I've actually been thinking about this scenario as well. Up until a month or so ago there were rumblings from internal sources that some connecting-of-the-dots would occur between existing Midwest destinations and increased frequency in existing markets. However, given the huge spike in oil prices recently and the softening economy, it makes perfect sense to cut-back capacity, especially in lower yield markets.

Despite the MD80s being fuel hogs, I wonder if Midwest has any hedges in place for 2008. They actually did a fairly decent job of managing fuel prices during 2007. Without the disclosures and management comments that happened when Midwest was a publicly traded company, it's very difficult to know how bad things really are. Even if they do have fuel hedges or collars in place, there's no doubt Midwest is feeling some pain.

Assuming that the MD80s are parked, I think Midwest still has an issue on their hands. Obviously the 717s are much more fuel efficient. However, the reconfiguration of these planes scheduled to take place later this year is still problematic. Yes, the aircraft will have more seats and therefore lower fare buckets available for purchase. Yet, a significant portion of the cabin will still be geared towards higher fare business/premium passengers. That works out fine in traditional business markets like LGA, DCA, or DFW. But what about stations like MCO, RSW, or PHX? Are the fare levels and traffic composition sufficient enough to warrant that kind of service?

Some other things to think about:

a) Midwest has publicly stated that the 737 or A320 are simply too expensive for the company at the present time. With airlines going belly-up or cutting back of service significantly, could an opportunity exist for Midwest to get some gently used planes on the property to replace the MD80s?

b) What if Northwest re-instated non-stop flights to MKE-SEA/SFO/LAX/LAS/PHX and had a full code share with Midwest? The two carriers could even work together closely in MKE to help transfer connecting passengers, baggage, etc. Passengers would fly non-stop from MKE or connect in MCI on Midwest metal. This would Northwest to retain market share at Mitchell and benefit regular passengers of both carriers.

This is all speculation of course, but not that far fetched either.