||Currently Not Operational
||+1 (414) 570-4000
||+1 (414) 570-0199
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MWX-2005 9 MTHS
MWX-2012-09 -MILWAUKEE HUB
ESTABLISHED IN 1969 AND STARTED OPERATIONS IN 1984. DOMESTIC, SCHEDULED & CHARTER, PASSENGER & CARGO, JET AIRPLANE SERVICES.
6744 SOUTH HOWELL AVENUE
OAK CREEK, WISCONSIN 53154, USA
USA (United States of America) was established in 1776, it covers an area of 9,363,123 sq km, its population is 280 million, its capital city is Washington DC, and its official language is English.
OCTOBER 1995: 3RD QUARTER = +$5.55 MILLION (+$1.16 MILLION) (NET PROFIT).
SUBSIDIARY ASTRAL AVIATION.
DECEMBER 1995: 2 DC-9-32'S (JT8D-9A), LEASED, EX-GARUDA INDONESIA (GIA), 1 FOR CHARTER & OTHER TO EXPAND SERVICE TO BOSTON, DALLAS & PHILADELPHIA. CURRENTLY OPERATES 19 DC-9'S (JT8D-9A).
JANUARY 1996: 4TH QUARTER = +$2.9 MILLION (+$0.75 MILLION): +12.2% (ASM) CAPACITY. 1995 = +$19.1 MILLION (+$6.7 MILLION): +18.2% (RPM) PASSENGER TRAFFIC, 64.1% LF LOAD FACTOR (+3.3).
FEBRUARY 1996: 3RD DC-9-32 (JT8D-9A) (47730) EX-GARUDA INDONESIA (GIA) DELIVERY. HUSHKITS FROM ABS PARTNERSHIP & DOES "C" & "D" MAINTENANCE CHECKS IN-HOUSE.
APRIL 1996: NONSTOP "MOONLIGHT," LOS ANGELES (LAX) TO MILWAUKEE & MADISON WISCONSIN TO LAS VEGAS.
KIMBERLY-CLARK TO DIVEST ITSELF OF 20% OWNERSHIP.
1ST QUARTER = +3.4% (RPM) TRAFFIC, -2.85 (ASM) CAPACITY, 63.3% LF LOAD FACTOR (+3.8): +$2.84 MILLION (+$1.83 MILLION) (+54.7%).
NOW HAS 23 DC-9'S.
MAY 1996: 1 DC-9-32 (47601), EX-GARUDA INDONESIA (GIA), HUSHKITS BY ABS PARTNERSHIP & "C" MAINTENANCE CHECK IN-HOUSE. NOW HAS 21 DC-9'S AND 2 MD-88'S. ALL 2 X 2 SEATING @ 34 INCHES PITCH. 1ST CLASS MEALS.
JUNE 1996: NEW ROUTES TO BOSTON AND OMAHA (DC-9'S).
JULY 1996: 2ND QUARTER = +$5.72 MILLION (+$7.2 MILLION). 6 MONTHS = +$8.23 MILLION (+$8.97 MILLION).
3 DC-9-32'S (47701; 47744; EX-GARUDA INDONESIA (GIA), 47740 (AUS) SALES) WITH ABS PARTNERSHIP HUSHKITS, AND "D" MAINTENANCE CHECKS DONE IN-HOUSE.
OCTOBER 1996: 3RD QUARTER = +$7.3 MILLION RECORD! (+33%): +13% (RPM) TRAFFIC, +17% (ASM) CAPACITY, 64% LF LOAD FACTOR (-2.9).
23RD JET DELIVERY BY THE END OF 1996.
JANUARY 1997: 1996 = +$21.8 MILLION (+$19.1 MILLION) (NET PROFIT): +7.8% (RPM) PASSENGER TRAFFIC, +8.9% (ASM) CAPACITY, 63.5% LF LOAD FACTOR (-.6), 1.49 MILLION PASSENGERS (PAX), +6.3%.
TO ORLANDO (DC-9-32) IN MARCH 1997.
APRIL 1997: ALL BUSINESS CLASS AIRLINE.
KANSAS CITY TO NEW YORK LA GUARDIA.
1ST PLACE "PASSENGER SERVICE" AWARD FOR 1996 FROM "AIR TRANSPORT WORLD" MAGAZINE. "ZAGAT FREQUENT FLYER" SURVEY RANKS MIDWEST AIRLINES (MWX) 1ST OF USA OPERATORS AND 4TH IN WORLD AFTER SINGAPORE AIRLINES (SIA), CATHAY PACIFIC (CAT) & SWISSAIR (SWS), BASED ON "COMFORT, SERVICE, TIMELINESS AND FOOD" STATING "(MWX) HAS 1ST CLASS SEATING, SERVICE & FOOD AT COACH PRICES."
JULY 1997: (http://www.midwestexpress.com).
MIDWEST AIRLINES (MWX) HOLDINGS, OWNS (MWX) & SKYWAY AIRLINES 1ST 6 MONTHS = +$9.8 MILLION: +12.1% (RPM) TRAFFIC, +14.6% (ASM) CAPACITY, 63.2% LF LOAD FACTOR (-1.4),
SEPTEMBER 1997: 1,578 EMPLOYEES.
8 ORDERS (DECEMBER 1997) MD-81 (48029; 48030; 48031; 48032; 48033; 48070; & 48071), EX-JAPAN AIR SERVICES (JAS). TO INSTALL 2 X 2 LEATHER SEATING. NOW OPERATES 24 DC-9'S & 2 MD-88'S.
OCTOBER 1997: 1,800 EMPLOYEES.
STARTED STATE-OF-THE-ART, 70,000 SQ FT HANGAR, FOR 5 AIRPLANE BAYS FOR HEAVY AND LONG-TERM MAINTENANCE, TO BE COMPLETED 4TH QUARTER 1998, AT MILWAUKEE GENERAL MITCHELL AIRPORT, DOUBLING HANGAR SPACE.
DECEMBER 1997: "D" CHECK MAINTENANCE CONTRACT FOR 2 DC-9-32'S (47701; 47744) TO SABRETECH, ARIZONA.
JANUARY 1998: 4TH QUARTER = +$7.5 MILLION (+90.4%). 1997 = +24.9 MILLION (+14.7%): MAINTENANCE COSTS = +32.2%: 1.410 BILLION (RPM) TRAFFIC (+13.7%), +12.5% (ASM) CAPACITY, 64.1% LF LOAD FACTOR (+.6), 1.65 MILLION PASSENGERS (PAX) (+10.8%). USA MARKET SHARE 1997 = 19TH 0.23% (RPM), 15TH LF.
+5 JETS IN 1998. AT THE END OF 1997 HAD 24 JETS AND 15 TURBOPROPS.
MARCH 1998: TO HARTFORD, & EXPANDS FLIGHTS TO PHILADELPHIA. CODE SHARE WITH AMERICAN EAGLE TO LOS ANGELES (LAX) & DALLAS/FORT WORTH (DFW).
APRIL 1998: 2,150 EMPLOYEES.
MIDWEST EXPRESS HOLDINGS 1ST QUARTER = +$6.1 MILLION (+43.7%): -23% JET FUEL PRICES, MAINTENANCE EXPENSES = $9.33 MILLION (13.26% OF TOTAL OPERATIONS EXPENSES).
JUNE 1998: "D" MAINTENANCE CHECK, (EFIS), INTERIOR MODIFICATIONS TO (TIMCO), NORTH CAROLINA, ON 3 DC-9-10'S. ALSO "D" CHECK, GLASS COCKPIT MODIFICATIONS ON MD-80. 1 MD-81 (JT8D-217A/C), EX-JAPAN AIR SYSTEMS (JAS) DELIVERY.
JULY 1998: TO RALEIGH. ALSO KANSAS CITY - RALEIGH. NEW SERVICE TO HARTFORD AND TRAVERSE CITY, EXCEEDED EXPECTATIONS. WINTER SERVICE DECEMBER 1998 - APRIL 1999 TO FORT LAUDERDALE, FORT MYERS, TAMPA, AND PHOENIX, & YEAR ROUND OMAHA TO ORLANDO.
1ST 6 MONTHS = .764 BILLION (RPM) TRAFFIC (+13.2%), +11.8% (ASM) CAPACITY, 64.0% LF LOAD FACTOR (+.8), 879,000 PASSENGERS (PAX) (+11.1%).
5/10 ORDERS FAIRCHILD DORNIER 328 JETS (MARCH 1999) FOR OPERATIONS BY SUBSIDIARY, ASTRAL AVIATION, AS SKYWAY AIRLINES, 32 PAX.
AUGUST 1998: "AVIATION WEEK" AWARD AS TOP "BEST MANAGED NATIONAL CARRIER."
SEPTEMBER 1998: IN 1999, TO CODE SHARE WITH RENO AIR (RNO), FOR ACCESS TO RENO AND SAN JOSE.
OCTOBER 1998: NEW ROUTE, KANSAS CITY TO RALEIGH/DURHAM NONSTOP.
1ST 6 MONTHS = 1.2 BILLION (RPK) TRAFFIC (+13.2%), 64% LF LOAD FACTOR (+.8), 3.4 MILLION (FTK) FREIGHT TRAFFIC (-18.7%), 879,000 PASSENGERS (PAX) (+11.1%). 3RD QUARTER = +$10.8 MILLION (+$7.6 MILLION) RECORD!: MAINTENANCE COSTS = $12.37 MILLION (15.81% OF OPERATING EXPENSES).
MD-81 (48030) DELIVERY.
DECEMBER 1998: MD-81 (JT8D-217A/C), EX-JAPAN AIR SYSTEM (JAS).
JANUARY 1999: 4TH QUARTER = +$8.2 MILLION (+9%). 1998 = +$35.9 MILLION (+43.8%): 1.62 BILLION (RPM) TRAFFIC (+15.2%); +13.7% (ASM) CAPACITY; +65% LF LOAD FACTOR (+.9); 1.87 MILLION PASSENGERS (PAX) (+13.4%); MAINTENANCE COSTS +31.1%.
FEBRUARY 1999: MD-81 (48032, N806ME) DELIVERY.
MARCH 1999: TO KANSAS CITY - SAN ANTONIO (DC-9-32, 4/DAY).
APRIL 1999: 1ST Q = +21.5% RPM, +20.4% ASM, +.5% LF, +18.3% PAX, +$10.4M (+39%) MAINTENANCE COSTS, +$7.10M, -18% FUEL COSTS (-$2.3M).
2,133 EMPLOYEE (INCLUDING 253 FLIGHT CREW (FC), 399 CABIN ATTENDANTS (CA), & 345 MAINTENANCE TECHNICIANS (MT)).
MAY 1999: 1,856 EMPLOYEES.
MIDWEST EXPRESS HOLDINGS 1998 = +$7.1M (+$6.1M) (NET PROFIT).
JUNE 1999: 15TH YEAR ANNIVERSARY!
IN 9/99, TO WASHINGTON DULLES (DC-9).
JULY 1999: 1ST 6 MONTHS = +23.5% RPM, +22.8% ASM, 64.4% LF (+.4), 1.05M PAX (+19.7%). 2ND Q = +$13.1M (+21.4%) (MWX HOLDINGS) (+$10.8M): MAINTENANCE COSTS $14.74M (16.86% DOC).
AUGUST 1999: 4 ORDERS (9/00) MD-80 (48003; 48006; 48007; 48010), EX-SCANDINAVIAN AIRLINES (SAS).
SEPTEMBER 1999: 2 MD-81'S (969-48031, N805ME; 988-48033, N807ME), DELIVERIES.
OCTOBER 1999: WILLIAM BROWN, VP TECHNICAL SERVICES.
NOVEMBER 1999: IN 2/00, NONSTOP KANSAS CITY - WASHINGTON DULLES.
TIM HOEKSEMA, PRESIDENT & CEO, + MICHAEL CHOWDRY, ATLAS AIR (TLS), FOUNDER & CEO, BOTH NAMED "ENTREPRENEURS OF YEAR" BY ERNST & YOUNG. TIM'S AWARD WAS FOR TURNING A SMALL KIMBERLY-CLARK CORPORATE SHUTTLE SERVICE FLEET INTO MIDWEST AIRLINES (MWX), A UNIQUE NICHE, SERVING CITIES WITH STRONG BUSINESS BASES & FEW IF ANY NONSTOPS - & SERVING THEM PROFITABLY AND STYLISHLY IN A FIERCELY COMPETITIVE INDUSTRY. LAUDED FOR ITS 1ST CLASS SERVICE, INCLUDING LAVISH ENTREES & FRESH-BAKED CHOCOLATE CHIP COOKIES, CHAMPAGNE & WINE WITH MEALS, LEATHER SEATS, SUBSTANTIAL LEG ROOM, & 1/3 FEWER SEATS ADDING UP TO THE "BEST CARE IN THE AIR," (MWX)'S TAG LINE.
1998 = +$33.46M (+$24.23M).
DECEMBER 1999: 2,576 EMPLOYEES (INCLUDING 371 MAINTENANCE TECHNICIANS (MT) (INCLUDING 165 A&P'S (MT), 22 AVIONICS, 24 INSPECTORS).
MAJOR MAINTENANCE IN 2 HANGARS, 189,100 SQ FT, COMPLETE STRUCTURAL, AVIONICS & SYSTEM WORK ON DC-9/MD-80'S, INCLUDING EXTENSIVE INTERIOR MODIFICATIONS.
PLANS TO INSTALL PROVISIONS FOR LAPTOP COMPUTER HOOKUPS FOR ALL PASSENGERS.
HAS 26.64% MARKET SHARE IN MILWAUKEE.
MD-81 (992-48010, N814ME) DELIVERY.
JANUARY 2000: 4TH Q = +$7.5M (-8.8%): +54.7% FUEL COSTS; MAINTENANCE COSTS = $16.46M (17.85% DIRECT OPERATING COSTS (DOC): +19% RPM, +16% ASM. 1999 = +$36.99M: 1.96B RPM (+20.6%), +19.8% ASM, 65.4% LF (+.4), 2.19M PAX (+17.2%).
2 MD-80'S IN 2ND & 3RD Q.
APRIL 2000: IN 6/00, DES MOINES TO NEW YORK LAGUARDIA. IN 9/00, NONSTOP INDIANAPOLIS - BOSTON.
2,133 EMPLOYEES (INCLUDING 253 FC, 399 CA, & 345 MT).
1ST Q = -$2.6M, +93.2% FUEL COSTS (-$9M), NOT ENOUGH TRAINED PILOTS.
MAY 2000: DEPARTMENT OF TRANSPORTATION (DOT) OK'S USA - CANADA RIGHTS. PLANS SERVICE FROM BOSTON TO HALIFAX, OTTAWA, AND QUEBEC.
+5 ORDERS FAIRCHILD 328JETS & 5 ORDERS 428JETS FOR SUBSIDIARY, SKYWAY.
JUNE 2000: IN 10/00, BOSTON TO INDIANAPOLIS.
DC-9-30 (47329) PARTED OUT.
JULY 2000: 2ND Q = +$8.8M (-32.3%): +75.5% FUEL COSTS AND PILOT SHORTAGES.
AUGUST 2000: 2,424 EMPLOYEES.
1999 = +$36.99M (+$33.46M).
1 MD-81 (JT8D-217C) (48006, N812ME), EX-SCANDINAVIAN AIRLINES (SAS), DELIVERY.
SEPTEMBER 2000: MAKES KANSAS CITY ITS 3RD HUB AFTER MILWAUKEE AND OMAHA. NOW HAS 450 MAINTENANCE TECHNICIANS (MT) EMPLOYEES.
OCTOBER 2000: 2,424 EMPLOYEES (INCLUDING 340 FC, 367 CA, 491 MT).
1ST 9 MONTHS = 1.48B RPM (+1.2%), +4.1% ASM, 63.8% LF (-1.8), 1.65M PAX (+.1%). 3RD Q = +$4.3M (-61%) (+$11.1M): +13.7% RPM, +17.2% ASM, +24.5% FUEL COSTS.
FOR 6TH STRAIGHT YEAR, "CONDE NASTE TRAVELER" MAGAZINE NAMES MIDWEST AIRLINES (MWX) "#1 US AIRLINE."
STEVE SPRAUGE, ACTING MANAGER ENGINEERING, REPLACES GARY GOLIGHTLY.
IN 1/01, TO SAN FRANCISCO (SFO).
DECEMBER 2000: IN 3/01, KANSAS CITY - ATLANTA (DC-9/MD-80).
JANUARY 2001: 4TH Q = -$5.1M. /00 = +$4.99M (-86.5%) (+$38.8M): 1.97B RPM (+.8%), +5.7% ASM, 62.4% LF (-3), 2.06M PAX (+.1%).
PLANS 72,000 SQ FT, 6-BAY, MAINTENANCE FACILITY AT MILWAUKEE GENERAL MITCHELL INTERNATIONAL, WISCONSIN, FOR COMPLETION IN LATE 2001, FOR SKYWAY 328JETS & BEECH 1900'S. CURRENT 30,000 SQ FT FACILITY IS TO BE SOLD.
