Skyway Airlines to lay off up to 100 pilots
By TOM DAYKIN
[email protected]
Posted: May 4, 2005
Up to 100 Skyway Airlines pilots will be furloughed after Delta Air Lines Inc. announced it was hiring a rival carrier for its regional jet service.
Delta said Freedom Airlines, a subsidiary of Mesa Air Group Inc., will become a carrier for Delta Connection, Delta's regional service. Freedom will take over Delta Connection flights previously handled by Atlantic Coast Airlines.
Skyway Airlines Inc., the regional service operated by Oak Creek-based Midwest Air Group Inc., had hoped to pick up Delta Connection flights from Cincinnati, a move that would have more than doubled Skyway's operations.
Carol Skornicka, Midwest Air senior vice president, said Midwest executives had known for some time that the deal might fall through.
Skornicka said 80 to 100 pilots who had been hired in anticipation of the Delta contract will be placed on furlough. The pilots live throughout the country but fly out of Milwaukee.
Skornicka said Delta had agreed to cover Midwest's costs of training the employees.
But Delta went with Freedom Airlines, which will use 50-seat Bombardier regional jets, instead of the 32-seat Fairchild Dornier regional jets operated for Delta by Atlantic Coast Airlines. Skyway also uses Fairchild jets.
Delta said the agreement with Freedom Airlines provides long-term cost savings and efficiencies. Delta Connection President J.T. Fisher said in a statement that the Bombardier jets provide more flexibility and effectiveness than the smaller Fairchild jets.
The negotiations between Delta and Skyway were first reported a year ago.
Skyway reported passenger revenue of $75 million in 2004, compared with Midwest Airlines passenger revenue of $279.2 million.