717200

Midwest Loses $25.5 Million In Quarter | AVIATION WEEK

Midwest Loses $25.5 Million In Quarter


Jun 17, 2009

Andrew Compart

Milwaukee-based Midwest lost $25.4 million in the first quarter of this year, according to data released June 15 by the U.S. Transportation Dept.'s Bureau of Transportation Statistics.

The airline's Form 41 filings with DOT also show the privately held carrier with less than $1 million in cash and short-term investment at the end of March. Those numbers don't always match up with the amount of cash and short-term investments as reported by airlines in quarterly financial statements and SEC filings, but Midwest's numbers nonetheless show a carrier that was in trouble when it received $12 million in new debt financing this month from Republic Airways and majority owner TPG Capital (DAILY, June 10).

Midwest declined comment June 16 on its first-quarter results. While Midwest did get a cash infusion, replacing its SkyWest-provided regional services with Republic-provided services in connection with the new financing deal is going to cost it. As part of the mutual agreement between Midwest and SkyWest to terminate their air services agreement, SkyWest canceled a $9.3 million unsecured note from Midwest in exchange for a $4 million payment from Midwest, guaranteed by Republic Airways.
Midwest is scheduled to make the payment at the rate of $400,000 per SkyWest aircraft as each aircraft is removed from service between this month and January, SkyWest said. The schedule for the removal of those aircraft has been created in part "to accommodate Midwest's commercial challenges," SkyWest said June 10.

johnso29

And Republic buys the operating certificate in 3, 2, 1.............

unemployedagain

why bother? Having the certificate does nothing. No 717, md80's, what would the be point?

It was very sad for those folks who built up a great company, great service only to be left being outsourced, this is far worse than having your job hyjacked and sent overseas, it happened right in the front yard. Then on top of it a decision that this is with the scope and ok is beyond belief. I sure hope all line guys are paying attention, the contractors who came in and determined this have sharpened up their notebooks and need work.

MD80

Why not use the Midwest pilots? Because the Republic pilots will work for less and that will undercut the future of our profession.


Republic Teamsters will get my respect if they negotiate a contract equal to JetBlues for the E190 flying.

RatherBeFishing

Unfortunately, I believe Bedford wants this certificate so he can throw a bunch of 190s on it. I think this is exactly what he wanted from the very beginning of the Midwest codeshare. Why else would he put so much money into this airline? Why else would he want to give more money to have Midwest drop Skywest? Now it's just RAH and Midwest and Midwest isn't doing well. It looks to me like Bedford is all about this certificate with the amount of money he has put into it. I hope I'm completely wrong and RAH loses a bunch of money but I really think Bedord's plan is working exactly how he wanted. Does anyone else feel this could happen?

FORTL

Great. Then who will you blame for your troubles? SWAPA for not uping the bar, then APA, USAPA, ALPA. Where does it stop?

Isn't it bad enough all of the bargaining units are fighting their respective managements? Why go punking each other in backside.
What can you do to back the Republic guys if they go to the wall? Willing to set your parking brake?

"The insert wretched group's name here pilots are willing to work for less." It's getting old. They ought to be cussing those who sold out scope.

acl65pilot

I never understood why they killed this company. It made a few mil a quarter for 25 years. Survived 9-11 and was one of the last carriers that still truly had customer loyalty.
I guess some did not like that competition.

I tell my parents not to book more than a week in advance.

deadstick35

You betcha!

IMHO

I think you missed the point of the article. Midwest is broke, Midwest has been broke, Midwest couldnt make money with their airplanes and crew, Midwest cant make money with RAH's airplanes and crew, Midwest couldnt make money with Skywest's airplanes and crew. Midwest cant make money offering cookies, Midwest cant make money offering premium seating, Midwest cant make money offering all coach class seating. MIDWEST CANT MAKE MONEY!!!! You need to be lamenting that fact. For whatever reason, you think that somehow RAH had to do with the demise of this "great" airline. This airline was going down the tubes long before RAH came on the scene. Maybe it turns around eventually. Maybe it collapses. But if it collapses, to blame that on "outsourcing" is not even close to accurate. Whatever your opinion of RAH and the Midwest dealings, in NO WAY, did RAH cause the demise of Midwest.

MD80

$1 Million in the bank, $477 Million in losses last year... it is all a accounting game. TPG is taking every dime out of Midwest before they sell it.

Midwest is a Republic/Delta joint venture.