newsmanhoss

Airliners forum says that YX will cancel all Skyway flying on April 5th and turn all regional flying over to SkyWest. Sounds like this decision will really hurt the smaller communities that have enjoyed easy connections on YX.

mizzou65201

MILWAUKEE, Jan 16, 2008 /PRNewswire-FirstCall via COMTEX News Network/ -- Midwest Airlines (AMEX: MEH) today announced that it will transition the operation of all Midwest Connect flights from Skyway Airlines to SkyWest Airlines as part of its agreement with the St. George, Utah-based carrier to operate 50-seat Canadair regional jets for Midwest Connect. SkyWest will continue to serve regional markets now served by Skyway, using the 50-seat aircraft to fly routes currently served by 32-seat aircraft.

As flight operations transition to SkyWest in March and April, Skyway Airlines will discontinue providing regional flight operations for Midwest Airlines, which will result in the elimination of the positions of approximately 380 Skyway employees -- mostly pilots, flight attendants, mechanics and dispatchers.

Skyway Airlines will continue in an airport services role -- providing Ramp and Dining Services operations for Midwest Airlines and Midwest Connect, and Customer Service operations in Midwest Connect field stations. Over time, Skyway's business will be expanded to offer these types of services to other airlines. The positions of the approximately 750 employees who provide service support functions will not be affected by today's announcement.

The economies of operating the current Skyway fleet of 32-seat Fairchild 328JET regional jets necessitated the change in strategy, according to David C. Reeve, Skyway chairman, president and chief executive officer. In addition to rapidly rising fuel prices, operating the jets has become more costly and complex because the aircraft is no longer being produced.

"This was an extremely difficult business decision in terms of its impact on Skyway employees," Reeve said. "However, it is necessary for the long-term success of Midwest Air Group." He noted that there will likely be opportunities for some employees with Midwest Airlines or SkyWest Airlines, and that the company would provide severance and support to eligible employees whose positions are eliminated.

"The change in strategy will redeploy our resources in a more strategic, cost-effective manner," explained Reeve. "The 50-seat aircraft will provide us additional seating capacity at about the same cost of operation as the 32-seat aircraft."

SkyWest operates a fleet of 15 50-seat regional jets for Midwest Connect as part of a five-year agreement with Midwest that began in April 2007. To support the transition, additional 50-seat aircraft will join the fleet in March and April 2008. Under the agreement, SkyWest provides aircraft, flight crews and maintenance services for the 50-seat aircraft. Midwest Airlines oversees route planning, scheduling, marketing and sales, and also sets and enforces service standards. The aircraft are painted in the Midwest Connect livery and feature Midwest's brown leather seats.

According to Reeve, the airline plans to offer about the same number of seats in Skyway markets, but with slightly less frequency. This will result in some schedule changes; passengers will be notified if their flights are affected.

"SkyWest's experience, excellent record of operational performance and commitment to customer service mirrors our own," Reeve added. "Midwest Connect passengers should expect a smooth transition of service."

Midwest Airlines features jet service throughout the United States, including Milwaukee's most daily nonstop flights and best schedule to major destinations. Catering to business travelers and discerning leisure travelers, the airline earned its reputation as "The best care in the air" by providing passengers with impeccable service and onboard amenities at competitive fares. More information is available at http://www.midwestairlines.com.

flyYX

Well one of my 2008 predictions came true. I just didn't think it would be so soon. I think RHI will be axed too. We'll have to wait and see.

hazelrah

FlyYX - I also saw this coming from miles away. Skyway was just not in the cards and it is easier and cheaper to farm out all work to TPG/Skywest.
DLH service cancelled, MQT service cancelled, EAS service cancelled. Skyway was doomed.

I wouldn't necessarilly say Skyway's loads were deliberately made to look bad for political cover with the unions, but what is the effect of jacking up fares on loads?

I wouldn't worry about RHI, after all Northwest still provides service

lebowski2222

I think this move will hurt cities like Madison, Appleton and others cities with 5 or 6 daily flights. This move will probably cut there schedules to 2 or 3 flights a day

BlueHorseShoe2000

The problem is the economics of the B1900s and the 328 FRJs just don't work in today's environment.

Skyway has been unprofitable for most, if not all, 2007. Midwest has been trying to get away from the B1900 flying for awhile now. The 328 jets, while being a nice aircraft, are expensive to operate.

Midwest has been very pleased with the SkyWest flying so far. From a business standpoint, it makes a tremendous amount of sense to go with one aircraft type. This will create a lot of operational efficiencies and will cut costs significantly.

I suspect that some cities will be discontinued, especially routes flown exclusively with the B1900s. However, Midwest has already replaced select 328 flying with the CRJ in OMA, MSN, CMH and PIT are for the most part loads have improved, so we'll see how other markets respond.

Unfortunately, 300 + people will most likely lose their jobs and I feel bad for all of them. I wonder if Skywest will open a maintenance facility in MKE as a result of the increased flying. If so, perhaps some of these individuals will be able to work there.

whlinder

Makes complete sense. The economics of 50 seaters are pretty bad with oil at 100/barrel so the economics of a 32 seat FRJ must be downright terrible. And the B1900 can only work with EAS subsidies, barely.

flyYX

Posted on JSOnline:

Nearly 400 employees of Midwest Air Group Inc. will lose their jobs, with Midwest Air choosing to hire a Utah-based company to handle all of its Midwest Connect regional carrier flights, it was announced today.

