Major changes at Midwest Continue

Old Feb 4, 08, 10:51 am
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Major changes at Midwest Continue

Midwest airlines has a new COO. The second major change at Midwest and in my estimation one of many in a long string to come.

Midwest Airlines Names Kolshak Chief Operating Officer


http://biz.yahoo.com/prnews/080204/clm039.html?.v=101

Last edited by hazelrah; Feb 4, 08 at 11:05 am
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Old Feb 4, 08, 4:30 pm
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I wouldn't read that much into this one. David Reeve has held dual roles since he was appointed SYX CEO and Chairman of the board in Sept of 2006. According to the press release at that time, the intention was for YX to hire a new Senior VP of Operation. I believe the FL takeover bid may have derailed that effort.

Anyway, it appears that Mr Kolshak will add a lot of experience to the current leadership team.
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Old Feb 4, 08, 5:13 pm
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Originally Posted by truths88 View Post
I wouldn't read that much into this one. .
I don't agree. I think it is very telling; TPG bringing in its choice to run the day to day operations of the company. Interesting, don't you think ,that the former COO is going to run Skyway? Isn't Skyway shutting down?

Originally Posted by truths88 View Post
Anyway, it appears that Mr Kolshak will add a lot of experience to the current leadership team.
I agree his resume is most impressive. Again interesting that he comes from Delta.
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Old Feb 4, 08, 6:10 pm
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Hardly a "major" change, but positive nonetheless. Kolshak has a lot to offer the company.
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Old Feb 4, 08, 6:31 pm
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I think this is the beginning of many changes in management at YX. Don't be surprised Timothy Hoeksema retires in a few years.
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Old Feb 4, 08, 6:35 pm
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Originally Posted by flyYX View Post
I think this is the beginning of many changes in management at YX. Don't be surprised Timothy Hoeksema retires in a few years.
Tim is 61, he could go anytime. Kolshak could be the "heir apparent" they have been looking for.
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Old Feb 4, 08, 7:37 pm
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Heads will roll

Originally Posted by YX802 View Post
Hardly a "major" change, but positive nonetheless. Kolshak has a lot to offer the company.
The number 2 person , in charge of all aspects of daily operations at the company changes and this is not a major change? Interesting spin.

Here is a quote from Mr. Reeve about Skyway - Reeve pointed out that there will likely be opportunities for some employees with Midwest Airlines or SkyWest Airlines. 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," Reeve said. "The 50-seat aircraft will provide us additional seating capacity at about the same cost of operation as the 32-seat aircraft."

Karma
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Old Feb 4, 08, 7:47 pm
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Originally Posted by flyYX View Post
I think this is the beginning of many changes in management at YX. Don't be surprised Timothy Hoeksema retires in a few years.
I agree and if this guy Kolchak performs we could be seeing the heir apparent.
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Old Feb 4, 08, 9:57 pm
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hazelrah,

David Reeve has served as the Senior VP of Operations for Midwest since 1998. In Sept of 2006, he was announced as the CEO and Chairman of the board at Skyway. He has been doing both roles since Sept 2006. He was suppose to have been replaced shortly after he was announced as CEO of Skyway. That never happened.

Until now.

Mr Kolshak retired from DL as COO. He was replaced by a former VP from NW. The new DL CEO is from NW as well. (Actually, the former CEO)

Regardless, it sure looks like a very good pick.
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Old Feb 5, 08, 6:00 am
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Originally Posted by truths88 View Post
hazelrah,

Regardless, it sure looks like a very good pick.
Sure looks to me that TPG has selected an ace, someone who is going to take control and reform the Midwest culture of marginal profitability at best. The Midwest culture and business model is in need of reform. TPG won't put up with it, and if you think its not TPG's choice may I suggest your sadly mistaken.

When yields are trashed on LGA, BOS, DCA,LAX, what is Midwest going to do?

I have to wonder how many of the Midwest apologists and those wearing rose-colored glasses on this board actually fly at all? I'll give you a personal anecdote to illustrate Midwest mismanagement.

I fly frequently (100,000miles/year) and over the last several years have flown on American, Midwest, Northwest, USairways, and Southwest. Every single mainline flight on American,Midwest, and USairways seems to run full. I can't remember the last time I saw an empty seat on a mainline Northwest flight(quite frankly I don't know how they do it). Well, I do have something of an idea Northwest slashed capacity.

