. The board has issued its decision denying the grievance.

The board concluded that our arrangement with Republic Airlines to operate the Embraer 170s is permissible under our collective bargaining agreement with the pilot group. Specifically, the board found that the arrangement is a legitimate codeshare agreement, and further found that our collective bargaining agreement with the pilots provides Midwest the unrestricted right to engage in codeshares. Accordingly, the board ruled there was no violation of the labor agreement