MARCH 2001: IN 6/01, TO INCORPORATE (MSG-3) MAINTENANCE SYSTEM FOR DC-9/MD-80'S AND INCREASE UTILIZATION.
IN 4/01, KANSAS CITY TO NEW ORLEANS.
1 MD-81 (971-48007, N813ME) DELIVERY.
APRIL 2001: SERVES >50 DESTINATIONS.
1ST Q = .48B RPM (+7.8%); +11.1% ASM; 57.9% LF (-1.7); -$5.2M: 538K PAX (+8.57%); +21.9% FUEL COSTS.
PLANS TO CUT -7% FROM WORKFORCE (-250).
(MOU) $1.15B, 30/20 ORDERS 717-200'S, 88 PAX, & 20/20 ORDERS EMBRAER RJ'S. THE RJ'S WOULD BE FLOWN BY MIDSWEST AIRLINES (MWX) SUBSIDIARY, SKYWAY.
MAY 2001: USES 3-WAY TECHNOLOGY LINK TO AID PEAK-HOUR DISPATCHERS, INCLUDING FLIGHT EXPLORER, AN INTERNET-BASED REAL-TIME TRACKING & INFORMATION SYSTEMS; DAVID R BORNEMANN ASSOCIATES, PROVIDER OF PC-BASED FLIGHT PLANNING, AIRPLANE TRACKING & FLIGHT CREW SCHEDULING SOFTWARE; AND, WSI JOINT TECHNOLOGIES, A PROVIDER OF AVIATION WEATHER INFORMATION. RESULTS IN AUTOMATED EXCHANGE OF REAL-TIME DATA & DISPLAY INFORMATION AMONG THE VARIOUS SYSTEMS THAT DISPATCHERS NEED TO MONITOR & MANAGE FLIGHTS. INTEGRATION TESTING DONE BY WESTJET (WJI).
JULY 2001: 1ST 6 MONTHS = 1.05B RPM (+9.4%), +10.9% ASM, 62.2% LF (-.8), 1.09M PAX (+9.6%). 2ND Q = -$3.2M (+$8.8M): +14.9% FUEL COSTS; MAINTENANCE COSTS = $19.44M (-5.2%).
AUGUST 2001: 2,760 EMPLOYEES (INCLUDING 353 FLIGHT CREW (FC); 463 CABIN ATTENDANTS (CA); 532 MAINTENANCE TECHNICIANS (MT); 75 GENERAL MANAGEMENT; 8 AIRPLANE/TRAFFIC HANDLING; 44 AIRPLANE CONTROL; 525 PASSENGER HANDLING; 141 CARGO HANDLING; 55 TRAINESS/INSTRUCTORS; 110 RECORDKEEPING; 106 TRAFFIC SOLICITORS; 348 OTHERS) EMPLOYEE PRODUCTIVITY (ASM/EMPLOYEE): 1,181,958.
TOP 10 MIDWEST AIRLINES (MWX) AIRPORTS:
1 MILWAUKEE 2,061; 2 KANSAS CITY 434; 3 NEW YORK LA GUARDIA 365; 4 WASHINGTON NATIONAL 302; 5 OMAHA 297; 6 BOSTON 230; 7 LOS ANGELES (LAX) 201; 8 ORLANDO 168; 9 NEW YORK/ NEWARK 161; 10 DALLAS/FORT WORTH (DFW) 150.
SEPTEMBER 2001: WILL REDUCE ITS ASM'S (CAPACITY) BY -15% AND FURLOUGH -450 OF ITS 3,750 EMPLOYEES.
CHICAGO MIDWAY TO WASHINGTON DULLES (3/DAY NONSTOPS).
OCTOBER 2001: 3RD Q = -$3.1M: MAINTENANCE COSTS = $17.26M (-2.8%). LOST -$9.4M AS RESULT OF TERRORIST ATTACK ON 9/11. HAD RISING COSTS AND LOST REVENUE BECAUSE ITS 22 DAILY FLIGHTS TO WASHINGTON NATIONAL WERE NOT OPERATED FOR OVER A MONTH.
JANUARY 2002: 4TH Q = -$2.1M (-67.2%): -32% FUEL COSTS; MAINTENANCE COSTS = $13.56M (-23.3%). 2001 = -$12.11M (+$2.64M): 3.18B RPK; 61.1% LF; 2.03M PAX (-1.2%); 7.02M FTK (-9.7%); 2,348 EMPLOYEES (-17.8&).
APRIL 2002: WASHINGTON NATIONAL - DES MOINES - KANSAS CITY. TO HARTFORD.
(TELEPHONE: +1 (414) 570-4000). (FAX: +1 (414) 570-0199).
1ST Q = +$3.8M (-$6.6M): 460.51M RPM (-4.7%); -11.6% ASM; 62.4% LF (+4.5); 459.84K PAX (-7.3%). 1ST Q = 748.25M RPK (-4.18%); -10.35% ASK; 61.5% LF (+4); 504K PAX (-6.49%); 1.37M FTK (-15.07%).
$940M, 25/25 ORDERS (2/03) 717-200'S.
MAY 2002: IN 11/02, TO FORT LAUDERDALE, FORT MYERS AND TAMPA WITH SEASONAL NONSTOPS.
JUNE 2002: IN 1/03, WILL CHANGE ITS NAME FROM "MIDWEST EXPRESS" TO "MIDWEST AIRLINES."
July 2002: 2nd Q = +$935K. 6 months = 1.59B RPK (-6.87%); -6.86% ASK; 61.9% LF; 1.08M PAX (-8.76%); 3.01M FTK (-13.77%).
August 2002: Thomas Irwin, VP Flight Operations.
September 2002: To reduce staff by -200 to -250 employees and sell 2 DC-9's by end of 2002. Job reductions will occur through furloughs and attrition.
In 11/02, Newark - Kansas City - Austin. In 12/02, Kansa City to Fort Myers.
October 2002: 3rd Q = -$8.6M.
November 2002: 2 DC-9-15's (46-45841, N900ME; 23-45842) sold to Intercontinental de Aviacion (IDV).
December 2002: Bill Brown, VP Maintenance & Engineering will resign 1/03, to take a Senior VP Sales & Marketing position with Avborne, Miami.
January 2003: 4th Q = -$6.7M. 2002 = -$10.6M.
In 5/01, Kansas City - San Francisco (SFO) (nonstop). Milwaukee - (SFO).
February 2003: Will furlough -430 employees (-13%). Plans to launch a low-fare carrier to serve high-demand leisure destinations, using 5 MD-80 airplanes, seating 143-147 pasasengers in a 3 x 2 seating configuration.
1st 717-2BL (5116-55166, N902ME) delivery.
March 2003: 717-2BL (5117-55167, N903ME), delivery.
April 2003: Midwest Airlines (MWX) Holdings 1st Q = -$11.8M (+$3.8M): 61,1% LF (-1.3): affected by lower business fares, reduced business travel demand, increased competition from low-fare airlines, and the overall depressed pricing environment.
DC-9-32 (47672) sold to World Aviation.
May 2003: In 8/03, to launch a low-fare service operation of two types of (MWX) service: Midwest Airlines (MWX) Saver Service with low-fares to leisure destinations, and Midwest Airlines (MWX) Signature Service, which is its traditional service to business destinations. James Rankin, General Manager of (MWX) Saver Service, will operate 5 MD-80's, 2 x 3 seating, 143 or 147 PAX, starting in 8/03 with nonstop Milwaukee - Denver, Orlando, Las Vegas, and Phoenix, and in 9/03, Milwaukee - Los Angeles. These MD-80's will have Weber seats (ex-American Airlines (AAL), refurbished by Integrated Resources, Tennessee.
717-2BL (55169, N905ME) delivery. DC-9-32 (47730) sold to Protours.
June 2003: Milwaukee to Fort Lauderdale, Fort Myers and Tampa (weekend, daily). Kansas City - John Wayne Airport (2/day weekdays). Milwaukee - Kansas City - John Wayne (1/day weekend).
July 2003: Parent, Midwest Express Holdings, stated it will not be forced to file for Chapter 11 reorganization, as it has achieved 3 restructuring initiatives, targeted to save some +$70M/year.
2nd Q Midwest Express Holdings = +$3.6M (+$6.6M): -16.2% ASM; 67.1% LF (+4.1). 1st 6 months Midwest Express Holdings = -$5.2M (+$4.8M).
717-2BL (5121-55171, N907ME), delivery. DC-9-32 (959-48133, N602ME), sold to Airgroup.
August 2003: DC-9-32 (956-48132) sold to Airgroup. 717-2BL (5122-55172, N908ME) delivery.
September 2003: 717-2BL (5123-55173, N909ME) delivery.
October 2003: Will sell and lease back its HQ building, receiving $9.5M in net proceeds. It also plans to raise another $30.5M (net) in the equity markets by selling an additional $8M in common stock, and $25M in convertible senior secured notes.
In 11/03, Milwaukee - Fort Lauderdale, Fort Myers, Tampa (daily).
3rd Q (MWX) Express Holdings = -$3.6M (-$8.6M): -16.1% ASM; +11.9 LF. 9 months (MWX) Express Holdings = -$11.7M (-$3.8M).
717-2BL (5124-55174, N910ME), (GEF) leased.
December 2003: Robert Bahlman, Senior VP, CFO & Controller will leave the company in 2/04, after being with (MWX) since 1988.
DC-9-32 (47133) sold to Inter (IDV).
January 2004: 4th Q = -$1.6M. (MWX) HOLDINGS 2003 = -$8.41M (-$31.8M): 3.2M RPK (+.4%); 65.7% LF; 2.13M PAX (-2.7%); 5.32M FTK (-16.2%).
717-2BL (5127-55177, N914ME), delivery.
February 2004: 2 DC-9-32's (47791; 47794) withdrawn from use (WFU) at Mojave.
717-2BL (5128-55178, N916ME) delivery.
March 2004: In 5/04, Milwaukee - Kansas City - San Francisco.
717-2BL (5129-55179, N917ME), delivery. DC-9-32 (835-47740, N216ME) WFU at Mojave. DC-9-32 (198-47102) sold to Global Aviation Leasing.
April 2004: Midwest Airlines (MWX) Group 1st Q = -$6.9M (-$11.8M): 584.1M RPM (+24.6%); +19.5% ASM; 63.6% LF (+2.5); 584K PAX (+16.06%); 910K FTK (-34.95%). Ended the Q with $101.3M in unrestricted cash ($88.3M at end of 2003).
DC-9-14 (2-45696) sold to Centec Aviation.
May 2004: 2,893 employees (including 265 FC, 359 CA, & 374 MT).
DC-9-32 (47190) sold to World Aviation.
June 2004: 20th anniversary! Launched a marketing campaign that features its "commitment to customer care."
In 12/04, Milwaukee to Fort Lauderdale, Fort Myers, & Tampa (MD-80, daily Saver Service).
717-2BL (55180, N918ME), delivery. DC-9-32 (47132) sold to Global Aircraft Leasing.
2nd Q = -$3.5M (+$3.6M).
September 2004: In 12/04, Kansas City to Fort Lauderdale, & New Orleans (daily nonstop).
Robert Bahlman, Executive Director, Kansas City Region.
DC-9-41 (47673) returned.
October 2004: 3rd Q Midwest Air Group = -$13.4M (-$5.1M).
November 2004: In 12/04, Milwaukee - Fort Lauderdale, Fort Myers (daily). Milwaukee - Tampa.
January 2005: Midwest Air Group, parent of Midwest Airlines (MWX) & Midwest Connect 4th Q = -$19.4M (-$1.6M): +52.6% surge in fuel expenses and +57.5% hike in maintenance expenses related to an engine maintenance contract. Midwest Air Group 2004 = -$43.1M (-$13.3M).
717-2BL (55182, N920ME) delivery.
March 2005: 717-2BL (55183) delivery.
April 2005: Greg Aretakis, VP Planning & Revenue Management, ex-Frontier Airlines (FRO).
Israeli Air Industries (IAI) Empire Aero Center, New York, will perform heavy maintenance for Midwest Airlines (MWX)'s 13 MD-80's.
1st Q = -$15.6M (-$6.9M): +20.1% RPM.
717-2BL (55184, N922ME), delivery.
June 2005: Midwest Airlines (MWX) is a USA carrier catering primarily to business travelers, serving 50 destinations in Canada and the USA from its Kansas City, Milwaukee, and Omaha hubs.
(IATA) Code: YX -453. (ICAO) Code: MEP - MIDEX.
Parent organization/shareholders: Midwest Air Group (100%).
Owns: Skyway Airlines, dba Midwest Connect.
Alliances: Air Midwest; American Eagle Airlines; & Midwest Connect.
Main Base: Milwaukee (General Mitchell Field) (MKE).
Hubs: Kansas City International (MCI) & Omaha (Eppley) (OMA).
Domestic, Scheduled Destinations: Atlanta; Baltimore; Boston; Dallas/Ft Worth; Denver; Fort Lauderdale; Fort Myers; Kansas City; Las Vegas; Los Angeles; Milwaukee; New Orleans; New York; Omaha; Orlando; Philadelphia; Phoenix; San Antonio; San Francisco; Santa Ana; Tampa; & Washington.
July 2005: 2nd Q = -$8.2M (-$3.5M): +65.2% fuel expenses; +32.1% RPM; +7.7% ASM; +6.8 LF. 1st 6 months = -$24.1M (-$10.3M).
25th 717-2BL (55185, N923ME) delivery.
August 2005: Midwest Airlines (MWX) will launch single daily nonstop service in three markets from Kansas City: San Diego, Orlando and Pittsburgh. The new nonstop San Diego service will enable travelers on Midwest flights from Milwaukee, New York, Pittsburgh and Washington to connect in Kansas for one-stop San Diego service.
October 2005: Midwest Airlines (MWX) will launch daily nonstop service between Kansas City and Tampa Dec 15. The airline will operate 1 flight a day using a Boeing 717-200. It also will add flights to its service between Kansas City and Fort Lauderdale. It will continue its connecting service to both Florida markets through Milwaukee.
Worldspan said Midwest Airlines (MWX) signed a multiyear agreement to implement Rapid Reprice on its website for repricing airline tickets when itineraries change.
Midwest Air Group, parent of Midwest Airlines (MWX) and Skyway Airlines/Midwest Connect, reported a third-quarter net loss of -$26.9 million, double the -$13.4 million loss in the year-ago period, owing to surging expenses. "Our revenue performance remained strong in the third quarter," Chairman and CEO Timothy Hoeksema said. "However, the highly competitive industry environment and record fuel costs, which were aggravated by hurricanes that disrupted service and damaged oil refineries and the fuel distribution system, contributed to a difficult quarter from a profitability perspective."
Operating revenue rose +32.1%, $136.6 million. Yield dipped -7.5% to 13.57 cents but load factor jumped 12.9 points to 73.4% LF, pushing RASM up +12.8% to 10.47 cents. Operating expenses climbed +40.7% to $163.7 million, including a $15.6 million impairment charge related to the planned retirement of two MD-81s. Fuel costs soared +69.1%. At the unit level, CASM rose +18.6% to 13.34 cents, or +10.8% if fuel is excluded. Operating loss widened to -$27.1 million from -$13 million.
The MD-81s will be removed from scheduled service in December. One will be available for sale immediately, the other will be available in May after being used for charter operations. They will be replaced by future deliveries of 717s.
Year-to-date operating revenues increased +22% to $380.2 million while operating expenses rose +27.8% to $431.43 million, which combined with rising interest income left the company with a -$51 million loss through the first three quarters versus a year-ago loss of -$23.7 million.
In the fourth quarter, Midwest (MWX) plans to launch daily direct service from Kansas City to Orlando, Pittsburgh, and San Diego.
717-2BL (55190, N924ME), delivery.
November 2005: Midwest Airlines (MWX) received (FAA) approval to allow passengers to use portable oxygen concentrators.
December 2005: Juro International Systems announced that Midwest Airlines (MWX) will use its JIS-MIT Revenue Analysis System to warehouse and study real-time revenue analysis information.
717-2BL (55191, N925ME), delivery.
January 2006: Midwest Air Group, parent of Midwest Airlines (MWX) and its Regional affiliate Skyway Airlines, reported a loss of -$64.9 million for 2005, widened from -$43.1 million in 2004 on special items and higher fuel expense, but said its loss for fourth quarter narrowed to -$13.9 million from -$19.4 million last year. "The competitive environment and high fuel prices continued to challenge us in the fourth quarter, as they have throughout a difficult year," Chairman and CEO Timothy Hoeksema stated. Annual operating revenues rose +25.9% to $523 million with passenger revenue up +29.8% to $459.7 million. Operating expenses climbed +27.7% to $588.2 million, largely owing to a +64% jump in fuel expense to $178 million. Commission expense also outpaced revenue growth, rising +33% to $13.8 million. Operating loss widened to -$65.2 million from -$45.3 million in 2004. Special items last year totaled $17.1 million, including a $15.6 million asset impairment charge for airplane disposals, while 2004 results were net of +$1.2 million in costs related to airplane disposals. Fourth-quarter operating revenues rose +37.8% to $142.8 million while operating expenses climbed +27.6% to $156.7 million, with the result that operating loss narrowed to -$14 million from -$19.2 million in 2004. At the unit level, Midwest Airlines (MWX) saw fourth-quarter (CASM) fall -6.8% to 10.89 cents. Excluding fuel, it plunged -20.4% to 7 cents. Full-year (CASM) climbed +8.1% to 11.21 cents but fell -2%, excluding fuel to 7.73 cents. Annual yield dipped -1.9% to 11.93 cents while (RASM) declined -9.6% to 9.03 cents. Fourth-quarter yield climbed +4.1% to 12.79 cents and (RASM) rose +6.5% to 9.17 cents.
