Midwest Announces Creation of Low Fare Carrier

N905AW

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Aug 21, 2002
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It looks like Midwest Airlines is joining the growing list of carriers looking to create low fare carriers within their present route structure. It appears that the fleet will initially consist of the airline''s present MD-80 fleet, and be configured in a 3 x 2 configuration. They will also offer their reknown baked on-board chocolate chip cookies.
However, also announced in the press release is the closure of the Kansas City reservation center, potential reduction and closure of certain Midwest Connect routes, as well as the furlough of 430 employees. All the information can be found at:
http://biz.yahoo.com/prnews/030226/cgw076_1.html
 
What the hell is going on in this industry lately?

Let's see, no one has ever created an "airline within an airline" that works, and all the airlines are in the poorhouse, yet, they want to keep beating the dead horse to see if it will get up and run?


Those that fail to understand the mistakes of the past, will be forever condemned to repeat them....
 
I am STUNNED!! Midwest has a unique product/service to offer and now they will be just like everyone else. With no difference between Midwest and any other carrier, I fear this may be the end of them. Midwest does not have the name brand recognition to be changing their product at the drop of a hat.
 
They're only putting the two-by-three seating on five of their M80's and deploying them on existing low-yield routes like LAS and MCO. The seat pitch will still be more than normal...somewhat similar to AA's More Room.

They're still going to have the trademark two-by-two seating on all their other mainline routes. The five M80's will be branded as a different airline to try and keep the distinction between the two.
 
Seems like this concept (Low cost airline within an airline) is gaining momentum even though it hasn't worked since the original Midway Airlines tried it (remember Midway Express (leisure to FLA) and Midway Metrolink (biz destinations)?) I think something is going on here... Midwest seems to small to do the airline w/in an airline concept.

It seems like Midwest is between a rock and a hard place: The biz traveller that we used to know, and which was Midwest's niche, is dead. So what does Midwest do? I think they come out of a transfermation looking a lot more like AirTran... but that is just my guess...
 
Hmmm... That raises an intersting possibility. Would an AirTran acquisition of YX make sense, especially if it was done in conjunction with a prepackaged YX Ch. 11 filing? I know YX just got their first 717, when are the deliveries scheduled to be completed?
 
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On 3/3/2003 1:49:34 AM 7.5victim wrote:

Hmmm... That raises an intersting possibility. Would an AirTran acquisition of YX make sense, especially if it was done in conjunction with a prepackaged YX Ch. 11 filing? I know YX just got their first 717, when are the deliveries scheduled to be completed?
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I kinda don't think so for a few reasons:

(1) Other than the common 717's, there's no really nothing all that compatable about the two airlines.

(2) The 717's are coming in the premium YX 2-by-2 seating. The low-fare carrier YX is planning will use M80's in standard 2-by-3 seating.

(3) It's a buyer's market, so AirTran can probably get all the 717's they want without needing to purchase an airline. And if YX shuts down, all 25 of their 717's will be looking for a buyer.

(4) The YX management would most probably scratch and claw at any slim chance of remaining viable and independent before they'd consider selling. By the time they see selling as the only option it would probably be too late.