Oak Creek-based Midwest Air, which operates Midwest Airlines and Midwest Connect, is hiring SkyWest Airlines Inc. to take over all Midwest Connect flights to save costs. St. George, Utah-based SkyWest in 2007 began flying 50-seat regional jets under the Midwest Connect name. By March and April, SkyWest will begin flying all Midwest Connect routes with additional 50-seat jets. They will replace Midwest Connect's 32-seat jets, now flown by Skyway pilots, because the larger jets operate more efficiently, the company announcement said.

As a result, 380 employees - mostly pilots, flight attendants, mechanics and dispatchers - will lose their jobs. They work for Skyway Airlines Inc., the Midwest Air subsidiary that operates Midwest Connect.

Around 750 Skyway employees will continue providing ramp and dining services for Midwest Airlines and Midwest Connect, and customer service operations in Midwest Connect field stations. Over time, Skyway's business will be expanded to offer these types of services to other airlines, the announcement said.

"This was an extremely difficult business decision in terms of its impact on Skyway employees," said David Reeve, Skyway chairman, president and chief executive officer, in a statement. "However, it is necessary for the long-term success of Midwest Air Group."

A spokesman for the pilots union at Skyway couldn't be reached immediately for comment.

I hope for the best for the 400 people that will be losing their jobs.

hazelrah

I just don't get it, retrenchment, this is the plan? Oh, that's right, we NEVER saw a TPG/NW plan, did we?

I just find it highly ironic that with all the bashing that went on with the other acquisition that the first move in the new regiem is shuttering Skyway and getting rid of 300 + employees; that and the apparent demise of quite a bit of U.P., Northern Wisconsin flying - great service to the community!

It does make one question other aspects of the non-existent plan. What about future mainline flying? What about new planes? If there were to be new planes and new mainline flying, wouldn't that have been timed with the Skyway news to soften the blow?

BlueHorseShoe2000

The cost of outsourcing the regional flying to SkyWest can be done quickly and cheaply.

Obtaining replacements for the MD80s will take much longer, especially if Midwest wants new aircraft.

Plans change all the time. Since this time last year, oil prices have sky-rocketed, the economy is softening, and Midwest is still stuck wth the B1900s. I'm sure none of that was in their 2007 plans. It appears things won't be much better in 2008, so Midwest has been forced to act quickly to stop the bleeding at Skyway. Businesses are forced to make tough decisions all the time. Skyway was dragging down the entire financial performance of the airline.

Not to beat a dead horse, but I've got a couple of questions for you. Suppose AirTran was successful with the hostile take-over. What would they have done with the small sub-fleet of 328 jets? They were certainly a part of their plans for Milwaukee. They would be forced to confront the very same problems that Midwest is currently facing. Either way, that flying would have been gone.

flyYX

I think if AirTran bought Midwest that Skyway would have been cut almost immediately. AirTran was vague on that topic. But they did promise not to cut any jobs. I don't know if they could have done that while getting rid of Skyway. I see a silver lining in this though... Skyway ground services maybe contracted by other airlines. That could be a source of extra revenue and employment growth.

truths88

Everyone wants a plan. The "plan" right now with oil prices in the 90's, Jet-A upwards of 3.00 and the economy headed or already into recession, is to retool what will work in the future and what will not.

Obviously, 12 FRJ's will not fit in the plan and having a contract carrier do the flying makes more sense in the current enviroment.

Don't even get me started on whether FL would've kept SYX.

As far as MD80 replacements, I agree they have to be replaced. There is no question there. However, based on the near term economy, does it make sense to acquire them now? Would it be better at least for a few quarters to see what happens to the rest of industry?

To me, now is not the time to have a bunch of metal added to the balance sheet with no where good to put them. That may change in the next several months to a year, but right now it is not.

hazelrah

Well, it is a dead horse, but I'll beat it a bit since you ask I honestly don't know what Air Tran would have done with Skyway; almost certainly there would have been changes because Skyway does not really fit with Air Tran. I do believe that w/Air Tran there would have been no layoffs as Air Tran committed to because every Skyway employee would have had a job. Almost certainly pilots and FAs would have been better off.

But it is not about FL is it? It is about Midwest becoming less and less like Midwest every day. And there is a plan, we just haven't been told what it is. So I'll give TPG/NW credit where credit is due - no promises made, none broken.

truths88

Airtran "committed to no layoffs"

And you really believe that? You feel that the FRJ would've been more economical operating for Airtran?

You agree that there would certainly of been changes with SYX. Just what would those changes have been?

lebowski2222

I thought this was a great prediction from KNOPE2001
I think these reductions really hurt YX, business travelers and possibly connecting traffic

Green Bay
5 flights 147 seats goes to 3 flights 150 seats
Appleton
6 flights 192 seats goes to 5 flights 250 seats
Madison
5 flights 195 seats goes to 4 flights 200 seats
Wausau
3 flights 83 seats goes to 2 flights 100 seats
Des Moines
4 flights 128 seats goes to 3 flights 150 seats
Omaha
3 flights 132 seats goes to 3 flights 150 seats
Indianapolis
4 flights 128 seats goes to 3 flights 150 seats
Louisville
2 flights 64 seats goes to 2 flights 100 seats
Nashville
4 flights 118 seats goes to 3 flights 150 seats
Cleveland
4 flights 128 seats goes to 3 flights 150 seats
Dayton
3 flights 96 seats goes to 2 flights 100 seats
Columbus
4 flights 182 seats goes to 4 flights 200 seats
Toronto
2 flights 64 seats goes to 2 flights 100 seats
Flint
4 flights 128 seats goes to 3 flights 150 seats
Grand Rapdis
6 flights 170 seats goes to 4 flights 200 seats


Dropped are Escanaba, Rhinelander, Iron Mountain, Ironwood, Muskegon, Manistee, and St Louis.

Today
72 flights with 2241 seats
Projected
46 flights with 2300 seats