Head of Midwest Airlines' Parent Company Rips Milwaukee

[airport757]

What an idiot! I am glad that you have to be so smart to be the CEO of Republic. I'd be pretty worried if you have to work for that guy.

 

[Bringupthebird]

First off Milwaukee is a pretty cool town, especially in the Summer. Some of the coolest chicks I've ever partied with are from up there.

Yeah, Laverne and Shirley. They're not cool, they're HOT!

 

[DH106]

Apparently, Laverne and Shirley are pilots for Republic. Here's a picture of them flying into MKE!

http://www.ultimatedisney.com/dvdizzy/images/l-o/las3-02.jpg

 

[runwayjockey]

Beer is good...but come on, being known as the "drunkest" city in America has to say something.

And, i'm going to have to agree with BB on the fact that cookies DO make people fly...at least those people in MKE. I swear every Midwest ticket that gets on our F9 birds asks about those darn cookies. I have witnessed people getting downright pissy with our FA's when they don't think they will get a cookie because all they see is Frontier on the bird and not Midwest. I was surprised myself, but they are very demanding of those "extraordinarily delicious" cookies. Yes, lots of sarcasm was meant in that previous statement.

Also, i believe the comment was taken out of context. Who was he talking to when he said this? Why did he use the words he used? Can you tell me or do you only ever believe what is said in the excellent reporting world? Just asking because i know the answers to those questions, and i believe they were not meant the way they were reported. Sure different words could have and probably should have been used, but really, no matter which way it was said, it could have been turned against him. Oh well, it's just MKE, who likes it there anyway?!

Why don't you just admit that you have a CEO that could rival Joe Biden when it comes to speaking whats on your mind?

Slam MKE all you want but you guys are riding on the fact that you can regain market share there and prosper. BB knows that MKE is up for grabs and there is no clear market leader. He has to be getting nervous knowing that the Brand recognition Midwest once carried in MKE has been eroding for years and it is not getting better. Cookies and a Midwest sticker slapped on a RJ do not make for the same customer experience Midwest customers expect. With out any way to discern your product from SWA or AAI other than price your Brand will continue to suffer.

Listen to what Gary Kelly has to say about MKE and you might learn what you guys are up against and what MKE has to offer. http://www.wisn.com/video/21490129/index.html

 

[starchkr]

Why don't you just admit that you have a CEO that could rival Joe Biden when it comes to speaking whats on your mind?

Slam MKE all you want but you guys are riding on the fact that you can regain market share there and prosper. BB knows that MKE is up for grabs and there is no clear market leader. He has to be getting nervous knowing that the Brand recognition Midwest once carried in MKE has been eroding for years. Cookies and a Midwest sticker slapped on a RJ do not make for the same customer experience Midwest customers expect. With out any way to discern your product from SWA or AAI other than price your Brand will continue to suffer.

Listen to what Gary Kelly has to say about MKE and you might learn what you guys are up against. http://www.wisn.com/video/21490129/index.html

Oh i have nothing to say about him speaking his mind...I too am dumbfounded by some of the things that come out of his mouth. His memos make me laugh histerically, although i am sure he is being pretty serious, at least in his mind.

I do think that the Midwest brand is going away in MKE, but truly, do you think that if the flying public had a choice they would choose SWA over AirTran or Frontier?

I don't care about Gary Kelly and his thoughts on MKE...i'll still take a listen in a few days though...because i am sure he will say most of the same things he said when he decided to come into DEN and kill us...and we all see how well that plan went. Sure, go ahead bring up the BK and SWA, but the two had nothing to do with each other so i'm not going to listen to that crap anymore.

I do believe that we have a weak leader, at least from what i have seen so far, but i am very happy that we retained Sean Menke as our head over the branded operations(Midwest and F9). I believe he can at least see things how they truly are and lead us well. Time will tell...

 

[starchkr]

Bedford is just upset about MKE ticket prices because he realizes Airtran/SWA can make money at these prices while Midwest can't because they don't have the right size airplane to compete with the 2 stronger LCCs. Wonder if he is having second thoughts about the purchase already?

