Battle for MKE?

[funguy2]

Seems to be a battle going on in MKE. Perhaps the Sharks smell blood in the water due to Midwest''s financial condition and business model. Recent events:

Increased service from AirTran, including MKE-BWI-BOS:

http://biz.yahoo.com/bw/030325/255161_1.html

Northwest adds nonstop service from MKE to MCO, LGA, DCA, BOS,LAX, and LAS:

http://biz.yahoo.com/prnews/030512/nym078a_1.html

Midwest announces its low-fare concept, including low-fare service to MCO, LAS, LAX, PHX, and DEN:

http://biz.yahoo.com/prnews/030528/cgw021_1.html

Frontier adds DEN-MKE:

http://biz.yahoo.com/bw/030529/295119_1.html

All of this must be putting tremendous pressure on Midwest. Normally, I would think that Midwest could deal with these problems one at a time. But all at once, with their financial condition, high-fare biz pax niche disappearing, and while trying to integrate/finance a new fleet of 717''s. Wow. Seems like quite a bit of work for a small airline. Despite all the accolades, they have serious challenges ahead.

Comments?

 

[LambertMan]

Northwest will only be operating one flight a day to all of the destinations, which bodes well for YX. However, I think you hit the nail on the head, they are gonna try and get YX out while they are down. But here''s the bad scenario for MKE: YX folds, NW keeps service same as before and doesnt beef it up at all (NW has learned before about trying to create a mini-hub at MKE), FL adds a few cities, and in the end, Milwaukee as a city is at a loss. MKE''s average at best O&D and mediocre yield don''t make it a huge moneymaker for any carrier. I think all of the factors you mentioned are just too much for YX to overcome for someone their size. and I think the scenario I suggested before will happen. Just my $.02.