Midwest Airlines (MWX) will add a Saturday flight to its Milwaukee - Orlando service from March 4 to April 29, bringing weekly frequencies to 22.
Midwest Airlines sold an MD-81 to AeroTurbine (AUB) of Miami. Meridian Aerospace acted as an exclusive agent for the seller.
February 2006: Midwest Airlines (MWX) will increase the frequency of flights on 3 popular routes from Apr 2nd as follows:
Milwaukee - Atlanta = Increasing to 3 roundtrips each weekday;
Milwaukee - New York LaGuardia (LGA) = Increasing to 5 roundtrips each weekday;
Milwaukee - Philadelphia = Increasing to 4 roundtrips each weekday.
All of the additional flights are operated with 717-200s.
717-2BL (55192, N926ML), delivery.
March 2006: Midwest Airlines (MWX) partnered with rival Northwest Airlines (NWA) on a loyalty program initiative that will allow members to earn and redeem miles on each other's flights. Midwest (MWX) members can redeem miles on (KLM) flights as well.
Midwest Airlines (MWX) is expanding its Kansas City and Milwaukee services from June 1. Frequencies will be added from Kansas City to Boston (to twice-daily), Los Angeles (to thrice each weekday during summer), Milwaukee (to seven flights per weekday), New York La Guardia (to four times each weekday) and San Diego (to twice-daily during summer). Flights are aboard 717s. From Milwaukee, Midwest (MWX) will offer seasonal nonstop daily service to San Francisco through September 30, supplementing a year-round flight through Kansas City. Seasonal frequency increases will occur on services to Baltimore/Washington International (to thrice each weekday from May 1) and Denver (to four times per weekday from June 1).
717-2BL (55193, N927ML), delivery.
April 2006: Midwest Airlines (MWX) flew 351.6 million (RPM)s in March, a +24.5% increase over the year-ago month. Capacity climbed +19.8% to 443.8 million (ASM)s, lifting load factor +3.1 points to 81.2% LF.
Midwest Air Group, parent of Midwest Airlines (MWX) and Skyway Airlines, continued to show progress on its bottom line, reporting a -$8.7 million loss for the first quarter, lowered from a -$15.9 million deficit in the year-ago period.
"Many of the positive trends we reported in 2005, including strong revenue performance and improvement in nonfuel costs, continued in the first quarter of this year. While earnings are historically weak in the first quarter and fuel prices remain extremely high, being able to consistently grow revenue and reduce costs is certainly encouraging," Chairman and CEO, Timothy Hoeksema said.
Revenues climbed +34.6% to $150.7 million owing to increased traffic and higher yields, while expenses rose +25.1% to $160 million. Operating loss narrowed from -$15.9 million to -$9.3 million even as fuel costs increased +50% to $52.8 million and the company saw just +$100,000 in cost benefits from hedging during the quarter.
Group passenger traffic grew +25% to 944.3 million (RPM)s as Midwest Airlines (MWX) took delivery of two 717s and boosted frequency on popular Milwaukee - Boston, Milwaukee - Kansas City and Kansas City - Orlando routes. Capacity climbed +21.2% to 1.32 billion (ASM)s, lifting load factor +2.1 points to 71.5% LF. Yield rose +8.8% to 13.9 cents and scheduled service (RASM) jumped +12.9% to 10.51 cents. Unit cost was up +3.1% to 11.87 cents but fell -4.7% to 7.95 cents excluding fuel.
Midwest (MWX) reported "sizable gains" in market share at its Milwaukee and Kansas City hubs and will be adding frequencies from both in the current quarter. "We're encouraged by the continuing improvement in the industry environment, as well as strong advanced bookings for travel on Midwest (MWX). We expect our earnings to reflect these positive changes as we move into the busy summer travel season, though of course, fuel prices continue to be a concern," Hoeksema said.
Midwest Airlines (MWX) signed a deal with Empire Aero Center of New York for scheduled heavy maintenance on its 11 MD-80s. Work begins this month and will last for five months.
May 2006: Midwest Air Group, parent of Midwest Airlines (MWX) and Midwest Connect, flew 352.2 million passenger traffic (RPM)s in April, a +39.6% increase over the year-ago month. Capacity rose +26% to 435.37 million (ASM)s and load factor climbed +8.3 points to 82.6% LF.
The final 2 717's (55194, N928ME; to Midwest Airlines (MWX), & 55099, N939AT; to AirTran Airways (CQT), the No 2 & No 1 largest customers for the twinjet, which satrted life as the MD-95 in 1995. The two airplanes took the total number of commercial jets (including KC-10s) built at Long Beach to 3,640. Boeing, which inherited the legacy of Long Beach through its purchase of McDonnell Douglas nine years ago, celebrated the event with a gala dinner for more than 500, while the handover ceremony was framed by a (UPS) DC-8 Super 73, a Northwest Airlines (NWA) DC-9-30 and a Dreamflight DC-3 flown in for the occasion.
Boeing Commercial Airplanes CEO, Alan Mulally handed over the last two 717s to Air Tran (CQT) Chairman and CEO, Joe Leonard and Midwest Airlines (MWX) Chairman and CEO, Tim Hoeksema. Jim Phillips, former VP and General Manager of the 717 program, delighted the assembled faithful by announcing that Boeing will retain a considerable amount of Douglas heritage and icons, including the famous neon "Fly DC-Jets" sign in Douglas Park, the office development that will replace the production halls. Production of the C-17 continues on the opposite side of Long Beach Airport.
July 2006: Midwest Airlines (MWX) flew 352.9 million (RPM)s passenger traffic in June, a +25.6% increase over the year-ago month. Capacity (ASM)s were up +17% to 416.8 million and load factor climbed +5.9 points to 84.7% LF.
Midwest Air Group, parent of Midwest Airlines (MWX) and Skyway Airlines, reported second-quarter net income of +$8.8 million, compared to a loss of -$8.2 million in the year-ago quarter, on a +34.4% jump in revenues to $176.9 million. "A strong increase in passengers and an improved fare environment helped offset soaring fuel costs in the quarter," Chairman and CEO, Timothy Hoeksema said. The company posted operating income of +$7.5 million, an improvement over an operating loss of -$8.2 million last year. Expenses rose +21.2% to $169.3 million as fuel costs surged +49.4% to $60.6 million.
Midwest Airlines will launch daily Milwaukee (MKE) - Fort Myers service from October 14 through April 30 and nonstop (MKE) - Fort Lauderdale flights on October 1 (service currently operates through Kansas City). From November 16 through April 30, it will add second daily flights to Fort Myers, Fort Lauderdale and Tampa.
August 2006: Midwest Air (MWX) Group flew a consolidated 388.6 million (RPM)s passenger traffic in July, a +18.5% increase over the year-ago month. Capacity climbed +14.4% to 463.3 million (ASM)s and load factor rose +2.9 points to 83.9% LF. Yield grew an estimated 8.6% to 14.1 cents and passenger (RASM) was up an estimated +12.5% to 11.9 cents.
Midwest Airlines (MWX) will operate daily Kansas City - Fort Myers service aboard a 717 from November 1 to April 30, 2007. The carrier also will increase to daily flights from Kansas City to Orlando and Fort Lauderdale from October 14 to April 30.
September 2006: Midwest Air (MWX) Group said its August yield rose +8.6% to an estimated 14.6 cents. Passenger (RASM) surged +17.5% to 11.5 cents. Midwest Airlines (MWX) and Midwest Connect flew 361.7 million consolidated (RPM)s passenger traffic in August, up +18.1% from the year-ago month. Capacity rose +9.2% to 460.5 million (ASM)s and load factor increased +6 points to 78.6% LF.
Abanco International of Illinois will partner with Midwest Airlines (MWX) to offer payments for services on Midwest (MWX) flights from November using Abanco's mobile data technology inflight application to process credit card transactions.
October 2006: Midwest Air (MWX) Group said September passenger (RASM) rose an estimated +9.5% year-over-year to 9.5 cents, while yield increased an estimated +2.5% to 14.7 cents. The company flew 296.2 million (RPM)s during the month, a +13% gain over the year-ago month. Capacity rose +5.8% to 416.5 million (ASM)s and load factor was up +4.5 points to 71.1% LF.
Midwest Air (MWX) Group reported net income of +$1.7 million for the third quarter ended September 30, reversing a loss of -$26.9 million in the year-ago period. Revenues increased +23.4% to $168.6 million, reflecting a +16.8% growth in passenger traffic, and operating income improved to $400,000 from a -$27.1 million loss. Expenses were up +2.7% to $168 million. Improvement was attributed to "broad marketing initiatives," that boosted passenger traffic in addition to more competitive fares. For the nine-month period, net income lifted to +$1.8 million from a -$51 million loss. Costs were up +15% to $497 million and revenue gained +30.5% to $496.2 million.
Midwest Airlines (MWX) will improve and increase the frequency on its Milwaukee to Dayton route from November 16th. Midwest Connect, which operates the route, will use all Fairchild 328JETs on the route from that date and add a Saturday service. As a result there will be 2 flights on weekdays and 1 on weekends.
Midwest Airlines (MWX) will increase the frequency on its Kansas City to New York La Guardia route from 4 to 5 flights a day on weekdays from December 3rd. The airline will also increase the frequency on its Kansas City to Milwaukee route from 7 to 8 flights a day on weekdays on the same date. These additional flights will be operated with a 717-200.
November 2006: Midwest Air (MWX) Group carriers flew 335.3 million (RPM)s passenger traffic in October, up +17.3% from the year-ago month. Capacity rose +4.2% to 438.5 million (ASM)s, lifting load factor +8.6 points to 76.5% LF. The company estimated a +2.8% increase in yield to 15.07 cents and a +16.5% gain in (RASM) to 12.98 cents.
December 2006: Midwest Air (MWX) Group flew 333.4 million system (RPM)s in November, a +13.2% increase from the year-ago month, against a +6.7% rise in (ASK)s to 450.7 million. Load factor gained +4.2 points to 74% LF.
AirTran Airways (CQT) revealed that it continues to be willing to wager approximately $290 million on the notion that opposites do indeed attract, as the prototypical low-cost carrier (LCC) said it intends to forge ahead in its bid to acquire Midwest Airlines (MWX), despite the Milwaukee-based full-service carrier's rejection of its initial overture.
AirTran (CQT)'s first offer of $11.25 in cash and stock per Midwest Air (MWX) Group share, which it said represented a 37% premium on the average closing price for the preceding 30-day period, was presented on October 20 and rejected by Midwest (MWX) Chairman, CEO & President, Timothy Hoeksema in a letter dated December 6, that said in part, "The company's strategic plan and remaining independent hold the best promise for continued growth and increased shareholder value going forward."
AirTran (CQT) responded later with a press release, presentation and letter from Chairman & CEO, Joseph Leonard telling Hoeksema that a merger "better positions the combined company to compete against our larger rivals." But in a counter-statement, Hoeksema reiterated that Midwest (MWX) wants to stay independent and said, "We view AirTran (CQT)'s offer at only about $5 per share, because it includes approximately $6 per share in cash that already belongs to our shareholders."
AirTran (CQT) believes a merger would generate in excess of $60 million in annual synergies and approximately $3 billion in pro forma revenue next year. The route networks contain little overlap and would offer the combined carrier access to markets throughout the USA Southeast, Midwest and East with major hubs in Atlanta and Milwaukee and secondary hubs at Kansas City, Chicago Midway, Baltimore/Washington International and Orlando International, creating more than >$40 million in synergies. The other $20 million would come from cost reductions, much of which would be achieved by replacing Midwest (MWX)'s MD-80s with AirTran (CQT)'s new 737-700s.
With nine-month revenues of $1.4 billion and a fleet of 123 airplanes comprising 87 717s and 36 737-700s, according to the Ascend CASE database, AirTran (CQT) is considerably larger than Midwest (MWX), which operates 25 717s and 11 MD-80s, according to CASE, and had nine-month revenues of just under $500 million. Together, the two account for around 2.2% of USA (RPK)s passenger traffic.
AirTran (CQT) said it will continue to pursue the acquisition, with Leonard saying that "similar cultures, compatible low-cost business models, complementary networks and fleet commonality" make the carriers "as close to a perfect fit as anyone can imagine."
Midwest Airlines (MWX) said it is rejecting overtures from AirTran (CQT), because the offer isn't in the best interests of its employees, shareholders, customers or the communities it serves.
AirTran (CQT) revealed the $290 million deal, saying the two carriers are compatible and together could become a "national low-cost, high-quality airline" generating $3 billion in pro forma revenue next year.
Despite the rosy scenario painted by its suitor, Midwest (MWX)demurred, saying it prefers to go it alone, as it has done since it began flying out of its Milwaukee hub in 1984. "We are successful because we provide customers with an exceptional travel experience," CEO, Tim Hoeksema said, reiterating the company's rejection. "Our product and service are unique and are not readily compatible with another carrier."
Hoeksema said Midwest (MWX) is projecting annual capacity growth of more than >10% over the next three years along with "significant growth in profitability." He added, "While it is the fiduciary obligation of the board of directors to review credible offers, the board unanimously concluded that Midwest (MWX)'s business plan as a standalone company would support a considerably better return to our shareholders than AirTran (CQT)'s offer."
Said AirTran (CQT) Chairman & CEO, Joe Leonard: "We're hopeful the Midwest (MWX) board will reconsider and sit down with us and create a dialogue. To the outside observer, this is a natural."
AirTran Airways (CQT) said it intends to bring new jobs and flights to Milwaukee if its $290 million bid for Midwest Airlines (MWX) is successful. It said its recent growth - - it has added +2,800 jobs in the past five years - - compares favorably to Midwest (MWX)'s, which AirTran (CQT) said has cut -500 jobs during the same period, citing Securities Exchange Commission (SEC) filings. It also has 60 737s on order, and said it is preparing to add +3,000 positions in the next five years. Midwest (MWX) has two MD-80s on order, AirTran said. "AirTran (CQT) has both its history and the future firm airplane orders to deliver on its pledge to add jobs in Milwaukee," Chairman & CEO, Joe Leonard argued.
AirTran Airways (CQT) employees threw their support behind the proposed merger with Midwest Airlines (MWX). AirTran (CQT) said a letter addressed to Chairman & CEO, Joe Leonard and signed by three unions and two internal employee organizations, cited "the common cultures and entrepreneurial spirit" at both carriers, and offered "to meet with our counterparts at Midwest (MWX)" and "to stand together to help make this merger a reality."
Midwest Air (MWX) Group will grow capacity by +15% this year and look to boost revenue as part of a new strategy that the Midwest Airlines (MWX) parent hopes will increase shareholder value and fend off AirTran Airways (CQT).
In a presentation filed with the USA Securities and Exchange Commission, Midwest (MWX) said it rejected AirTran (CQT)'s proposal, because it undervalued the company and "did not reflect the long-term opportunity inherent in [Midwest (MWX)'s] strategic growth plan."
Midwest (MWX) will add six new destinations as well as a dozen new routes in 2007. For the long term, the company is considering new airplanes to replace its MD-80 fleet. The Milwaukee-based company operates a fleet of 36 airplanes, while its regional subsidiary Midwest Express flies 19 airplanes.
In December, Midwest (MWX) forged a deal with SkyWest Airlines to operate up to 25 CRJs, which company officials said will yield $8 to $10 million in annual revenue per 50-seat jet. It also is adding two MD-80s that are expected to generate up to $50 million in annual revenue.
Midwest Airlines (MWX) added a fifth weekday flight between Kansas City (MCI) and New York LaGuardia, and an eighth weekday flight between (MCI) and Milwaukee.
Midwest Airlines (MWX) signed a deal with SkyWest Airlines to operate up to 25 50-seat CRJs in a move that would expand operations and open new markets. The agreement calls for SkyWest to operate 15 - 25 airplanes over a five-year period, with the first 15 delivered between April and October 2007. The delivery schedule for additional airplanes has yet to be determined. Over the past several weeks, Midwest (MWX) has been trying to stave off the unwanted advances of AirTran Airways (CQT), which is trying to buy the Milwaukee-based carrier. The agreement with SkyWest is part of Midwest (MWX)'s overall growth plan, which eventually will include addition of either A320s or 737-800s to the current fleet of 25 717s and 11 MD-80s.
