Midway is Delayed again

[AOG-N-IT]

Midway Airlines will not be joining the USAirways ranks until January 15th...at the soonest now.
Issues are holding things up...as well as obtaining the Hot Item that the needed RJ''s have become.
http://rdu.news14.com/content/headlines/?A...D=17441&SecID=2

 

[AOG-N-IT]

Is anyone else begining to have thier doubts about Midway ever flying again?

I'm pretty well convinced that Judge Smalls is going to throw them into Chapter 7 (Liquidation)..if they do not have a business plan to show him prior to January.

I'm also starting to have doubts about MDA ever taking place too....any thoughts on this?

 

[AOG-N-IT]

The RJ thing is a no joking matter..that's for certain!!

The company was talking about the need for more RJ feeds as far back as 4 years ago..We talked..others bought!!

UA has the same problems we have...just on a much larger scale...but the RJ's at ACA and the others aren't changing thier bottom line.

I wonder how much of this stuff is an actual need?...and how much of it is just another place to assign blame for our past short-sightedness?

Had a true vision been in the mix?..PSA would have been getting RJ's instead of the DO-328's they got..when others like ASA and ACA were hot on the RJ issue.

CCAir was even looking at RJ's prior to the MESA buyout...of course looking and buying is a different as Rich and Poor. CCAir did go as far as to send the VP of Ops to the roll-out ceremony in Germany for the DO-328Jet...and as we know, nothing ever came from it.

CCAir on another sad note..will be ceasing operations on Monday November 4th...To all the good folks remaining until the end..I wish you a speedy return to the job market!

 

[airbrush]

With regards to MDA, the latest information indicates a late 2003 or early
2004 startup at the earliest. This presumes, of course, that all the issues currently holding things up are resolved, that the aircraft are available at the time and in the numbers required (ERJ-170 still not scheduled for certification until 2Q 2003....delivery times?), that U emerges from Chap 11 and obtains the required financing, etc....
All of this to obtain the aircraft that are supposed to be the salvation of US Airways, several years behind the competition, who continue to take deliveries and aggressively deploy them while we tread water (or, TAKE ON water...).
Question is, can U survive until MDA/Midway/WO's/Mesa/whomever can put the RJs in operation, and can the markets vacated for over a year be reclaimed?

Tick, tick, tick.........

 

[AOG-N-IT]

airknocker, I realize that Midway doesn't have anything as far as actual airline assets to speak of. The problem is presenting a working business plan to Judge Smalls...and securing the needed financing to lease the needed RJ's

U did loan money to Midway..and it's tied up on default terms regarding thier Gates and Slots , mainly in DCA and LGA.

I don't have any recall regarding Wexford actually ponying up any money? Wouldn't that work against them by doing so?...Could that same money not buy more RJ's for thier owned companies...and fill the void with Chataqua instead?

 

[airknocker]

Midway exists in name only, no planes, every piece of ground and office equipment was auctioned off in September, which just leaves slots and gates. Didn't U loan them 3.5 million and the Wexford Management; aka Republic, Chautauqua and Shuttle America, also loan them 6 or 8 million early this year. I understand our favorite BK judge is finding questionable items in U books. Who's on first?

 

[dashflyer]

Unfortunatley tonight is the last night for CCAir. I have the unpleasurable task of ferrying up to CVG tomorrow morning to operate the first flight out of CVG to CLT. I wish things could have turned out better. I'm gonna miss the CCAir folks. They were a great bunch!

 

[RDU Jetblast]

From the Raleigh News and Observer:

January date set for Midway


By DUDLEY PRICE, Staff Writer


MORRISVILLE -- Midway Airlines' plan to return to the sky has been delayed until January.

The Morrisville-based airline, which has been grounded since mid-July, wanted to become airborne in October as a regional feeder airline for US Airways but moved slower than expected toward meeting requirements. Midway now isn't expected to resume flights until Jan. 15, US Airways spokesman David Castelveter said Friday.

