Midwest Restructuring
 

Posted on JS Online:

FRIDAY, June 13, 2008, 10:53 a.m.
By Tom Daykin
Midwest Airlines plans restructuring

Oak Creek-based Midwest Airlines Inc., facing record prices for jet fuel, is working on a comprehensive restructuring plan.

Midwest has hired aviation consulting firm Seabury APG to help create the plan, according to a memo to employees from Chairman and CEO Timothy Hoeksema. He told employees the restructuring work will be completed within several weeks.

"I remain confident that we are up to this challenge," Hoeksema said.

Company spokesman Michael Brophy said details of what Midwest is considering would not be released at this time.

Midwest, like other carriers, is reducing routes and trimming its work force because of soaring fuel costs. In April, Midwest said it would cut 109 employees, amounting to a 3.5% work force reduction.

Like all carriers, Midwest is going to have to come up with additional ways to bring in revenue. Hopefully they will be more creative than some of the other carriers. The next six months or so will be very interesting.

I wonder how drastic this restructuring will be? I think they will pick on the least performing Midwest Connect routes and they may even ground all MD80 flights.

A number of carriers have parked their MD80 aircraft. Guessing that this will become a very common practice in the industry, including at Midwest. The reconfiguration of the 717 will increase capacity, while reducing fuel expense, over the MD80.

If YX does park the MD80 fleet, they will in essence concede much of the MKE west coast/leisure traffic to AirTran, at least for nonstops this summer.

Additional info:

http://www.biztimes.com/daily/2008/6...ructuring-plan

It might make sense to dump the MD80 and rebuild the West Coast with more fuel efficient B737 aircraft in late 2008 or early 2009. I tend to believe there is that type of aircraft available to lease in the market today. AirTran is scaling back MKE after Labor Day anyway, so I don't see them as a big threat right now. But if Midwest doesn't get their act together for the 2009 spring/summer season, then AirTran will come back and put the final nail in the coffin.

$2.00 per cookie maybe.:D:D:eek:

I don't know if Midwest is in a position to take on any new aircraft at all at this point.

It would seem pretty unlikely that YX would stop serving the West Coast nonstop from Milwaukee, but if it came down to doing that to save the airline, they'd have to do it and let AirTran handle the lower-yielding leisure traffic anyway. With no YX service to the west coast, AirTran could change their minds and keep some service around post-Labor Day.

We'll have to see what they decide to do. 717 service out west from MKE would be nice, but the loads and the headwinds would have to be light if they plan on having reliable nonstop service. Travelers wouldn't like routine fuel stops in DEN, SLC or LAS. During strong headwinds, heavily loaded MD80s can't even make it to the left coast nonstop.

It was not that long ago that NW had nonstop service between MKE and LOS, LAX, PHX, LAS...maybe they will resurrect some of the service, utilizing the code share agreement with YX.

Oh great...I'm taking my family of 5 (3 first-time flyers) on a MKE-SEA non-stop flight from 6/27-7/5 and have spent tons of money on nonrefundable accomodations and travel reservations. I'm just praying that they don't cancel the MD80 flights....we don't need another fiasco!

Relax everyone. Midwest has not done anything yet. The only year round non stop west coast flight out of MKE is LAX. Big deal. If cutting LAX will save Midwest, I say that it is well worth it. I doubt that Midwest will cut more flights out of MKE as long as other carries threaten to add service. They may cut flights out of Kansas City though. Midwest Air will get through this. ^

On a side note I am flying to MKE tomorrow on FL can anyone tell me if the new C concourse is nice?

This is the Midwest forum, we wouldn't know about Concourse C, Traitor!

Would you stop being such a tool.

Overall it's fairly nice. Where they did goof is not significantly improving food service(that also could be said for concourse E). At the heart of it Milwaukee and the state needs to consider a new terminal.