The SkyWest airplanes will be painted in Midwest (MWX) livery, outfitted with leather seats and feature Midwest (MWX)'s buy-on-board meals and chocolate chip cookies. The CRJs will fly out of Milwaukee and Kansas City. Wholly owned Midwest (MWX) subsidiary Skyway Airlines will continue to operate its fleet of 328JETs and Beech 1900s under the Midwest (MWX) Connect brand.
"We chose SkyWest because of their experience, their excellent record of operational performance and a commitment to customer service that mirrors that of Midwest (MWX)," VP and Chief Marketing Officer Scott Dickerson said. "SkyWest and Midwest (MWX) have similar corporate cultures," said SkyWest Executive VP & CFO, Bradford Rich. "This transaction also furthers certain of our strategic diversification objectives by adding an additional partner and creating additional expansion opportunities."
Midwest (MWX) also announced plans to reconfigure its MD-80 cabins currently equipped with two-by-three seating with several additional rows of two-by-two seats.
Midwest Airlines (MWX) signed an agreement to acquire two MD-80s that will be used to expand long-haul flying from its Milwaukee hub. "The acquisition of these airplanes provides new opportunities for Midwest (MWX) and its customers," said Senior VP & CMO, Scott Dickson. The airplanes will be placed into service in the first half of 2007, with routes and schedules to be announced at a later date. Midwest (MWX) currently operates a fleet of 11 MD-80s and 25 717s. With its wholly owned subsidiary, Midwest Connect, it provides service to 47 cities.
January 2007: In the fourth quarter, Midwest Air (MWX) Group earned a $3.6 million profit that compares to a $13.8 million loss in the year-ago quarter. Operating result swung to a $1.9 million profit from a $14 million deficit.
AirTran (CQT) Holdings raised its stakes with a new exchange offer for shares of Midwest Air (MWX) Group, announcing it would pay $13.25, including $6.25 in cash, and 0.5884 shares of AirTran (CQT)stock for each outstanding Midwest (MWX) share.
The new offer values the Milwaukee-based parent of Midwest Airlines (MWX) at $345 million and represents a +18% hike compared to AirTran (CQT)'s previous offer of $11.25 per share or $290 million.
"We made it pretty clear when we put our offer out, that we weren't going to go away," AirTran (CQT) CEO, Joe Leonard said. Midwest (MWX) had "stonewalled, without a doubt," so AirTran (CQT) opted to take the issue to the company's stockholders, he said.
Earlier, Midwest (MWX) had unveiled its plan to boost revenue and increase capacity this year in an effort to bolster shareholder value and fend off AirTran (CQT), whose offer increase came the day after US Airways (AMW)/(USA) took the same tack in its pursuit of Delta Air Lines (DAL). Midwest (MWX) shareholders have until February 8 to submit their shares, Leonard said.
AirTran (CQT) has set up a wholly owned subsidiary based in Wisconsin, Galena Acquisition Corp, to handle the transaction. Morgan Stanley and Credit Suisse are serving as financial advisers.
Midwest (MWX) released a statement advising shareholders to take no action and allow time for the company's board of directors to "review and consider" the offer. It said the board would make a recommendation within 10 business days. Goldman Sachs, hired by Midwest (MWX) in December as a financial adviser, also will review the plan.
Later, AirTran Holdings (CQT), which has launched a tender offer to acquire control of Midwest Air Group (MWX), said that the latter's plan for growth is "not well suited for low-cost competition" and relies too heavily on the use of older airplanes such as 50-seat CRJs and MD-80s. Recently, Midwest (MWX) unveiled its plan to boost revenue and increase capacity in an effort to bolster shareholder value and fend off AirTran (CQT)'s takeover effort. AirTran (CQT) responded by launching an exchange offer valuing Midwest (MWX) at $345 million.
In recent comments, AirTran (CQT) said that an estimated 58% of Midwest (MWX)'s revenue is concentrated in its top 20 markets, with nearly 25% coming from the top five. The carrier's success depends on average fare premiums on routes such as Milwaukee - Boston and Milwaukee - New York LaGuardia, on which it provides the only nonstop service, but AirTran (CQT) contended these routes likely will face competition in the future. It said it has hesitated to attack "Midwest (MWX) vulnerabilities" that would weaken the company and instead would prefer to merge the two airlines and incorporate the Midwest (MWX) network, its employees and markets. "The value of the company is more than simply the hard assets," AirTran (CQT) said. "Combining the strengths of Midwest Airlines (MWX) and AirTran Airways (CQT) will create one of the strongest airlines in the USA."
AirTran (CQT) Holdings went to court in an attempt to force Midwest Air (MWX) Group to release its list of shareholders. AirTran (CQT) claimed that Midwest (MWX) management is withholding the list in an attempt to thwart AirTran (CQT)'s effort to present its takeover offer, and it asked the New York State Supreme Court to direct Midwest (MWX) to show cause as to why it is not complying with state law. A hearing is set for January 30.
Midwest Air (MWX) Group can attempt to fend off AirTran Airways (CQT)'s hostile takeover bid, from a position of perceived strength following its announcement that it returned to the black, posting a 2006 net profit of +$5.4 million after losing -$64.9 million in 2005.
"The board believes that Midwest (MWX) and its shareholders are poised to realize the benefits of Midwest (MWX)'s long-term strategic plan, and that today's earnings announcement indicates that those efforts are driving growth for the company," Chairman & CEO, Timothy Hoeksema said as the airline announced that its board was unanimous in recommending shareholders refuse to tender their shares to AirTran (CQT).
Among the figures to which Midwest (MWX) could point was a +27.1% year-over-year surge in full-year revenues to $664.5 million. A lesser +12.9% rise in expenses to $663.9 million was part of its turnaround to a +$592,000 operating profit from a -$65.2 million loss in 2005.
Midwest Airlines (MWX) and Midwest Connect flew 4.09 billion (RPM)s passenger traffic last year, up +21.5%, against a +12.9% increase in (ASM)s capacity to 5.42 billion, lifting load factor +5.2 points to 76.2% LF. The group's fleet remained static at 55 airplanes. Unit revenues rose +13% to 10.97 cents and yield climbed +5.4% to 14.4 cents. (CASM) remained at 12.25 cents, but fell -6.7% to 7.97 cents excluding fuel.
Hoeksema said the group will increase capacity +15% in 2007 and approximately +10% each year over the ensuing three years. "Our customers will benefit from aggressive route expansion and equipment upgrades in 2007, as well as the addition of at least six new destinations and as many as 12 new routes," he said. Revenues are expected to exceed $825 million. One of the new destinations will be Seattle/Tacoma, which it will serve daily from Kansas City from April 1.
February 2007: Midwest Airlines (MWX) flew 302.4 million (RPM)s passenger traffic in January, a +15% increase over the year-ago month. Capacity climbed +8.5% to 448.6 million (ASM)s and load factor rose +3.8 points to 67.4% LF. It estimated a +0.3% increase in yield to 12.1 cents and a +6.2% rise in passenger (RASM) to 8.16 cents.
AirTran (CQT) Holdings said that it has extended the deadline on its exchange offer for shares in Midwest Air (MWX) Group to March 8 from February 8 "so that Midwest (MWX)'s shareholders can receive all the information they need." AirTran (CQT) filed suit in the New York Supreme Court to force Midwest (MWX) to release shareholder names and said that Midwest (MWX) "should provide a level playing field for its shareholders to fairly consider AirTran (CQT)'s proposal" if management "is so confident about its 'stay-the-course, go-it-alone plan.' " AirTran (CQT) said 38,966 shares of Midwest (MWX) common stock have been tendered pursuant to the offer so far. In conjunction with the extension, it said it would nominate three individuals to Midwest (MWX)'s board at the next annual shareholders meeting, among them recently retired Atlas Air Worldwide Holdings (TLS/PAO), President & CEO, Jeffrey Erickson.
AirTran Airways (CQT)'s bid to acquire Midwest Airlines (MWX) was dealt a slight setback, when the New York Supreme Court ruled the carrier was not entitled to a list of Midwest (MWX) shareholders. AirTran (CQT), which sought to take its $345 million tender offer directly to shareholders, said it will appeal the ruling and continue to provide information about its merger proposal to Midwest (MWX) shareholders. "Because AirTran (CQT) could not meet Wisconsin's statutory requirements for obtaining the names of our shareholders, they formed a New York subsidiary company, AirTran (CQT) New York LLC, in an attempt to take advantage of that state's law and thereby circumvent Wisconsin law," Midwest Senior VP Corporate Development, Carol Skornicka said.
Midwest (MWX) said holders of the remaining $21.6 million of senior secured convertible debt have completed the conversions of their respective positions to equity. Chairman & CEO, Tim Hoeksema said the transaction will reduce annual interest expense by -$1.5 million.
Air Tran Airways (CQT) said a merger with Midwest Airlines (MWX) would create +1,100 new jobs in Milwaukee and add +74 flights out of Mitchell International Airport. In a filing with the USA (SEC) this week, AirTran (CQT) offered details that painted a positive economic outlook if it acquires Midwest (MWX), estimating that the total economic benefit to Wisconsin would be nearly +$1 billion annually. New jobs would comprise +396 flight attendants (CA), +315 customer service employees, +264 pilots (FC), +66 mechanics (MT), 50 reservations agents, and 25 management and administrative employees. But Midwest (MWX) officials continue to rebuff all overtures. Senior VP, Carol Skornicka told the "Milwaukee Journal Sentinel" that the filing was "unrealistic and inconsistent with their previous filings."
Starting May 1st, Omaha - Los Angeles, using 717-200s, & Kansas City - Columbus, using CRJ-200s.
Twenty-two additional carriers reportedly have joined AirTran Airways (CQT), Alaska Airlines (ASA), ATA Airlines (AAT), Frontier Airlines (FRO), Midwest Airlines (MWX), Southwest Airlines (SWA), and US Airways Group (AMW)/(USA) in filing a joint complaint with the USA Dept of Transportation (DOT) opposing new terminal charges at Los Angeles International Airport (LAX), which this week broke ground on a $723.5 million renovation of its Bradley International Terminal. (LAX) raised fees on February 1 to help pay for "much-needed airport improvements," operator Los Angeles World Airports (LAWA) said in a statement in response to this month's original (DOT) filing by the initial seven carriers. "In recent years, (LAWA) has absorbed the increasing costs to maintain and operate its terminals and other facilities at (LAX) without passing these costs on to airline tenants," it said.
But the seven airlines "estimate the collective financial impact [of the new charges] over the next 15 to 20 years at more than >$1 billion, with a near-tripling of charges from $20 million to $56 million in the first year alone," they said in a joint statement. "(LAWA) is not a private commercial landlord," their (DOT) filing noted. "Rather, (LAWA) is a public utility with monopoly power over the airlines wishing to serve (LAX) . . . access to (LAX) on fair and nondiscriminatory terms is essential." (LAWA) responded that while the new charges "may not be well received by some airlines," its previous model for assessing rent "is outdated and does not reflect the current aviation environment."
March 2007: Midwest Airlines (MWX) said in a letter to shareholders that "AirTran (CQT)'s business is deteriorating" and that it wants to acquire Midwest (MWX) to prevent further erosion. "AirTran (CQT)leaves a trail of broken promises in markets it enters, with great fanfare," said the letter signed by Midwest (MWX) Chairman & CEO, Tim Hoeksema. "AirTran (CQT) typically promises growth and enhanced service, only to retreat, when it can't keep its word." AirTran (CQT) filed documents with the Securities & Exchange Commission (SEC), detailing its business plan for the proposed merger, saying it would bring +1,100 jobs to the Milwaukee area, and boost the Wisconsin economy by +$1 billion. Midwest (MWX) urged shareholders to continue to support its efforts to remain independent and refuse to tender shares to AirTran (CQT).
Later, AirTran Airways (CQT) responded to Midwest Airlines (MWX)'s accusation that "AirTran (CQT)'s business is deteriorating," saying that its "record speaks for itself." AirTran (CQT) said that "Midwest (MWX)'s comments are out of line, and inconsistent with the reality of the market. AirTran (CQT)'s plan is focused on jobs and economic growth in the Milwaukee community and we will continue to push our proposal, which we believe will create greater value for Midwest (MWX) shareholders." It claimed it will add +29 destinations and +74 flights, as well as create +1,100 jobs at Midwest (MWX)'s Milwaukee base as part of its $345 million tender offer.
Midwest (MWX) contends that AirTran (CQT) will pull out if Milwaukee does not meet expectations and called the forecast "extremely unrealistic." Midwest (MWX) VP, Carol Skornicka said that "clearly this is not a profitable plan, so the promises are not likely to be kept. If they ever do start to serve these destinations with this many flights, they are not likely to remain for long."
This was followed by AirTran (CQT) Holdings extending the deadline on its offer to Midwest Air (MWX) Group shareholders in hopes the two sides will reach a deal. The $345 million stock and cash exchange offer was due to expire but was pushed back to April 11. Meanwhile, AirTran (CQT) continues its campaign to win over Midwest (MWX) shareholders and has nominated three candidates for Midwest (MWX)'s board, none of whom are connected to either airline but who have experience in "corporate business issues," Senior VP, General Counsel & Secretary, Richard Magurno said. "I think we will have a good chance of ousting the elected board," he said. Midwest (MWX) has not set a date for the next board meeting. Thus far, 1.7 million of Midwest (MWX)'s 24.1 million outstanding shares have been tendered, Magurno said, adding, "I think Midwest (MWX) was surprised about the number of shares that have been tendered."
Starting June 1st, Milwaukee - Raleigh, using CRJ-200s; and June 18th, Milwaukee - Seattle, using 717-200s.
April 2007: Midwest Airlines (MWX) and Midwest Connect flew 403.8 million (RPM)s passenger traffic in March, up +8.1% on the year-ago month. Capacity rose +6.3% to 494.1 million (ASM)s and load factor increased +1.4 points to 81.7% LF.
Midwest Air (MWX) Group reported a +$8 million profit for the first quarter, reversing a -$8.7 million loss in the year-ago period, as operating revenue climbed +10% to $165.8 million and expenses dipped -0.6% to $159 million, turning a 2006 operating loss of -$9.3 million into an operating profit of +$6.7 million. "While the first quarter of 2007 was positive on several levels, overall it fell short of our expectation," said Chairman & CEO, Tim Hoeksema. The carrier has spent $2.6 million thus far defending itself against an unwelcome takeover effort by AirTran (CQT), but Hoeksema declined to speculate about yet another offer. "The Board takes its responsibility very seriously and would consider anything that comes on our plate and that is what we have done up to this point," he said. (RPM)s traffic increased +9.5% to 1 billion in the quarter on a +6.3% (ASM) lift in capacity, sending load factor up +2.2 points to 73.7% LF. (RASM) rose +4.7% to 11.71 cents, (CASM) declined -5.4% to 11.23 cents and (CASM) excluding fuel, was down -10.7% to 7.1 cents.
Midwest Airlines (MWX) launched daily Kansas City (MCI) - Seattle flights aboard 717s.
The board of Midwest Air (MWX) Group reviewed and unanimously rejected AirTran (CQT) Holdings' third merger proposal, prompting the Atlanta-based carrier to label its target "irresponsible" and "delusional." Midwest (MWX) Chairman & CEO, Tim Hoeksema said AirTran (CQT)'s revised offer of $15 in cash and stock per share, which valued the company at approximately $389 million, once again "does not take into account the long-term value of our strategic plan." Midwest (MWX) also said it received an oral opinion from Goldman, Sachs & Co last week that the offer was "inadequate." AirTran (CQT) Chairman & CEO, Joe Leonard said the board's decision "flies in the face of good corporate governance and is clearly irresponsible." AirTran (CQT) will move forward with its effort to seat three Midwest (MWX) directors at the rescheduled June 14 annual shareholders meeting, he continued. Midwest (MWX) shares closed at $14.62, below AirTran (CQT)'s offer of $15.75 each. Midwest (MWX) argued that its improved 2006 performance, in which it reported a +$5.4 million profit after losing -$64.9 million in 2005, "provides clear evidence of the strength of its strategic plan."
It called AirTran (CQT) "opportunistic" and said its suitor was attempting "to take advantage of the significant strategic initiatives undertaken and investments made by Midwest (MWX) during the recent down cycle in the airline industry." It also said its $171 million in cash in hand represents more than 70% of the cash portion of AirTran (CQT)'s latest offer. In addition, Midwest (MWX)said its stock price has risen +158% against a -29% fall in AirTran (CQT) shares during the past year. However, it also conceded that a difficult first quarter, in which severe weather played havoc throughout the USA Midwest, has forced it to revise its full-year earnings projection. It will report a "heavier loss than normal," when it releases its first-quarter results on April 26, a Midwest (MWX) spokesperson said, and now forecasts full-year (EPS) of $1.30 to $1.50 rather than earlier projections of $1.70 per share.
