Midway in the news again.

AOG-N-IT

Veteran
Aug 19, 2002
1,132
1
www.usaviation.com
Posted on Wed, Dec. 04, 2002

Midway may fly again for US Airways by January
Associated Press
DURHAM, N.C. - Midway Airlines may take off again by January as a feeder airline for US Airways Express, according to documents filed in federal bankruptcy court.
US Airways said in the documents filed Monday that after six months of negotiations, it has substantially reached an agreement in principle for Midway to become its regional jet partner.
The deal is subject to approval by the bankruptcy courts and the companies'' boards of directors.
Midway filed a motion Tuesday for the agreement to be approved by U.S. Bankruptcy Court Judge A. Thomas Small.
Under the service agreement, Midway must have at least one jet in service by Jan. 1 with up to 18 jets in the air under the banner of US Airways Express by the end of the second quarter of 2003.
US Airways will sell tickets on flights operated by Midway and will provide reservation, ground support and other services for the regional jet service.
The planes will fly to Boston, New York and Washington, D.C., and US Airways has the option to add additional routes and up to 48 additional planes.
Midway will be allowed to display signs on the interior and exterior of aircraft identifying it as the operator of the flight, according to the filing.
US Airways will pay Midway for two years of service up front, then begin monthly payments for the remainder of the 10-year service agreement. Details of US Airways'' payments to Midway were blacked out in the bankruptcy filings.
The plan is key to the reorganizations of both Midway Airlines and US Airways.
US Airways believes that it could not replicate the timing of this additional regional jet service, which is a critical component of its business plan, within its own affiliates during the same time period, the company wrote in its bankruptcy filing.
Midway, which filed for bankruptcy, signed on with US Airways in July as its last chance for survival and subsequently suspended flight operations. At that time, Midway laid off most of its remaining staff, which was down to several hundred from 2,500 last summer.
Officials said in July that some of the pilots, flight attendants and mechanics will get their jobs back when the airline returns to the air. The agreement stipulates that half of the pilot positions must be reserved for furloughed US Airways pilots.
Midway had hoped to take off again in mid-October, but the deadline was pushed back several times as the local carrier worked to meet conditions for the agreement.
 

ForkTime2002

Advanced
Nov 27, 2002
110
0
www.usaviation.com
[STRONG][FONT face="Times New Roman" size=3]Wow,2 years payment up front and one whole jet in service by jan 1st!!![BR][BR]Boy the added revenue of ONE rj is really going to turn things around for us.look out delta, here comes Midway, the army of one![BR][BR]Whos great idea was this?[/FONT][/STRONG]
 

ForkTime2002

Advanced
Nov 27, 2002
110
0
www.usaviation.com
[STRONG][FONT face="Times New Roman" size=3]Wow,2 years payment up front and one whole jet in service by jan 1st!!![BR][BR]Boy the added revenue of ONE rj is really going to turn things around for us.look out delta, here comes Midway, the army of one![BR][BR]Whos great idea was this?[/FONT][/STRONG]
 

OldpropGuy

Advanced
Aug 20, 2002
185
8
------------
US Airways will pay Midway for two years of service up front, then begin monthly payments for the remainder of the 10-year service agreement.....
-------------

Why and how, if we don't have the funds for anything else such as our own RJ's?
 

OldpropGuy

Advanced
Aug 20, 2002
185
8
------------
US Airways will pay Midway for two years of service up front, then begin monthly payments for the remainder of the 10-year service agreement.....
-------------

Why and how, if we don't have the funds for anything else such as our own RJ's?
 

funguy2

Veteran
Aug 20, 2002
1,755
0
You have got to wonder what US Airways' agenda is in resurrecting a bankrupt and non-operating carrier... Particularly when they can expand with any one of their three (or four) wholly-owned carriers, or Chautauqua, or Trans States, even more with Mesa.

Honestly, they already have 10 regional partners (some of which share common ownership like the different divisions of Mesa or the Wexford carriers), they are creating an 11th. Midway would be the 12th. Why is it that these additional RJ's cannot be placed somewhere within these first 11 airlines.

It would seem to make more sense to me to do business with a SkyWest or ACA or Air Wisconsin or any other operating regional than Midway, on the basis that they don't need as much help starting up! That is, assuming those regionals would do business with US Air (I suspect for a 30-50 RJ commitment, they would).

Before you know it, US will be asking Mesa to resurrect CCAir as well... Just to ensure it has more regional partners than anyone!
 

funguy2

Veteran
Aug 20, 2002
1,755
0
You have got to wonder what US Airways' agenda is in resurrecting a bankrupt and non-operating carrier... Particularly when they can expand with any one of their three (or four) wholly-owned carriers, or Chautauqua, or Trans States, even more with Mesa.

Honestly, they already have 10 regional partners (some of which share common ownership like the different divisions of Mesa or the Wexford carriers), they are creating an 11th. Midway would be the 12th. Why is it that these additional RJ's cannot be placed somewhere within these first 11 airlines.

It would seem to make more sense to me to do business with a SkyWest or ACA or Air Wisconsin or any other operating regional than Midway, on the basis that they don't need as much help starting up! That is, assuming those regionals would do business with US Air (I suspect for a 30-50 RJ commitment, they would).

Before you know it, US will be asking Mesa to resurrect CCAir as well... Just to ensure it has more regional partners than anyone!