On a recent Miidwest (December 2007) morning flight out of DCA, imagine my surprise when I saw the flight was %50 empty, I thought I'd gone through a time portal and landed in the 1990s. There is no excuse for this kind of performance (either cut capacity or introduce some creative fare structure/modeling to fill planes).

This is one example of many why Midwest has a new #2
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Old Feb 5, 08, 6:07 am
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Originally Posted by hazelrah View Post
This is one example of many why Midwest has a new #2
I wouldn't be surprised that he is the new #1. Timothy is just there as a lame duck right now and when the time is right, he will exit into retirement. It is time for new people from the outside not from within the company to start running YX. The Midwest management culture obviously needs to change.
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Old Feb 5, 08, 7:25 am
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This may be a bit of a stretch, but perhaps Mr. Kolshak was hired in part because of his DL experience in putting up with AirTran in ATL. That experience, if nothing else, will help YX compete with AirTran in MKE.
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Old Feb 5, 08, 2:40 pm
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Hazelrah,

Number one, I for one don't have "rose colored glasses". I am well aware of the competition that YX faces this Summer. Number two, I really don't know if you can call it mismanagement that a flight is 50 percent or less full.

You are right though, Joe sure does appear to be a very good pick, but unless he is in charge of marketing, which he is not, then he is going to have a hard time putting butts in the seats.

I believe the creative fare structure/modelling is on the way with the new 99 seat configuration.

Last edited by truths88; Feb 5, 08 at 2:41 pm Reason: wrong word
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Old Feb 5, 08, 4:58 pm
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Originally Posted by hazelrah View Post
I have to wonder how many of the Midwest apologists and those wearing rose-colored glasses on this board actually fly at all? I'll give you a personal anecdote to illustrate Midwest mismanagement.

I fly frequently (100,000miles/year) and over the last several years have flown on American, Midwest, Northwest, USairways, and Southwest. Every single mainline flight on American,Midwest, and USairways seems to run full. I can't remember the last time I saw an empty seat on a mainline Northwest flight(quite frankly I don't know how they do it). Well, I do have something of an idea Northwest slashed capacity.

On a recent Miidwest (December 2007) morning flight out of DCA, imagine my surprise when I saw the flight was %50 empty, I thought I'd gone through a time portal and landed in the 1990s. There is no excuse for this kind of performance (either cut capacity or introduce some creative fare structure/modeling to fill planes).

This is one example of many why Midwest has a new #2
I fly just as much as you do every year (100,000 + miles per year) and I've been on plenty of flights (both mainline and regional) with empty seats. A couple of examples come to mind. In December, I flew ORD-SFO on United. The early morning 767 only had 58 people on board. At the beginning of January, I took an evening STL-ORD flight on United. There were only 7 people on board that flight. This is purely anecdotal evidence. Loads vary by day and season. Just because a flight had a light load one day doesn't mean that the route is performing poorly.

In the case of Midwest, DCA is one of their strongest stations. The loads on this route are fairly consistent month after month after month. One particular flight with a 50% load factor doesn't raise an alarm bell for me. The DCA route has been performing so well that Midwest has been trying very hard to secure slots for additional flights the past couple of years. In fact, DCA is one of Midwest's most profitable stations, probably just a notch below LGA. The route caters primarily to the business traveler and frequency is king.
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Old Feb 5, 08, 5:57 pm
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Dca

Originally Posted by BlueHorseShoe2000 View Post
I fly just as much as you do every year (100,000 + miles per year) and I've been on plenty of flights (both mainline and regional) with empty seats. A couple of examples come to mind. In December, I flew ORD-SFO on United. The early morning 767 only had 58 people on board. At the beginning of January, I took an evening STL-ORD flight on United. There were only 7 people on board that flight. This is purely anecdotal evidence. Loads vary by day and season. Just because a flight had a light load one day doesn't mean that the route is performing poorly.

In the case of Midwest, DCA is one of their strongest stations. The loads on this route are fairly consistent month after month after month. One particular flight with a 50% load factor doesn't raise an alarm bell for me. The DCA route has been performing so well that Midwest has been trying very hard to secure slots for additional flights the past couple of years. In fact, DCA is one of Midwest's most profitable stations, probably just a notch below LGA. The route caters primarily to the business traveler and frequency is king.

Not to mention the entire Wisconsin Congressional delegation.
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