May 2007: Starts Kansas City - Columbus using CRJ-200s, and Omaha - Los Angeles, using 717-200s. Starting June 1st, Milwaukee - Raleigh, using CRJ-200s. Starting July 1st, Kansas City - Colorado Springs; - Madison, using CRJ-200s.
AirTran (CQT) Holdings extended its tender offer to Midwest Air (MWX) Group shareholders to June 8 following the recent expiration, the third time it has pushed back the deadline on a bid, that repeatedly has been rejected by the Milwaukee-based carrier since it first was made public last December. Meanwhile, Midwest (MWX) strengthened its position by entering into a codeshare agreement with longtime rival Northwest Airlines (NWA). AirTran (CQT) said Midwest (MWX)shareholders have agreed to tender more than >13.9 million shares, or 56.6% of outstanding shares, to Galena Acquisition Group, a wholly owned AirTran (CQT) subsidiary established to handle the merger. "Nothing has changed as far as control of Midwest Air (MWX)Group is concerned. No shares have been purchased by AirTran (CQT)," Midwest (MWX) Senior VP, Carol Skornicka said. "The exchange offer is subject to numerous conditions. Regardless of the number of shares tendered, AirTran (CQT) would not purchase shares unless those conditions are waived and satisfied." She also pointed out that Wisconsin state law protects companies from hostile takeovers. AirTran (CQT) CEO, Joe Leonard said the 56.6% level constitutes a "ringing endorsement" for a merger and suggested it represents a "vote of no confidence in Midwest (MWX)'s risky go-it-alone plan." But Midwest (MWX) no longer is going it alone following yesterday's codeshare announcement. Apparently preferring an alliance with its neighbor over a strengthened AirTran (CQT), (NWA) signed a Memo of Understanding (MOU) under which both carriers' networks will be expanded by 250 city-pairs and more than >1,000 new flight options for passengers. The arrangement will take effect this summer pending final agreement.
Midwest (MWX) shareholders will elect three directors to the board at the company's June 14 annual meeting. AirTran (CQT) is promoting a slate of three candidates who support the merger, while Midwest (MWX) is urging shareholders to reelect current board members. Investment group Octavian Advisors, which controls 6.6% of Midwest (MWX), issued a statement urging shareholders to support the merger.
Midwest Airlines (MWX) will reconfigure and add seats to its fleet of MD-80s and 717s in an $8 million project, it estimates will generate up to $35 million in annual incremental revenue. Passengers will have the choice between "Signature" service featuring a 2-2 layout previously available only on the 717 and Saver, a 2-3 layout previously offered only on the MD-80. The MD-80s will have 12 Signature and 132 Saver seats, while the 717s will move to a mix of 40 Signatures and 59 Savers. The MD-80s will be ready in the fall and the 717s are expected to be reconfigured by mid-2008.
Midwest said that adding 11 Saver seats and reducing Signature seating on its 717s will drop unit costs and increase capacity +12.5%. Seats will be priced differently, but cabin service will remain the same, Chairman & CEO, Tim Hoeksema said. He denied the move was a response to AirTran (CQT)'s takeover bid and said it is part of a long-range strategic plan.
June 2007: Midwest Air (MWX) Group flew 413 million (RPM)s passenger traffic in May, up +21.6% from the year-ago month, on a +18.5% climb in capacity to 518.7 million (ASM)s. Load factor rose +1.8 points to 79.9% LF. Yield fell an estimated -8.1% year-over-year to 13.6 cents, while scheduled service unit revenue declined -6% to an estimated 10.8 cents.
Midwest Airlines (MWX) is expanding its existing codeshare with Mesa Air Group subsidiary Air Midwest. Midwest Airlines (MWX) passengers in Kansas City now will be able to connect to Columbia/Jefferson City, Joplin and Kirksville, Missouri, and Grand Island, McCook and Omaha, Nebraska.
AirTran (CQT) Holdings once again extended its tender offer to Midwest Air (MWX) Group shareholders, this time through August 10. When the third extension expired on June 8, Midwest (MWX) shareholders had agreed to tender 59.5% of outstanding shares, or 64.1% of the outstanding shares, not held by members of Midwest (MWX)'s board or management. AirTran (CQT)'s current offer values Midwest (MWX) at $389 million.
With a critical vote by shareholders for its board of directors coming shortly, Midwest Airlines (MWX) said that second-quarter earnings will "fall short of analysts' expectations" and could dip below the +$8.8 million earned in the 2006 second quarter, a revelation quickly seized upon by AirTran (CQT) Holdings as supporting its attempt to acquire the Milwaukee-based carrier. Midwest (MWX) Senior VP & CFO, Curtis Sawyer said "softening yields" were to blame. "The shortfall is primarily attributable to industrywide price weakness, that may persist in the USA domestic market for some time," he explained. "The company's full-year results are likely to be adversely affected, but the amount and duration of the impact cannot be accurately determined at this time." Midwest (MWX) previously had forecast earnings of $1.30 to $1.50 per share for the full year 2007, but said that guidance is suspended and a new forecast will be provided later in the year. Midwest Air (MWX) Group shareholders will elect three directors to the board at the company's annual meeting. AirTran (CQT) is promoting a slate of three candidates who support the merger, while Midwest (MWX) is urging shareholders to reelect current board members. AirTran (CQT) this week extended its tender offer through August 10, marking the fourth such extension. The current offer values Midwest (MWX) at $389 million. "As we have stated many times over the last several months, AirTran (CQT) believes that Midwest (MWX)'s standalone plan is flawed," AirTran (CQT) Chairman & CEO, Joe Leonard said, noting the earnings warning. "Midwest (MWX) shareholders again have the opportunity to have their voices heard and counted. By voting for AirTran (CQT)'s [board] nominees, they are voting to change the dynamics . . . in favor of having the board and management explore the merits of a combination with AirTran (CQT)."
Midwest (MWX) Chairman, President & CEO, Timothy Hoeksema told shareholders in a recent letter, that the AirTran (CQT) offer "undervalues Midwest (MWX) and does not fully reflect the long-term value of Midwest (MWX)'s strategic plan."
AirTran (CQT) Holdings may have nudged Midwest Air (MWX) Group a step closer to a merger after its three candidates were elected to the nine-member Midwest (MWX) board.
In light of the change, Midwest (MWX) said it would permit AirTran (CQT) to present its takeover proposal to the board. But at the same time, the Milwaukee-based carrier made a point of stating that it had made "no determination to engage in negotiations with AirTran (CQT)."
Based on a preliminary vote count, AirTran (CQT) nominees John Albertine, Jeffrey Erickson and Charles Kalmbach received an estimated 65% of shares voted. The results will be certified and announced June 26. "While we are disappointed by these results, we recognize that our shareholders have spoken," Midwest (MWX) Chairman & CEO, Timothy Hoeksema said. "If today's election says anything at all, it says that our shareholders want us to listen and that is what we intend to do."
Earlier, AirTran (CQT) had extended its tender offer until August 10. The offer values Midwest at $389 million in cash and stock, and thus far, shareholders have agreed to tender 59.5% of all outstanding shares not owned or held by Midwest's board or management.
"This is an important victory for all Midwest (mwx) shareholders," AirTran (CQT) Chairman & CEO, Joe Leonard said. "There is clearly a strong desire among Midwest (MWX) shareholders for positive corporate governance change and for Midwest (MWX) to fully and fairly consider the merits of a combination with Air Tran (CQT)."
AirTran (CQT) Holdings announced that independent inspectors for Midwest Air (MWX) Group confirmed that shareholders representing 65% of the company's shares, elected three AirTran (CQT) nominees to the Midwest (MWX) board at a recent election, and that AirTran (CQT) will meet with the newly constituted Midwest (MWX) board on July 16 regarding its bid to buy the Milwaukee-based airline. "We plan to review, in detail, the benefits of a merger of our two companies, and then move expeditiously to effect a definitive merger agreement," AirTran (CQT) Chairman & CEO, Joe Leonard said.
Midwest (MWX) announced that second-quarter earnings would "fall short of analysts' expectations" and could dip below the +$8.8 million earned in the 2006 second quarter, a revelation quickly seized upon by AirTran (CQT) Holdings to bolster its takeover bid.
MD-88 (49759, N11FQ), (GEF) leased.
July 2007: Midwest Airlines (MWX) and Midwest Connect flew a combined 447.4 million (RPM)s passenger traffic in June, up +18.4% from the year-ago month. Capacity climbed +15.4% to 518.3 million (ASM)s and load factor was up +2.2 points to 86.3% LF. Yield fell an estimated -5.4% year-over-year to 14.2 cents and unit revenues dropped an estimated -2.9% to 12.2 cents.
Midwest Air Group (MWX) reported second-quarter earnings of +$4.9 million, a -44.6% drop from the +$8.8 million profit, posted during the same period a year ago. Operating revenue rose +10% to $194.5 million, which the company attributed to a +15.8% increase in passenger traffic. "While the pricing environment was challenging, the demand for travel remained strong in the second quarter," CEO, Timothy Hoeksema said. Operating income plunged +65.9% to +$2.6 million from $7.5 million in the year-ago quarter, as expenses climbed +13.4% to $192 million.
Midwest Airlines (MWX) and Midwest Connect flew 1.26 billion (RPM)s passenger traffic during the quarter, up +15.8% year-over-year, against a +13.1% increase in (ASM)s to 1.52 billion. Load factor was up +2 points to 83.3% LF. Yield dropped -5.3% to 13.75 cents, unit revenue declined -2.5% to 12.73 cents and unit cost inched up +0.5% to 12.56 cents. Nonfuel (CASM) rose +2.5% to 8.22 cents. For the half-year, net income of +$12.9 million represented vast improvement over the +$120,000 posted in the 2006 period. Operating result swung to a +$9.3 million profit from a -$1.7 million loss. Hoeksema said Midwest (MWX) will continue to pursue its plan of "aggressive route expansion, frequency increases and equipment upgrades," that he claimed will "enhance the value of the company for shareholders by significantly improving profitability."
MD-88 (49766, N12FQ), (GEF) leased.
August 2007: Midwest Airlines (MWX) and Midwest (MWX) Connect flew a consolidated 489.3 million (RPM)s passenger traffic in July, up +25.9% from the year-ago month. Capacity rose +24.9% to 578.6 million (ASM)s, and load factor gained +0.7 point to 84.6% LF. The company estimated a -3.6% decline in yield to 13.63 cents and a -3.5% fall in (RASM) to 12.58 cents.
Midwest Air (MWX) Group took a further step toward a possible acquisition by AirTran (CQT) Holdings, which has been pursuing it for more than eight months, announcing it had appointed a committee to "commence discussions with AirTran (CQT) regarding its proposal to acquire all the outstanding shares of Midwest (MWX)." The company added that the committee also will "hold discussions with other strategic and financial parties that have recently expressed interest in pursuing a transaction with Midwest (MWX)." The decision came a few days after the Milwaukee-based carrier reported a -44.6% drop in second-quarter earnings. In June, AirTran was (CQT) successful in getting a slate of three directors elected to the nine-person Midwest (MWX) board.
AirTran (CQT) welcomed the move. "We are pleased that Midwest (MWX) has taken the step to form a special committee and we look forward to working with that committee," AirTran (CQT) CEO, Joe Leonard said.
Later, Midwest Air (MWX) Group closed the door on an acquisition by eager AirTran (CQT) Holdings, opting instead to pursue an unexpected all-cash deal offered by private equity investment firm Texas Pacific Group (TPG) Capital, which is partnering with Midwest (MWX) neighbor Northwest Airlines (NWA). (TPG) Capital, which has been involved in recent bids for Qantas (QAN), Alitalia (ALI), and Iberia (IBE), could finalize a "definitive" merger agreement with Midwest (MWX) as early as August 15, both (TPG) and Midwest (MWX) said.
On July 31, Midwest (MWX) announced it would open talks with AirTran (CQT), but also said it would hold discussions with other groups that had expressed an interest in the company. AirTran (CQT) had offered $15.75 per Midwest (MWX) share, with a total equity value of cash and stock in excess of >$431 million, the Atlanta-based carrier said.
Recently, Midwest (MWX) board members unanimously approved the pursuit of (TPG)'s offer of $16 cash per share. (NWA) released a statement saying that it would provide some financing, but would not participate in management or control of Midwest (MWX). "The previously announced codeshare agreement between (NWA) and Midwest Airlines (MWX) will remain in place and the two airlines will explore cost reduction activities such as joint fuel purchasing," it said.
"Our acquisition would provide for greater stability and prospects for all of the company's important constituencies," (TPG) Capital Partner Richard Schifter wrote in the proposal letter to Midwest (MWX). "We believe that our experience in this sector, together with our track record for maintaining stable, long-term investments, argue strongly in favor of an acquisition by (TPG)."
In announcing its decision to drop its bid, AirTran (CQT) rebuked Midwest (MWX)'s decision, noting that the board was ignoring the "overwhelming majority" of shareholders' wishes. "Instead, the Midwest (MWX) board has chosen a path that will benefit current senior management by selling to a private equity firm and a so-called 'passive investor' [NWA] whose involvement will surely raise antitrust concerns, causing doubt for shareholders on whether a transaction can, in fact, close," AirTran (CQT) CEO, Joe Leonard said.
This was followed by AirTran (CQT) Holdings raising its bid for Midwest Air (MWX) Group, offering $16.25 per share in cash and stock, exceeding the $16 per share cash offer from (TPG) Capital and Northwest Airlines (NWA), that was endorsed unanimously by the Midwest (MWX) board. AirTran (CQT) estimated the total value of its new offer at $445 million. "Midwest (MWX)'s shareholders are concerned that the acquisition of Midwest (MWX) by a private equity firm, along with Northwest Airlines (NWA), will block competition, raise fares, reduce employment levels and reduce service," AirTran (CQT) Chairman & CEO, Joe Leonard said. He reiterated that antitrust issues could prevent a (TPG)/Midwest deal from closing. The new offer comprises $10 cash per share and 0.6056 share of AirTran (CQT)common stock.
Pequot Capital Management, an investment firm that holds an estimated 8.8% of Midwest (MWX), urged the company to reconsider its decision to support (TPG)'s bid, saying it still believed that AirTran (CQT)would be the better choice, according to press reports. Midwest (MWX) released a statement saying the board "will take AirTran (CQT)'s revised offer under consideration."
Analysts at Raymond James & Assoc said Northwest (NWA)'s involvement was designed to keep a low-cost competitor out of its Midwestern USA stronghold. "Northwest (NWA), in our view, would dismantle Midwest (MWX) over time and integrate its operations into Northwest (NWA)," the report said.
Later still, Midwest Airlines (MWX), which accepted a cash buyout offer of $17 per share from (TPG) Capital and Northwest Airlines (NWA), could end up being owned by Northwest (NWA), a (TPG) partner acknowledged. (NWA) repeatedly has been described as a "passive investor" in the $450 million all-cash deal. "It's not anything that we see happening in the near term," (TPG) partner, Richard Schifter said during a conference call, when asked if (NWA) might acquire Midwest (MWX). "At this stage, we see various exit options as a firm. The public market is one. Another is a sale to Northwest (NWA), but by no means is that the exclusive one." He declined to reveal the size of (NWA)'s investment or stake.
Northwest (NWA) reiterated that it would hold a "nonmanaging and nonvoting" role in the limited liability company, it formed with (TPG) to acquire Midwest (MWX), adding that it will "have no involvement or decision-making authority in the management" of the airline. It maintains "the right, but not the obligation to acquire (TPG)'s interest in the company in certain circumstances" but has "no current plans to exercise that right." "We believe this is a positive for our shareholders, our customers, our employees and the community we serve," Midwest (MWX) Chairman & CEO, Timothy Hoeksema said. "It preserves the hometown service as well as the strong Midwest (MWX) brand."
Schifter said (TPG) developed an interest in Midwest (MWX) last month and described it as "a quality airline with a terrific management team and employee workforce." Midwest (MWX)'s second-quarter profit fell -44.6% year-over-year to +$4.9 million.
The purchase still must be approved by Midwest (MWX) stockholders and antitrust authorities. The company expects to complete the transaction by year end. Hoeksema pointed out that the carrier already codeshares with (NWA), and that the pair could benefit from additional "synergies" such as bulk purchasing of fuel and insurance as well as in distribution.
AirTran (CQT) said it was ending its efforts to purchase Midwest (MWX). "We sought to acquire Midwest (MWX), because a merger made strategic operational sense and we pursued a deal vigorously," CEO, Joe Leonard said. "But AirTran (CQT) doesn't need to merge with any other carrier to achieve our business goals."
Sabre and launch customer Midwest Airlines (MWX) announced a new tool that will allow carriers to differentiate and sell premium seats in coach (B)/economy class (Y) through Sabre's Distribution Merchandising Suite. The new feature, which will be available on standard travel agency desktops, on the airline's website and at airport kiosks, will be introduced in conjunction with Midwest (MWX)'s Signature seating on its MD-80s this fall.
