Another Airline Bites The Dust

JEP

Malko In Charge
Staff member
Midway Airlines ordered to sell everything
Associated Press

Published October 30, 2003 MDW31

RALEIGH, N.C. -- A federal bankruptcy judge said today he would order the liquidation of the assets of Midway Airlines, a regional carrier for US Airways that had fought bankruptcy for two years.

``Sometimes despite the best efforts, reorganization efforts don't work out,'' Judge A. Thomas Small said.

Gerald Juetter Jr., an attorney representing Midway Airlines, said the carrier had been unable to reach an agreement with its 85 pilots and was converting its attempted bankruptcy reorganization into a liquidation plan.

``Midway surrenders,'' Juetter said.

Jack Butler, an attorney representing US Airways, said the company had loaned Midway $8.6 million since December to keep Midway flying as a commuter feeder airline for US Airways. But Midway is running out of money and has been unable to operate its entire flight schedule in the past month, Butler said.

Midway parked its eight aircraft Wednesday night, pending the bankruptcy hearing.

The airline, which flew 30 daily round trips, grounded its planes and customers were being rerouted onto other flights, US Airways spokesman David Castelveter said today.

``We will accommodate customers on other US Airways flights or those of other airlines,'' he said. ``There are other options for customers to get to their destinations.''
 

JEP

Malko In Charge
Staff member
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Didn't Midway shut down a while ago? This would be the liquidation of their assets, then?

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[ QUOTE ]
Jack Butler, an attorney representing US Airways, said the company had loaned Midway $8.6 million since December to keep Midway flying as a commuter feeder airline for US Airways. But Midway is running out of money and has been unable to operate its entire flight schedule in the past month, Butler said.

Midway parked its eight aircraft Wednesday night, pending the bankruptcy hearing.

The airline, which flew 30 daily round trips, grounded its planes and customers were being rerouted onto other flights, US Airways spokesman David Castelveter said today.


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JEP

Malko In Charge
Staff member
When did they start back up then? Or am I missing something in the article? Apparently they have been flying a reduced sched for U.S. Airways.
 

Jason

Well-Known Member
In Aug of 2001 Midway furloughed approximatley 50% of their pilots(myself included) and parked a bunch of airplanes due to their poor financial situation that resulted from Fergie's mismanagement, after 9/11 the airline [expletive deleted] down completley to reorganize. Shortly thereafter they started back up on a reduced schedule flying a handful of 737's then shut down again - this latest 'reorganization' arrempt started earlier this year flying a few CRJ's as a USAir Express carrier.

I truly do hate to see the airline go down and another 85 great guys and gals on the street but I do support and applaud the pilot group for making the decision not to sign the latest contract proposal.

I'm still fairly 'in the know' about the Midway situation and don't let anyone tell you that the pilot's refusal to sign a new contract had anything to do with the airline going Tango Uniform!! It was mismanagement and poor execution of a poor business plan that caused it. The pilot group has signed something like 4 concessionary aggrements in the past 2.5 years - that's a new contract every 6 months. They simply didn't have anything left to give. The wages there were already near or at the bottom of the 'regional' industry and the work rules were ludicrous. I'm not sure what Uncle Bob hoped to gain in this last proposal - even if the pilots had agreed to work for free I don't think that would have helped.

Jason
 

Jason

Well-Known Member
What's up with the "expletive deleted" in my last post - I didn't say anything bad? I'm not smart enough to use big words like those


Jason
 

JEP

Malko In Charge
Staff member
Notice how the I and the U are next to each other on the keyboard, Fat-Fingered the keyboard I bet....
 

Joshua949

New Member
Don't forget that AA had a little something to do with it & it was perfectly legal. AA competed with Midway on some routes & AA took over some of Midway's customers then AA actually tried to help Midway by offering them to become partners but Midway refused. Just their own tough luck I guess. I know this b/c my mom works with AA.
 

Jason

Well-Known Member
Ehhhhhh....American's increased presence in RDU certainly didn't help Midway but I'm not sure that it hurt all that much either. I know AA had plans to obliterate Midway but Midway's down hill slide began long before AA started really beefing up their presence. It may have shortened Midway's life by a few months but trust me they would have gone ot of business by themselves. Alot of American's routes out of RDU didn't compete with Midway's. The transatlantic 777 for example.

Midway's major problem was that they provided a premium service -argubly the best in the industry for "book 4 years in advance vacation" kind of fares. I don't think that management ever figured out that a plane full of people is great but if they're all paying $99 round trip that it ain't gonna work.

Jason
 

Mr_Creepy

Well-Known Member
Jason it's kind of sad isn't it? I certainly didn't want those pilots to accept a substandard contract (or one that wasn't defined at all!) but sheesh, now they are on the street.

Makes ya think Home Depot looks pretty good huh!
 

TheFlyingTurkey

Fetus Worshiper
When I was a senior in high school, back in 1990, my Dad worked for Midway @ MIA, and at age 60 (my Dad worked in maint.) we all had to endure another lay-off. That is probably why I didn't persue an aviation career right out of high school. I say another lay-off because my Dad was laid-off from Pan Am in 1978 (after 20 years of service), then again from Air Florida after the crash in the Patomic in the early 80's. So on one hand it was nice to see Midway struggling, but on the other I would have jumped at the chance to fly for them if so offered. After all the bad luck my Dad had in aviation you would think I was nuts to want to do the same thing. Well, I resisted the urge for my entire adult life but finally gave in! Now I have a stuggle of my own. I am basically on furlough as I was hired by PAIFA then put on a waiting list for students. I guess I better get used to it... like father like son.

The Turk.
 

Jason

Well-Known Member
Nah John - Home Depot isn't worth it. Now, they are opening a Lowe's here.....hhhhmmmmm.....free peanuts and Coke or discounts on power tools and a better salary....where do I get an application??


Jason
 

Adam4884

New Member
I read about this in the paper tonight at work, and was very suprised, but sad more than anything.
See, a couple of weeks ago I was talking to my Geography instructor and was telling him about my plans to be an Airline pilot and he said "You know what, I know a pilot for Midway Airlines, he would be a good guy to talk with, he's a very nice guy, and really laid back", so I called the guy a few days later and talked with him, and we talked and he said he had some information that I could use, and would like to talk with me some more.
To make a long story short, we decided we would get together sometime after he got back from going out of town for a week. And now that I read about this, not sure what to say to him next time we talk.

Anyway...not sure what else to say.
 
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