Midway deal off?

Rob

Senior
Aug 19, 2002
402
0
The DOT has stripped Midway of 2 DCA slots and 12 LGA slots (1 and 6 departures), saying that under the U-Midway deal the slots would become de facto U slots and U does not qualify as a new entrant for AIR-21 slots. DOT will reaward the slots to another carrier in a new proceeding.
This will probably kill the deal with Midway, since DCA and LGA were the assets U most wanted.
 
Probably here:[BR][BR][A href=http://dmses.dot.gov/docimages/pdf1a/198751_web.pdf]http://dmses.dot.gov/docimages/pdf1a/198751_web.pdf[/A][BR][BR]Also, I think this is a clear signal that U will not get the slot exemptions for DCA-SFO, because the DOT does not consider U a new entrant at DCA.
 
motnot is right. DOT docket 12975, if you want to keep up with the case.
 
As I understand it, Midway needed a loan to get the rjs back and the business plan justifying the loan called for the planes to start by flying RDU-LGA and -DCA, the routes most likely to make money. Without their best routes, the loan probably won't be available to back the plane lease. If there aren't any planes, what interest would U have?
 
FWIW, Midway stock declined to 2 cents a share today.
 
[FONT face=Times New Roman size=3]Midway is in bankruptcy and as such there are no guarantees, but US Airways Senior VP, Employee Relations, Jerry Glass; Senior VP, Corporate Development, Bruce Ashby; and Director of Labor Relations - Flight, Tony Bralich addressed the ALPA MEC on Wednesday, November 6. According to the ALPA code-a-phone, management told ALPA Midway Airlines should begin operating in the first quarter 2003. Midway is currently the only affiliate carrier that has agreed to parti****tion in Jets for Jobs. Discussions with Chautauqua and Mesa are continuing.[BR][BR]Chip[BR][/FONT][BR]