September 2007: Midwest Airlines (MWX), which accepted a cash buyout offer of $17 per share from (TPG) Capital and Northwest Airlines (NWA) last month, entered into a codeshare agreement with (NWA) for tickets purchased beginning November 3 for travel starting November 17. (NWA) has been described as a "passive investor" in the $450 million all-cash deal, and said it will be a "nonmanaging and nonvoting partner," but (TPG) partner, Richard Schifter has conceded that (NWA) could end up owning Midwest (MWX). Merrill Lynch analyst Michael Linenberg said that (NWA) will own 47% of the company, a "rather large minority stake." The first phase of the codeshare agreement will include (NWA)'s Hawaii-bound flights from Seattle, San Francisco and Los Angeles, with passengers beginning their journey on Midwest (MWX) flights in Milwaukee, Omaha and Kansas City. "This is just the first step in expanding the networks of both carriers," (NWA) VP Alliances, Nathaniel Pieper said. "Codesharing allows Northwest (NWA) to offer our customers the expanded reach of two airlines, while enjoying the convenience of a single ticket and check-in."
Midwest Airlines (MWX)'s recent sale to investment firm (TPG) Capital will result in hefty payouts of stock and cash to carrier executives, the Associated Press reported. Chairman, Tim Hoeksema reportedly will receive more than >$10 million in cash and stock, while VPs Carole Skornicka and David Reeve are in line for $1.6 million each. CFO, Curtis Sawyer and VP Scott Dickson will receive about $1 million each. Northwest Airlines (NWA) is the largest shareholder in the (TPG) acquisition.
October 2007: Midwest Air Group, parent of Midwest Airlines (MWX) and Midwest Connect, fell to a -$3.9 million loss in the third quarter, reversed from a +$1.7 million profit in the year-ago period. Revenue climbed +20.2% to $202.6 million, but costs were up +24.1% to $208.7 million, leaving the company at an operating loss of -$6.1 million, compared to the +$427,000 profit earned in the three months ended September 30, 2006. Group airlines flew 1.31 billion (RPM)s passenger traffic, up +25.1%, against a +23.7% increase in capacity to 1.66 billion (ASK)s. Load factor rose +0.9 point to 79% LF. Yield declined -3.2% to 14.01 cents, and unit revenue fell -2.7% to 12.18 cents. (CASM) grew +0.5% to 12.55 cents. Midwest (MWX)'s nine-month performance remained positive as its +$9 million profit compared to +$1.8 million in net earnings in the first nine months of 2006.
Midwest Air (MWX) Group (MAG) shareholders approved the company's acquisition by Midwest Air (MWX) Partners, an affiliate of (TPG) Capital. Each outstanding share of Midwest (MWX) common stock will be converted into the right to receive $17 per share in cash, (MAG) said. The transaction is expected to be completed during the current quarter. Northwest Airlines (NWA) also is participating in the acquisition and reportedly will hold 49% of Midwest (MWX).
November 2007: First 6 months = 3.44 billion (RPK)s (+11.54%); (+7.99%) (ASK)s; 78.5% LF (+2.5%); 2.28 million (FTK)s (-11.23%); 2.08 million passengers (+7.44%).
Midwest Airlines (MWX) is accepting online applications and is hiring Second in Command (SIC)s Flight Crew (FC).
December 2007: Midwest Air Group (MWX) said it has complied with requests for additional information from the USA Dept of Justice (DOJ) pertaining to its acquisition by TPG Capital and Northwest Airlines (NWA). It added that the parties have agreed not to complete the sale before January 31 without (DOJ) approval. It said closing will "occur as soon as practicable."
Midwest Airlines (MWX) is not currently hiring or accepting Flight Crew (FC) applications. The carrier predicts it will hire 25 pilots (FC) in 2008.
January 2008: Midwest Airlines (MWX) and Midwest Connect flew 350.1 million (RPM)s passenger traffic in December, a +4.3% rise from the year ago month. Capacity was up +9.6% to 516.9 million (ASM)s, lowering load factor -3.5 points to 67.7% LF.
2007 statistic: 6.79 billion (RPK)s +10.2%; +8.9% capacity (ASK)s; +.9 load factor for 77.7% LF. SEE ATTACHED COMPARISON CHART TO SELECTED OPERATORS - "MWX-2007-STATS" AND DOT FIGURES IN "MWX-2007-STATS-A."
Midwest Airlines (MWX) announced that Skyway Airlines, which provides regional lift as "Midwest Connect," will cease flying this spring, resulting in -380 layoffs, as operations are transferred to SkyWest Airlines under terms of a five-year agreement that took effect last April. The latter will use 50-seat CRJ-200s as opposed to the 32-seat Fairchild-Dornier 328s used by Skyway, and frequencies will decline in Skyway markets. SkyWest will take over flying in March and April, while Skyway will continue to offer ramp and dining services and customer service operations.
February 2008: Midwest Airlines (MWX) parent, Midwest Air Group (MAG) said that the USA Dept of Justice has completed its investigation of the company's acquisition by (TPG) Capital and Northwest Airlines (NWA), clearing the way for the sale's closing. Trading of Midwest Air (MWX) Group stock on the American Stock Exchange concluded as of the close of trading. "Shareholders of record . . . will be notified of the process to surrender their shares in exchange for the per-share merger consideration of $17 in cash, without interest, following the closing," (MAG) said.
AirTran Airways (CQT) and Spirit Airlines (SPR) were awarded slot exemptions at Washington National for service to either Jacksonville or Milwaukee (AirTran (CQT)) and Fort Lauderdale (Spirit (SPR)), the USA Dept of Transportation announced. Routes must be operational by May 3. Midwest Airlines (MWX) was awarded backup authority for a Milwaukee or Kansas City service, if either AirTran (CQT) or Spirit (SPR) does not commence service.
April 2008: Midwest Air (MWX) Group flew 435.7 million (RPM)s passenger traffic in March, up +7.9% from the year-ago month. Capacity climbed +11.8% to 552.3 million (ASM)s, dropping load factor -2.8 points to 78.9% LF.
Skyway Airlines, a regional subsidiary of Midwest Airlines (MWX) shut down as expected. In January, Midwest (MWX) announced that it would "reposition" Skyway as an airport service provider and shift its regional flying to SkyWest Airlines, which now operates 50-seat, CRJs on Midwest (MWX)'s behalf. In announcing the transition, Skyway CEO, David Reeve said that operating its fleet of 32-seat 328JETs had become more costly and complex because the airplanes no longer are in production. The move eliminates the jobs of 380 Skyway pilots (FC), flight attendants (CA), dispatchers and mechanics (MT). The remaining employees will provide support functions for Midwest (MWX).
Midwest Airlines (MWX) will eliminate positions for 109 employees, including 35 pilots (FC), who will be furloughed, and reduce flights by -2.5% owing to soaring fuel costs. "The actions . . . will enable us to maximize revenues, reduce our cost structure, provide sufficient cash, and help us weather the storm," CEO, Tim Hoeksema said. "These decisions, while difficult, are necessary to keep us strong in this turbulent time for the airline industry." The carrier eliminated -380 jobs earlier this month from its regional subsidiary Skyway Airlines after much of that flying was contracted to SkyWest Airlines.
Midwest Airlines (MWX) is not currently hiring or accepting applications. The carrier is in the process of furloughing pilots (FC). Midwest Airlines (MWX) estimates it will furlough 35 pilots (FC) between May and July.
American Airlines (AAL)'s schedule continued to be impacted heavily by (FAA)-mandated MD-80 inspections, as the carrier cancelled another 922 flights - - approximately 40% of its schedule - - while attempting to fly out of the accompanying public relations storm. Midwest Airlines (MWX) and Alaska Airlines (ASA) also pulled MD-80s from service in order to ensure compliance with the (FAA) airworthiness directives (AD)s. Midwest (MWX) cancelled 14 flights as it conducted additional inspections on auxiliary hydraulic pump wiring, while Alaska (ASA) cut 11 flights from its schedule to inspect wheel well wiring on nine airplanes. It echoed comments from (AAL) assuring that the "(FAA) inspections are focused on detailed, technical specifications and not safety-of-flight issues."
Midwest Airlines (MWX) sold an MD-81 to "Maple Leaf 119" of Florida. Meridian Aerospace Group served as exclusive agent for the seller.
May 2008: Midwest Airlines (MWX) began charging a $20 fee for checking a second bag.
June 2008: Midwest Airlines (MWX) COO, Joseph Kolshak resigned after four months on the job, according to widespread press reports. Kolshak, who came to Midwest (MWX) after it was acquired by TPG Capital, was a 20-year veteran of Delta Air Lines (DAL). He has just accepted a position as Senior VP Operations for United Airlines (UAL).
Midwest Airlines (MWX) promoted Leo Malloy to President of its Skyway airport operations and handling subsidiary.
Midwest Airlines (MWX) is grounding its 12 MD-80s "sometime near fall" as part of a restructuring effort, a spokesperson confirmed. "The decision, which is not without valid operational reasons, leaves Midwest (MWX) with very little long-haul capacity to access the western USA from Milwaukee," analyst Michael Boyd of The Boyd Group said. He argued that the move reduces the airline's competitiveness and leaves it more vulnerable to rivals. "It also makes Midwest (MWX) much less of a player at Milwaukee, and it means that Midwest (MWX) will have no real choice, pending a new fleet mix, but to focus on Kansas City as an expansion point," he said.
The MD-80s, inefficient in the new fuel cost environment, are used primarily for flights to cities like Los Angeles, San Francisco, and Seattle. It is unclear if Midwest (MWX)'s schedule on those routes will be reduced, eliminated or served by its 25 717s.
The MD-80 cut likely will spur additional layoffs at the Milwaukee-based carrier. In April, it announced the dismissal of -109 employees and a reduction in certain frequencies in an effort to save cash. The company also confirmed the hiring of the Seabury Group to assist with a restructuring plan.
July 2008: Midwest Air Group (MWX) CEO, Timothy Hoeksema told employees in a memorandum that he will take a -40% pay cut effective July 15, as part of a series of wage reductions across the company, the "Milwaukee Journal Sentinel" reported. He said Senior VPs will take a -25% cut, maintenance workers (MT) will be subject to -10% cuts , and professional staff -5%. Midwest (MWX)'s restructuring also includes the grounding of its MD-80 fleet.
Midwest Airlines (MWX) and its Skyway subsidiary will reduce the workforce by -40%, equal to approximately -1,200 employees, as a result of its decision to remove its MD-80s from service this fall, and in anticipation of "other schedule adjustments to be announced," it said. Midwest (MWX) announced -109 layoffs and a -2.5% schedule reduction in April, the MD-80 groundings in June, and wage cuts earlier this month. More was needed. "In order to successfully restructure, there is no way to avoid deep and painful reductions to our current workforce," Chairman & CEO, Timothy Hoeksema said. "We will go about this task with compassion and dignity." He is taking a -40% pay cut effective immediately.
Midwest (MWX) said affected employees will be notified and that the reductions will come via furloughs or position elimination, and will be spread throughout the airline. Most will occur "no later" than mid-September. It also is negotiating concessions with the Air Line Pilots Association and the Association of Flight Attendants.
Midwest Airlines (MWX) unveiled a revised flight schedule that will feature elimination of service to Fort Lauderdale, Fort Myers, and San Diego and an enhanced codeshare agreement with Northwest Airlines (NWA). Midwest (MWX) will ground its MD-80 fleet this fall and cut its workforce by -40%. "We will remain true to our mission of serving major business destinations with more nonstop flights from Milwaukee than any other airline," said Chairman & CEO, Timothy Hoeksema. From September 8, Midwest (MWX) will cease serving the aforementioned airports and only will fly to Los Angeles and Seattle, via Kansas City. Flights to Orlando International will operate during the winter only, with (MCI) passengers having to stop at (MKE).
It will stop operating mainline service to eight destinations also served by Midwest Connect: Baltimore, Hartford, Louisville, Muskegon, Raleigh/Durham, St Louis, San Antonio, and Wausau/Stevens Point.
Its codeshare deal with (NWA) will be expanded by more than >100 new city-pairs, comprising flights to destinations beyond (NWA)'s Detroit, Minneapolis/St Paul, and Memphis hubs. Codeshare flights will be available this month. The airlines started cooperating late last year.
August 2008: Midwest Airlines (MWX) has fallen behind on payments to General Mitchell Airport, owing some $1.1 million in gate fees, an airport spokesperson told the "Milwaukee Journal Sentinel." It is the latest in series of downward turns for the financially beleaguered carrier that recently announced it would cut its workforce by -40%, and ground its MD-80 fleet by September. Midwest (MWX) pays an estimated $700,000 each month in gate fees, according to an airport official. That figure should fall when it disposes of the MD-80s.
In June, the company confirmed the hiring of Seabury Group to assist with a restructuring plan. This month, Northwest Airlines (NWA) wrote off its $213 million investment in the partnership that owns Midwest (MWX), citing concerns about the carrier's financial position. Northwest (NWA) and TPG Capital acquired Midwest (MWX) in a $452 million transaction earlier this year.
September 2008: Midwest Airlines may be able to avoid filing for Chapter 11 bankruptcy, thanks to a $60 million investment package. As part of the deal, Republic Airways will loan $15 million to Midwest (MWX) for one year, with another $10 million to follow if financial goals are met. In exchange, Midwest (MWX) will lease a dozen Embraer EMB-170 jets from Republic and allow Republic to operate and service the airplanes, resulting in about -270 layoffs at Midwest (MWX). TPG Capital and Northwest Airlines (NWA) Corp, which purchased Midwest (MWX) in January, also have agreed to provide $35 million in financing. Northwest Airlines (NWA) will continue its code share and frequent-flier program arrangements with Midwest (MWX).
Midwest Airlines (MWX), which announced in July that it would cut -1,200 jobs, is laying off an additional -186 employees, according to Milwaukee's Capital Times. The cuts, to take effect November 7, include 72 pilots (FC), 82 flight attendants (CA) and 31 nonunion employees who work at the carrier's Milwaukee Mitchell hub.
Additionally, (MWX) reached an agreement in principle with Boeing Capital Corp (TBC) on renegotiated leases for its fleet of 717s. It will continue to fly nine of the original 25 717s it had on lease, while returning 16 to Boeing (TBC) this fall. "Operating a more fuel-efficient, flexible mix of airplanes makes good economic sense in this new energy environment," Hoeksema said, adding that Midwest (MWX) will continue negotiating with its pilots (FC) and flight attendants (CA) "on concessions necessary to align its labor costs to the marketplace." The agreement with Republic is for 10 years. All fuel will be purchased by Midwest (MWX). Republic said it also will loan Midwest (MWX) an additional +$10 million if "certain milestones" are achieved, adding that "the loan(s) is collateralized by all of Midwest (MWX)'s unencumbered assets."
Midwest Airlines (MWX) has 40 pilots (FC) on furlough status. The carrier expects to have approximately 271 pilots (FC) on furlough by the end of 2008. All MD-80s are expected to be parked in September.
November 2008: 1st 6 months = 3.19 billion (RPK)s traffic (-7.28%); -4.45% (ASK)s; 76.2% LF (-2.3%); 1.92 million (FTK)s freight traffic (-15.83%); 1.87 million passengers (-10.05%).
March 2009: Delta Air Lines (DAL) and Midwest Airlines (MWX) forged an alliance that will include code share flights, linked loyalty programs, joint marketing efforts and expanded access to airport lounges across North America. The agreement is an extension of an existing deal between (MWX) and (DAL) subsidiary, Northwest Airlines (NWA). The code share arrangement between (MWX) and (DAL) takes effect in June, with the loyalty program link to follow.
25 717-2BL's to be returned to Boeing Capital Corporation (TBC) and leased to Click Mexicana (AEB). Delivery will begin this month and replace (AEB)'s F 100s.
May 2009: Republic Airways Holdings reached an agreement with Midwest Airlines (MWX) to operate two 100-seat, EMB-190ARs with service scheduled to begin in August and September. Currently, Republic operates 12 76-seat EMB-170s under the Midwest Connect brand. (MWX) Chairman, President & CEO, Timothy Hoeksema said the new airplanes will enable Midwest (MWX) to once again offer nonstop service to the West Coast from Milwaukee.
June 2009: Republic Airways Holdings continued its shopping spree by acquiring Midwest Airlines (MWX) in a deal announced the same day it said it would buy Frontier Airlines (FRO). The (MWX) transaction, subject to appropriate regulatory approvals, is expected to close within 4 to 6 weeks. Republic's offer for (FRO) is valued at $108.8 million. "The acquisition will enhance the strategic positioning of Republic Airways," Chairman, President & CEO, Bryan Bedford said. "We will be exploring options to restore and enhance service to various cities as a critical piece of (MWX)'s historic, strong brand promise which was strained by the effects of record fuel costs in 2008 and the deep economic downturn in 2009."