We are moving forward with our plan to work with Midway Airlines as a US Airways Express carrier, Castelveter said. We still plan to work with Midway Airlines as an express carrier ... in early January.

The two airlines, both in Chapter 11 bankruptcy protection, missed their own timetable for implementing the deal. Midway, once the Triangle's busiest carrier, ceased flights July 17 but planned to offer flights from Raleigh-Durham International Airport to three northern cities in October provided it met the requirements of US Airways.

US Airways told Midway it needed agreement from unions representing its pilots and flight attendants, leases on 18 regional jets and a $5 million security loan for working capital by Aug. 31. When Midway got the union approvals on time but not the loan or jetliner leases, US Airways extended the deadline to Oct. 31.

Castelveter declined to comment whether Midway had the loan or jetliners. Midway Chief Executive Bob Ferguson did not return a phone call, and Midway attorney Jeb Jeutter could not be reached.

Midway said two weeks ago it was negotiating with lessors for the planes and potential investors.

But some industry experts say Midway might be having trouble leasing the 50-seat regional jets, which are in high demand by airlines who want to fly smaller planes because fewer passengers are buying tickets.

The deal with US Airways is important because it will be the centerpiece of Midway's reorganization plan showing how the company, which has been under Chapter 11 protection for 14 months, expects to operate as a viable business. Midway initially planned to have a reorganization plan by Sept. 1 but missed that self-imposed deadline.

Last month, U.S. Bankruptcy Judge A. Thomas Small gave Midway until Jan. 30 to submit a plan. If Midway can't show how it will be a sustainable business, the judge could dismiss the case or convert it to Chapter 7 bankruptcy and order a sale of assets to satisfy creditors.

US Airways, the second-busiest carrier at RDU, on Friday reported that its net loss for the third quarter narrowed to $335 million as the company cut flights, eliminated jobs and reduced its debt. Sales fell 12 percent to $1.75 billion.

Staff writer Dudley Price can be reached at 829-4525 or [email protected].

 

[chipmunn]

The DOT will not issue an operating certificate to an airline in bankruptcy because the government has seen to many companies fail during the process.

The DOT's decision is blanket policy and does not reflect on the viability of MDA. MDA is now expected to start-up in late 2003 or early 2004 because the company does not want to commit funds to acquire RJs with the threat of war and the enormous revenue fall off. Siegel is sort of storing the acorns.

Reports indicate on October 30 Dave Siegel asked the ALPA MEC to extend the provisions of LOA 79 to allow greater than 70 affiliate non-J4J RJs and to permit 70-seaters.

The ALPA MEC has scheduled a special MEC meeting for November 6 to discuss this issue and sources believe ALPA will provide the company with further RJ authorization for 50 and 70-seat affiliate carrier RJs.

The MEC is also going to evaluate the underfunded pension problem and sources believe the company could see additional financial relief in this important area.

We will know more next week from the Wednesday MEC meeting, Thursday's Omnibus Hearing, and the November 14 deadline for Equity Plan Sponsor bidders.

Chip

 

[delldude]

GO TO USAVIATIONRUMOR.COM

 

[Eris]

[blockquote]
----------------
On 11/2/2002 9:16:02 PM chipmunn wrote:

...Siegel is sort of storing the acorns.

...Dave Siegel asked the ALPA MEC to extend the provisions...

The ALPA MEC has scheduled a special MEC meeting for November 6 to discuss this issue...

The MEC is also going to evaluate the ... pension...
----------------
[/blockquote]

Ahh...the squirrels and the acorns.

Is this like the story in Animal Farm, where one group of animals were more equal than the others and were able to convince the others why all the acorns should be kept for safe keeping in their mire, instead of the barn?

 

[wings396]

The company was talking about the need for more RJ feeds as far back as 4 years ago..We talked..others bought!!

We had RJ's then..they were called F-28's and F-100's..