Republic said it will acquire 100% of the equity of (MWX) and a $31 million secured note by (TPG) Capital, a Texas-based private equity firm that gained controlling interest of the Milwaukee-based carrier early last year. (TPG) paid $450 million for (MWX). Last September, Republic struck a deal under which it would operate 12 EMB-170s on behalf of Midwest Connect and offered the parent company a one-year, $15 million loan as part of the air services agreement. "At the time we acquired (MWX), we envisioned that it would ultimately become part of a larger airline and network, as the ability to operate as a small, independent carrier is increasingly challenging in this economic environment," (TPG) Capital Partner, Rick Schifter said. "This outcome is a successful one for (MWX), its customers and the communities it serves." He added that (TPG) will retain a "strategic stake in Republic."
Under the sale agreement, (MWX) will replace its fleet of 717s with EMB-190s. When the transaction is complete, (MWX) Chairman, Tim Hoeksema will leave the company and Bedford will take over as CEO.
July 2009: Frontier Airlines (FRO) and Midwest Airlines (MWX), both set to be acquired by Republic Airways Holdings, announced a code share agreement covering multiple routes out of Denver and Milwaukee that will begin "by late summer."
Republic Airways Holdings moved a step closer to acquiring Frontier Airlines (FRO) after a bankruptcy court judge approved Republic's proposal to purchase (FRO) for $108.8 million.
(FRO) reportedly has solicited other bids. If other offers come in before August 10, the court will hold an auction. (FRO) filed for Chapter 11 bankruptcy protection in April 2008.
Republic operates as Republic Airlines, Chautauqua Airlines and Shuttle America. Under the Republic proposal, (FRO) and its regional subsidiary, Lynx Aviation, would maintain their current names and continue to operate as usual. It is not clear whether headquarters will be moved from Denver to Republic's headquarters in Indianapolis.
On the same day last month that Republic moved to acquire (FRO), it also made a bid to purchase financially troubled Midwest Airlines (MWX) for $31 million in cash and debt. Republic President & CEO, Bryan Bedford will assume control of (MWX), which is expected to relocate its headquarters to Indianapolis.
EMB-190 (0231, N162HL), ex-Sky Air World, ex-(VH-SXO).
August 2009: Republic Airways Holdings reported second-quarter net income of +$14.1 million, down -50.4% from a +$28.4 million profit in the year-ago period, on a -18.2% fall in revenue to $320 million. Operating income dropped -18.4% to +$53.6 million from +$65.7 million as operating expenses lowered -18.2% to $266.3 million. During the quarter, Republic made a bid to buy bankrupt Frontier Airlines (FRO). A USA Bankruptcy Court has approved its $108.8 million proposal, but Southwest Airlines (SWA) is now considering making a higher offer.
Also in the quarter, Republic reached an agreement to acquire financially struggling Midwest Airlines (MWX), for which it currently operates 12 EMB-170s under contract. It said that it has completed that acquisition. It is in the process of taking delivery of nine EMB-190s and 12 37/50-seat regional jets, all of which will be placed in service by January. For the six months ended June 30, Republic reported a -65.5% decline in net income to +$16.3 million.
An estimated 100 Midwest Airlines (MWX) employees will lose their jobs following its acquisition by Republic Airways Holdings, a Republic spokesperson confirmed. Worker Adjustment and Retraining Notification Act letters, required by law when job changes are scheduled to occur, were sent to 158 (MWX) employees based at Milwaukee General Mitchell International (MKE) stating that layoffs will begin August 31. Of those who received the letters, 88 are flight crew (FC) members who may be able to join Republic after seniority list integration, according to the company. That integration will be determined by (MWX)'s Air Line Pilots Association and Republic's International Brotherhood of Teamsters representatives.
Republic said another 33 notified employees are mechanics (MT), some of whom will retain positions for Republic at (MKE). The remaining employees include administration and managerial workers who could be duplicates of existing administrative staff based in Indianapolis. (MWX) has around 1,600 employees.
In addition, Republic said that the (MWX) fleet of 99-seat 717s will be phased out and replaced by 99-seat EMB-190s. - - SEE ATTACHED ARTICLE & PHOTO - - "MWX-EMB-190-AUG09."
September 2009: Midwest Airlines (MWX) will lay off an additional -59 flight crew (FC) employees as it replaces its 717s with Republic Airlines EMB-190s, according to a filing with the Wisconsin Department of Workforce Development cited by the "Milwaukee Journal Sentinel." The new reductions will take effect October 1, with all of the 717s scheduled to be replaced by Republic-staffed airplanes by December. (MWX) cut about -100 positions last month.
(MWX) will launch 19-times-weekly, Milwaukee (MKE) - St Louis flights on March 1 aboard an EMB-135. It will operate daily (MKE) - Fort Lauderdale and six-times-weekly/daily, Kansas City - Fort Myers flights December 17 - April 19 aboard EMB-170s.
October 2009: Frontier Airlines Holdings, parent of Frontier Airlines (FRO) and Lynx Aviation, officially emerged from Chapter 11 bankruptcy protection and was acquired by Republic Airways Holdings as planned. (FRO) and Lynx will continue to operate under their names with, at least initially, no change in flight schedules, amenities offered or frequent-flyer programs. "This is the end of a long, difficult journey and the beginning of a new, exciting one," (FRO) President & CEO, Sean Menke, who will retain his position, said in a statement. "We are also looking forward to building on our relationships and working with both Republic and Midwest Airlines (MWX) [acquired by Republic on July 31] to build a strong, sustainable, competitive airline."
Republic acquired (FRO) via a court-monitored auction process for $108.75 million. In addition to (FRO), it owns Midwest (MWX), Chautauqua Airlines, Mokulele Airlines, Republic Airlines and Shuttle America. "(FRO)'s successful exit from Chapter 11 closes a difficult chapter in its history and allows us to move forward together to capitalize on the many opportunities to make two excellent brands even stronger," Republic Chairman, President & CEO, Bryan Bedford said.
Including (FRO), Republic now offers scheduled passenger service on approximately 1,800 daily flights to 126 cities. It has more than >11,000 employees and operates 294 airplanes.
Midwest Airlines (MWX) pilots (FC) and flight attendants (CA) likely will find themselves out of work when (MWX), acquired over the summer by Republic Airways Holdings, begins to return its nine remaining 717s to Boeing (TBC) next month.
The 717 fleet is being replaced by EMB-190s as part of an overall restructuring plan. (MWX) pilots (FC), represented by the Air Line Pilots Association (ALPA), and Republic pilots (FC), represented by the International Brotherhood of Teamsters, have not reached agreement on a plan to merge their respective seniority lists.
"Represented pilots (FC) and flight attendants (CA) on the [Midwest (MWX)] certificate cannot come over to another certificate until they work out the seniority question, so until that happens, they cannot be retained as pilots (FC) or flight attendants (CA)," a Republic spokesperson said. "We hope they will reach a fair and reasonable solution soon."
In August, about 150 (MWX) employees based at Milwaukee International received WARN (Worker Adjustment and Retraining Notification Act) letters required by law when job changes are scheduled to occur. The "Milwaukee Business Journal" reported that 68 pilots (FC) and 52 flight attendants (CA) will be furloughed in November. "All of our (MWX) flight crews (FC) are being outsourced in the final phase of dismantling our airline," Anthony Freitas, head of the (MWX) (ALPA) unit, told the newspaper.
According to industry sources, all pilots (FC) will be furloughed by November 3.
"We hope they join the operation in the near future," the Republic spokesperson said. "However, that cannot happen until the unions involved get together and work out a way to reach a master seniority list. This is true of both the pilots (FC) and flight attendants (CA)."
(ASIG) renewed its agreement with (MWX) to provide airplane deicing services at Milwaukee General Mitchell International. It has provided (MWX) with the service since 2001.
Datalex reached agreement with (MWX) to provide its Travel Distribution Platform, which will allow customers to shop and reserve both Frontier Airlines (FRO) and (MWX) flights in support of code share agreements.
(FRO)'s new owner, Republic Airways Holdings plans to place five A319s in Milwaukee by November to optimize (FRO)'s network with (MWX), which Republic also recently acquired, Republic CEO, Bryan Bedford says.
After emerging from Chapter 11 bankruptcy protection this month as a Republic subsidiary, (FRO) will operate some of its narrow bodies on longer-haul, high-density, low-yield markets from Milwaukee. Bedford predicts profitability for (MWX) during the second quarter of 2010, and explains at that time Republic will make a decision about placing more (FRO) airplanes in Milwaukee. (FRO)'s airplanes will be joined next month by a total of eight Embraer EMB-190s operated in Milwaukee by fellow Republic subsidiary Republic Airlines on shorter-haul routes such as Omaha, Nebraska, and Boise, Idaho.
November 2009: Republic Airways Holdings felt the pinch of rapid expansion in the third quarter, reporting net income of +$3.3 million, a -80.8% drop from +$17 million earned in the year-ago period. Republic owns Republic Airways, Shuttle America, Chautauqua Airlines, Midwest Airlines (MWX), Frontier Airlines (FRO) and Lynx Aviation. (MWX), (FRO) and Lynx were acquired during the third quarter. Revenue fell -6.7% to $359.6 million, while expenses were down -0.6% to $323 million. The operating loss of -$32 million was about level with the -$32.5 million deficit suffered last year.
Chairman, President & CEO, Bryan Bedford said in September that he expected to see a drop in earnings over the next few quarters because of the acquisitions. "You will see our earning diminished as we go through all the integration issues. Our belief is that the integration will be completed by March 2010," he said.
During the third quarter, flying was reduced when 22 airplanes that had been flying for Continental Airlines (CAL) under a fixed-fee agreement were removed from Republic's operation. Of those, 17 were returned to the lessor, three were subleased offshore and two are expected to be subleased in the 2010 first quarter.
Republic's nine-month surplus of $19.5 million represented a -70.2% drop from $65.5 million in the year-ago period.
Midwest Airlines (MWX) will launch daily, Milwaukee (MKE) - San Francisco service from April 19 aboard an A319 and twice-daily, (MKE) - Raleigh Durham flights April 1 aboard an EMB-170.
Republic Airway Holdings, wooed by some $27 million in tax credits offered by the state of Wisconsin, will pack up and move its heavy maintenance and some administrative jobs from Denver (DEN) to Milwaukee. The job transfers will include 220 from Frontier Airlines (FRO)'s (DEN) maintenance base and 120 positions from its Las Cruces, New Mexico call center. About 250 to 300 Republic flight crew (FC) members also will be based in Milwaukee. "We don't have an exact number or breakdown of what those new positions might be. This process will take into next year to complete," the spokesperson said.
Republic said the move from Denver will preserve more than 700 jobs in Milwaukee and eventually will add up to as many as 800. It also will help further operation consolidation following Republic's acquisition of Frontier (FRO) and Midwest Airlines (MWX). "Our expansion in Milwaukee sends an important message to our current and future frequent flyers and to the local and state communities about our dedication to remain Milwaukee (MKE)'s hometown airline," Republic President & CEO, Bryan Bedford said. (MWX) will expand its schedule out of (MKE) with flights to Raleigh-Durham starting April 1 and to San Francisco on April 19.
When Republic's acquisition of (FRO) was finalized in October, Bedford said, "(FRO) has no place to go and we're not leaving (DEN). There is nothing that would cause (FRO) to capitulate." At the same time, he acknowledged that he was seeking concessions from (DEN), through either rent adjustments or tax breaks, to offset what he considered the high price of doing business in Colorado.
The "Denver Business Journal" reported last month that the city and state offered a package of tax credits and financial incentives to Republic but that they would apply only if it increased the base of 4,000 (FRO) workers. At that time, government officials expressed concern that 900 maintenance (MT), customer relations and headquarters positions could be relocated.
December 2009: Republic Airways Holdings promoted Director Flight Operations, Don Osmundson to VP Flight Operations; and Director Human Resources (HR), Kathy Woolridge to VP Human Resources (HR); and named Frontier Airlines (FRO) VP Planning & Strategy, Daniel Shurz as VP Planning & Strategy; and Midwest Airlines (MWX) VP Planning & Revenue Management, Greg Aretakis as VP Revenue Production for Republic's branded airline operations.
Republic Airways Holdings CFO, Hal Cooper said the CSeries represents "a pretty interesting opportunity" as the company considers fleet renewal at its Frontier Airlines (FRO) subsidiary. Republic also in talking with Airbus (EDS) and Boeing (TBC), he said at an investor conference, according to "Reuters," but "unlike (EDS) and unlike (TBS), we believe we can tap into some very attractive export financing through the [Export Development Canada] there," he said. (FRO) currently operates 38 A319s, nine A318s and four A320s.
Republic said it will hire +300 full-time business operations employees in Indianapolis in the first half of next year, which will allow it to claim some $4 million in government incentives tied to job creation. The consolidation will affect around 140 jobs in Denver. Also, (FRO) and fellow Republic subsidiary Midwest airlines (MWX) expanded their code share relationship to cover all destinations except Kansas City, which will be added in the coming months, the (FRO)/(MWX) said, along with stopover flights and (FRO)'s international routes.
(MWX) will operate seasonal flights from Omaha to Orlando International (four/five-times-weekly) and Tampa (twice-weekly), Januarey 15 to April 18 aboard EMB-190s.
January 2010: Republic Airways Holdings airlines flew 1.66 billion (RPM)s traffic in December, a +112.4% increase from the year-ago month, owing to the inclusion of Frontier Airlines (FRO) and Midwest Airlines (MWX). Capacity climbed +99.5% to 2.21 billion (ASM)s and load factor rose +4.6 points to 75.3% LF.
(FRO) and (MWX), subsidiaries of Republic Air Holdings, announced an expansion of their code share deal, effective February 16. (FRO) will code share on Midwest (MWX) flights from Kansas City (MCI) to eight destinations while Midwest (MWX) will place its code on (FRO)'s (MCI) - Denver service.
Republic Airways Holdings named Frontier Airlines (FRO) Director Supply Chain, Drew Skaff as Republic Airways VP Supply Chain.
Republic Airways Holdings said that all of its executive management functions, including those of subsidiaries Frontier Airlines (FRO) and Midwest Airlines (MWX), will be consolidated at its Indianapolis headquarters and former (FRO) CEO, Sean Menke will leave the company at the end of the current quarter.
Menke already had relinquished his (FRO) CEO role and become Republic Executive VP & Chief Marketing Officer (CMO). Now he has made the "personal decision" to leave altogether, Republic said.
When Republic acquired Denver-based (FRO) and Milwaukee-based (MWX) last year, it said the two would continue to be operated as independent brands. But while both have retained their branding, the carriers increasingly are becoming operationally integrated. Republic, for example, moved (FRO)'s heavy maintenance from Denver to Milwaukee.
Republic said it will commence "the next phase of the integration," which will include both airlines moving to a common reservations system and an integrated frequent-flyer program. It said the three A320s and seven EMB-190s it is acquiring in the first half of this year could be operated by both carriers.
February 2010: Republic Airways Holdings airlines flew 1.52 billion January (RPM)s traffic, up +119% year-over-year, against a +102% climb in capacity to 2.22 billion (ASM)s. Load factor rose +5 points to 68% LF.
Republic Airways Holdings will dissolve its Lynx Aviation subsidiary by September, removing the former Frontier Airlines (FRO) subsidiary's DHC-8-Q400s from operation and eliminating approximately -175 jobs. "After extensive analysis and months of efforts to grow the business, we concluded we could not efficiently operate a fleet of 11 DHC-8-Q400 airplanes," Republic Executive VP & COO, Wayne Heller said. "Converting . . . to jet service allows us to better utilize our existing airplane resources and lower our cost of operating and maintaining multiple fleet types."
Republic acquired Lynx when it purchased (FRO) last fall. It will remove three DHC-8-Q400s from service on April 6, another three on April 19 and said it will terminate leases on seven CRJ-200s operated by Chautauqua Airlines, shifting all flying to Republic Airlines EMB-170 and EMB-190 airplanes. It did not account for the remaining five turboprops. Two cities will lose service entirely, Fargo and Tulsa, which will see flying cease on April 5.
Republic said "most" of the 175 employees, whose jobs are eliminated, will have the opportunity to continue in a similar capacity at either Republic Airlines or (FRO).
(FRO) announced an expansion at Denver that will include seven new routes beginning in the summer schedule. Service will start to Branson (four-times-weekly on April 20 aboard an EMB-190), Fort Myers (thrice-weekly on April 20 aboard an EMB-190, switching to an A318 on June 4), Grand Rapids (daily on May 14 aboard an EMB-190), Green Bay (thrice-weekly April 19 to October 22 aboard an EMB-190), Long Beach (13-times-weekly on May 14 aboard an EMB-190), Madison (daily on May 3 aboard an EMB-190), Newport News (four-times-weekly on May 3 aboard an EMB-190, switching to an A318 on June 4) and Santa Barbara (13-times-weekly on June 4 aboard an EMB-190).
A third daily flight to New York LaGuardia will launch April 19 and fifth daily frequencies to Portland (Oregon), San Francisco and Seattle begin May 14. (FRO) expects to take delivery of three A320s and "additional EMB-190s" this spring, VP Planning & Strategy, Daniel Shurz said.
Republic Airways Holdings, fresh off reporting another profitable year with net income of +$39.7 million, Placed a firm order for 40 CSeries airplanes valued at $3.06 billion.
Bombardier touted the deal, which includes 40 options, as a "major" breakthrough, noting that Republic will be the North American launch customer for its narrow body offering set to enter service in 2013. Republic, parent of Frontier Airlines (FRO), Midwest Airlines (MWX), Republic Airlines, Chautauqua Airlines and Shuttle America, becomes just the second airline operator to order the CSeries and only the third customer overall; its order is the single largest firm commitment.
It will take the larger CS300 variant, with the first arriving in the second quarter of 2015, and will configure the airplane for 138 passengers in a single cabin. "We spent a lot of time looking at this technology," Republic Chairman & CEO, Bryan Bedford told analysts and reporters. "This isn't a paper airplane . . . If it does the things they say it can do, and we have no reason to believe it won't, we're going to have some great [operating] flexibility." He added that it will "help us dramatically reduce our fuel consumption and impact on the environment."
The airplane will be powered by Pratt & Whitney (P&W)'s (PW1000G) geared turbofan, for which Republic placed a firm order for 86 (including six spares) along with an exclusive 15-year aftermarket support contract. (P&W) did not place a value on the order or maintenance agreement. "Having a major operator like Republic Airways select our technology expands the reach and scope of the PurePower engine program," President Commercial Engines & Global Services, Todd Kallman said.
The launch customer for the CSeries is Lufthansa (DLH), which has placed a firm order for 30. Irish operating lessor, Lease Corporation International has booked a firm order for 20.
Republic's 2009 profit, its 33rd in 35 years of operating, was down -53.1% from $84.6 million earned in 2008. Revenue fell -19.3% to $1.64 billion, while expenses rose +11.9% to $1.37 billion, producing operating income of +$271.4 million, up +6.4% from operating income of +$255.1 million in 2008.
March 2010: Republic Airways Holdings has changed course and will abandon either the Frontier Airlines (FRO) or Midwest Airlines (MWX) name next month and combine its new subsidiaries into one company, new VP Marketing & Branding, Ian Arthur told "American City Business Journals." "I think the name is very important. And certainly part of our decision is which customer base is more willing to migrate over to the other brand," Arthur said. "There's significant equity in both of them." Republic said it intended to keep both brands when it acquired the pair last year.
April 2010: Republic Airways Holdings unveiled its decision to unite Midwest Airlines (MWX) and Frontier Airlines (FRO) under the "Frontier" brand, a process it said should be completed by October 2011.
Republic CEO, Bryan Bedford said the decision was "an emotional one for everyone involved" that followed months of "exhaustive research." Both brands had strong loyalty but Frontier (FRO) had a stronger identity and brand preference, he explained.
"Midwest (MWX) isn't going away, Midwest (MWX) isn't being retired," Bedford said during a news conference webcast from Milwaukee. "(MWX) is going to be fused, merged into the new brand promise that you see here. We're doing what we told people we would do here and we're doing everything we can to continue to support the community." When Republic acquired Frontier (FRO) and Midwest (MWX) last year, it said the two would continue to be operated as independent brands.
Republic said plans for the "bigger and stronger" airline include launching 10 new destinations out of Denver (DEN) and five out of Milwaukee (MKE) and growing capacity (ASM)s by +7% this year, much more capacity growth than is expected by other USA carriers. During the next 12 to 18 months, the company will "work to integrate the customer experience and cultivate the attributes that will set Frontier Airlines (FRO) apart in the industry," it said. (FRO)/(MWX) will move to a single website and single frequent-flyer program and will implement new product attributes.
Bedford assured customers that Midwest Airlines (MWX)'s "iconic" cookies will continue to be offered on flights and the trademark Frontier (FRO) tail-fin animals/birds also will remain. Republic purchased (MWX) in July 2009 and (FRO) in October 2009.
Midwest Airlines (MWX) will launch 13-times-weekly, Milwaukee - St Louis service April 1 aboard EMB-135s.
Frontier Airlines (FRO) will operate seasonal Denver service to Green Bay (daily aboard an EMB-190), Louisville (daily), San Francisco (daily) April 19 to October 22 and to Branson (four-times-weekly aboard an Emb-190) April 20 to October 22. It also will operate seasonal daily, Milwaukee - San Diego flights April 19 to November 17. It said the new routes are part of a 17-market expansion taking place this spring and summer following its integration with Midwest Airlines (MWX).
Republic Airways Holdings promoted Frontier Airlines (FRO) Senior Director Customer Service, Jan Fogelberg to VP Customer Experience & Technology, and Republic Airways, Director Information Technology (IT) Aaron Workman to VP Information Technology (IT).
June 2010: Republic Airways Holdings airlines flew 1.83 billion (RPM)s traffic in May, up +116% from May 2009. Capacity jumped +100% to 2.24 billion (ASM)s and load factor rose +6 points to 82% LF.
August 2010: Republic Airways Holdings flew 2.06 billion (RPM)s traffic in July, up +127% from July 2009. Capacity jumped +108% to 2.38 billion (ASM)s and load factor rose +7 points to 86% LF.
Republic Airways Holdings reported a huge boost in second-quarter revenues thanks to its airline acquisitions, but it also saw its profit sink significantly compared to the prior year.
The company’s net income was +$2.6 million in the second quarter, compared to +$14.1 million in the same period 2009. The decline was largely due to almost $20 million in special charges relating to the integration of Midwest (MWX) and Frontier (FRO) businesses, lease return costs, and fuel hedging losses. Operating revenues more than doubled to $683.3 million, thanks to the additional businesses.
Republic’s branded operations—including Frontier (FRO), Lynx
and Midwest (MWX) made a before-tax loss of -$14.2 million, although
this would have been a profit of +$2.9 million excluding special items.
The company’s fixed-fee flying, meanwhile, saw a before-tax profit of +$18.2 million. Revenue in this sector was $260.2 million, down -$50.1 million from the prior year. Revenue fell -15% excluding fuel reimbursement from partner airlines, due to a -16% reduction in block hours. The company has removed -33 airplanes from fixed-fee service
since June 30, 2009.
September 2010: Frontier Airlines (FRO), a Republic Airways Holdings (RAH) subsidiary that includes Midwest Airlines (MWX), flew 1.21 billion (RPM)s traffic in August, up +10%. Capacity increased +9% to 1.38 billion (ASM)s and load factor was 88% LF, up +1 point.
September 2012: Milwaukee is about to lose the last vestige of its former Midwest Airlines (MWX) hub.
Republic Airways has applied to the USA Department of Transportation to shift its Milwaukee to Washington National slots to Madison and Omaha. With the shift, Republic Airway's Frontier Airlines (FRO) subsidiary will only fly to Cancun, Denver, Orlando and Rhinelander (not sure how long that will last) from the former Midwest (MWX) stronghold.
Long gone are (MWX)'s former routes from Milwaukee to major business markets around the country, including Boston, Los Angeles, New York, and San Francisco. Many of these routes are now served by AirTran Airways (CQT) and its parent, Southwest Airlines (SWA), and Delta Air Lines (DAL).
What a difference five years make.
AirTran Airways (CQT) began building up a hub at Milwaukee following its failed takeover of Midwest (MWX) in 2007. Now, combined with (SWA) who bought (CQT) in 2011, it is the largest carrier at the airport with 3.7 million enplaning passengers, or a 43% market share, during the year ending in 30 June, according to (DOT) data.
Frontier (FRO) had a 9% market share with just 797,000 enplaning passengers during the period, according to the (DOT). It began cutting flights and staff at Milwaukee in 2011.
A hub is not coming back. Despite AirTran (CQT) and (SWA)'s significant operation at Milwaukee, the carrier's have already begun shifting routes to smaller Midwestern cities, including Akron-Canton and Des Moines, to its large "hub" (though it does not refer to it as one) at Chicago's Midway airport, which is only about 140 km to the south. The moves suggest that Milwaukee will simply be a large originating and departing market at the combined carrier.
Michael Boyd, Chairman of the Boyd Group International, said that Milwaukee has lost its status as a connecting point in the USA and that he anticipates declining passenger enplanement numbers at the airport during the next five years.
Milwaukee's loss of its hubs is emblematic of the trends among USA airlines during the past decade. It joins a growing list of former rust belt and Midwest hubs, including Pittsburgh, St Louis and increasingly Cincinnati, that have devolved to simply points in the web of hub and spokes around the USA.
NOTE: ALL FUTURE DATA ON (MWX) CAN BE FOUND UNDER (FRO) FRONTIER AIRLINES - - GO TO (FRO).
Click below for photos:
0 717-200 (BR715) (5116-55166, /03 N902ME; 5117-55167, /03 N903ME; 55169, /03 N905ME; 5121-55171, /03 N907ME; 5122-55172, /03 N908ME; 5124-55174, /03 N910ME; 55177, N914ME, 2004-01; 5128-55178, N916ME, 2004-02; 5129-55179, N917ME, 2004-03; 5132-55180, N918ME, 2004-06; 5138-55182, N920ME 2005-01; 55183, 2005-03; 55184, N922ME, 2005-04; 55185, N923ME, 2005-07; 55190, N924ME, 2005-10; 5151-55191, N925ME, 2005-12; 5152-55192, N926ME, 2006-02; 5153-55193, N927ME, 2006-03; 5154-55194, N928ME, 2006-05). 16 TO BE RETURNED TO BOEING (TBC) IN THE FALL, 2008. 25 717'S RTND & LST (AEB) STARTING 2009-03. ALL TO BE PHASED OUT & REPLACED BY EMB-190'S. 55166; 55174; 55176; 55191; RTND 2009-09. 55168; 55173; 55182; & 55185; RTND 2009-11. 88C.
0 DC-9-14 (JT8D-7B HK) (2-45696, /66 N700ME; 12-45711, /66; 19-45725, /66; 23-45842 /66; 43-45727, /6680; 65-45795, /66; 47309, /68), EX-(DAL), (ACN), (CAL), (XWC), & (LAV). 45795 RETIRED 2002-12. "D" MAINTENANCE CHECKS AT TIMCO, NC. 2-45696 ST CENTEC AVN 2004-04. 60C.
0 DC-9-15 (JT8D-7 HK) (17-45718, /66; 46-45841, /66), EX-(ACN). 45841; 45842; ST (IDV) 2002-11. 45718 ST PEREGRINE AV 2003-09.
0 DC-9-32 (JT8D-9A HK) (198-47102, /67; 229-47132, /68; 230-47133, /68; 240-47190, /68; EX-(KLM); 715-47601, /74; 778-47672, /75; 779-47673, /75; 781-47680, /75; 822-47701, /76; 828-47730, /76; 835-47740, /76; 837-47744, /76; 908-47791, /79; 915-47794, /79; 956-48132, /80; 959-48133, /80; EX-(GIA). 47133 ST (IDV) 2003-12. 47740; 47791; 47794; WFU AT MOJAVE & RTND, LST (AEX). 47102 ST GLOBAL AVN LSG 2004-03. 47672; & 47190; ST WORLD AVIATION 2004-03. 47132 ST GLOBAL ACFT LSG; & 47730 ST PROTOURS; 2004-06. 47673 RTND 2004-09, LST (AEX). 47680; 47740; ST INTERGLOBAL, LST (AEX) 2004-10. 84F.
2 MD-81 (JT8D-217C) (988-48003, /81 N807ME; 966-48006, /00 N812ME; 971-48007, /01 N813ME), 48010 NTU, EX-(SAS). 48006; ST MAPLE LEAF 2008-04. ALL TO BE GROUNDED BY 2008-09. 147Y.
5 MD-81 (JT8D-217A/C) (953-48029, /80 N803ME; 962-48030, /81 N804ME; 969-48031, /81 N805ME; 978-48032, /81 N806ME; 988-48033, /81 N807ME; 999-48070, /81 N808ME; 41004-8071, /81 N809ME; 1011-48072, /81 N810ME), EX-(JAS). 48032; PARTED OUT TO (AUB) 2005-12. ALL TO BE GROUNDED BY 2008-09. 48029; 48031; RTND 2009-02. 147Y.
2 MD-88 (JT8D-219) (1620-49760, /89 N601ME; 1624-49762, /89 N701ME), ALL TO BE GROUNDED BY 2008-09. 147Y.
1 MD-88 (JT8D-219) (1606-49759, /89 N822FE, 2007-06; 1657-49766, /89 N12FQ, 2007-07), (GEF) LSD. ALL TO BE GROUNDED BY 2008-09. 49759 RTND 2009-02. 147Y.
15 BEECH 1900, OPS BY SKYWAY AIRLINES, 19 PAX.
10 +8 OPTIONS FAIRCHILD DORNIER 328JETS, OPS BY SKYWAY AIRLINES (3108, N351SK; 3111, N352SK; 3121, N353SK; 3126, N354SK; 3134, N355SK).
5 ORDERS (2003-01) FAIRCHILD DORNIER 428JETS.
00 ORDERS EMBRAER ERJ-145 (2002-02), OPS BY SKYWAY. 20/20 ORDERS CANCELLED 2006-04.
2 EMB-190 (0231, N162HL - - SEE ATTACHED ARTICLE & PHOTO - - "MWX-EMB-190-2009-08"). 99Y.
40/40 ORDERS (21015-04) BOMBARDIER CS300 (PW1000G), 138Y.
Click below for photos:
BRYAN BEDFORD, CHAIRMAN, & PRESIDENT REPUBLIC HOLDINGS (MWX) - - SEE ATTACHED PHOTO & ARTICLE - "MWX-FRO-CEO-2009-09-A/B/C/D/E/F."
SEAN MENKE, CHIEF EXECUTIVE OFFICER (CEO), REPUBLIC HOLDINGS, EX-(FRO)/(ACN) WILL RESIGN 2010-03.
HAL COOPER, CHIEF FINANCIAL OFFICER (CFO) REPUBLIC AIRWAYS HOLDINGS.
LEO MALLOY, PRESIDENT SKYWAY AIRPORT OPERATIONS (2008-06).
JAMES RANKIN, GENERAL MANAGER, (MWX) SAVER SERVICE (2003-05).
CURT SAWYER, SENIOR VP & CHIEF FINANCIAL OFFICER (CFO).
CAROL SKORNICKA, SENIOR VP CORPORATE DEVELOPMENT, SECRETARY & GENERAL COUNSEL.
SCOTT DICKSON, SENIOR VP & CHIEF MARKETING OFFICER (CMO).
DAVID REEVE, SENIOR VP FLIGHT OPERATIONS.
CHRISTOPHER STONE, SENIOR VP HUMAN RESOURCES (HR).
JAN FOGELBERG, VP CUSTOMER EXPERIENCE & TECHNOLOGY, REPUBLIC AIRWAYS HOLDINGS, EX-(FRO) (2010-04).
AARON WORKMAN, VP INFORMATION TECHNOLOGY (IT), REPUBLIC AIRWAYS HOLDINGS (2010-04).
IAN ARTHUR, VP MARKETING & BRANDING, REPUBLIC AIRWAYS HOLDING.
KATHY WOOLRIDGE, VP HUMAN RESOURCES (HR).
DREW SKAFF, VP SUPPLY CHAIN REPUBLIC AIRWAYS HOLDINGS, EX-(FRO), (2010-01).
DOM OSMUNDSON, VP FLIGHT OPERATIONS (2009-12)
THOMAS IRWIN, VP FLIGHT OPERATIONS (2002-08).
REX KESSLER, VP TECHNICAL SERVICES.
CHRIS WHITE, VP SAFETY & REGULATORY COMPLIANCE
CLIFFORD VAN LEUVEN, VP CUSTOMER SERVICE.
RANDALL SMITH, VP SALES & DISTRIBUTION.
DANIEL SHURZ, VP PLANNING & STRATEGY, EX-(FRO) (2009-12).
GREG ARETAKIS, VP PLANNING & REVENUE MANAGEMENT, EX-(FRO) (2005-04).
MICHAEL BROPHY, VP CORPORATE COMMUNICATIONS (2007-10).
ROBERT BAHLMAN, EXECUTIVE DIRECTOR, KANSAS CITY REGION (2004-09).
CAPTAIN P D WESTON, DIRECTOR FLIGHT OPERATIONS (email@example.com).
MIKE RABBITT, CHIEF PILOT.
MARK GOLDFISCHER, DIRECTOR FLIGHT STANDARDS AND TRAINING.
WAYNE JAMROZ, DIRECTOR AIRCRAFT MAINTENANCE.
MARK WHITTIER, DIRECTOR QUALITY CONTROL (QC).
MS LILIIAN DUKES, DIRECTOR AIRCRAFT TECHNICAL SUPPORT.
JOHN SCHLAPBACH, UNSCHEDULED MAINTENANCE MANAGER.
SCOTT GLUCK, MANAGER QUALITY ASSURANCE (QA).
JEFF HODOWONIC, CHIEF INSPECTOR - QUALITY CONTROL.
DAN KIRKPATRICK, PROCESS MANAGER ENGINEERING.
STEVE SPRAUGE, MANAGER ENGINEERING (2000-10).