I don't think SWA can make money at those ticket prices...if you do your off your rocker! No-one can make money at those prices, it has been said by the airlines themselves that they cannot. Companies like SWA and AAI spread out those losses over their entire system which allows them to make money system wide, but not city wide. For instance, SWA in DEN. They are losing their a$$e$ in DEN and they know it, but they have the ability to spread those losses out to show profits...well i guess in their case right now it is a loss, but in the past it was profits. Its all slight of hand in this business and right now MKE is up for a showdown with one airline large enough to move losses around, one that is big enough to do the same thing for the most part and a smaller airline who cannot move those losses around yet still makes money. It's going to be an interesting year ahead.

 

[jravi8tor]

If any of you are looking for any last minute gift ideas for me or any MIDWEST crew member for that matter, here's one, I want Bryan Bedford, our boss, brought from his happy holiday slumber in Indy to Milwaukee with a big ribbon on his head; and I want to look him straight in the eye and tell him, well Clark does it so much better.....

http://www.youtube.com/watch?v=3vuVW78tCTM

allelujah, holly SH!T!

ps. Thanks for terminating our travel benefits!!!

 

[runwayjockey]

I don't think SWA can make money at those ticket prices...if you do your off your rocker! No-one can make money at those prices, it has been said by the airlines themselves that they cannot. Companies like SWA and AAI spread out those losses over their entire system which allows them to make money system wide, but not city wide. For instance, SWA in DEN. They are losing their a$$e$ in DEN and they know it, but they have the ability to spread those losses out to show profits...well i guess in their case right now it is a loss, but in the past it was profits. Its all slight of hand in this business and right now MKE is up for a showdown with one airline large enough to move losses around, one that is big enough to do the same thing for the most part and a smaller airline who cannot move those losses around yet still makes money. It's going to be an interesting year ahead.

So let me get this straight, SWA is on track to fail in MKE and DEN because they maximize their profits through economies of scale? No offense, but I don't buy your argument that SWA is "losing their asses" in DEN. The only so called expert who seems to proclaim this is Boyd and we all know how much he loves SWA. It's kind of like arguing that Wallmart must be losing their a$$es in Den because the local chain stores can't sell their goods for that cheap.

BB was banking on retaining and growing Midwest market share through Midwest branding. If he wasn't then why buy the operation and keep the name around? Frontier has a great product, but it doesn't carry the same name recognition that Midwest does in MKE. BB's hopes of leapfroging on the Midwest name to gain market share may in fact back fire with the ensuing PR night mare you guys have on your hands. The locals know you have outsourced the pilots and FA's, moved headquarters out of state, eliminated all 2x2 seating and now your CEO says MKE sucks!

I agree, customers are going to vote with their wallets. However, I am not convinced that BB has pockets deep enough to outlast the pricing power of Southwest airlines and I think BB is starting to realize this.

Best of luck to all!

 

[maxblast72]

I don't think SWA can make money at those ticket prices...if you do your off your rocker! No-one can make money at those prices, it has been said by the airlines themselves that they cannot. Companies like SWA and AAI spread out those losses over their entire system which allows them to make money system wide, but not city wide. For instance, SWA in DEN. They are losing their a$$e$ in DEN and they know it, but they have the ability to spread those losses out to show profits...well i guess in their case right now it is a loss, but in the past it was profits. Its all slight of hand in this business and right now MKE is up for a showdown with one airline large enough to move losses around, one that is big enough to do the same thing for the most part and a smaller airline who cannot move those losses around yet still makes money. It's going to be an interesting year ahead.

Airtran has four major markets right now: ATL, BWI, MKE, and nonstops to Florida from northern cities that byepass ATL. Our management has been telling Wall St. recently that MKE, BWI, and FL are more profitable than ATL. Airtran has the right sized airplane to produce profits with $85 tickets, $15 bag fees, and $2/gal Jet A as evidenced by Airtran's record 2009 net profit of around $130 million.

Bigger companies always load up on smaller ones. Delta loads up on Airtran, SWA loads up on Frontier, Airtran and SWA are loading up on Midwest. You either find a spot where you can compete or you find a way to change your plan before you run out of money. 2010 will be interseting in MKE for sure.

 

[Propsync]

The locals know you have outsourced the pilots and FA's, moved headquarters out of state, eliminated all 2x2 seating and now your CEO says MKE sucks!

Nobody knows or cares here in MKE. A couple of blurbs in local media and it was done. They just want a cheap ticket and that cookie. Plus, they still advertise the brainwashing mantra 'Best care in the air'. You can rip on his rip, but he is right. I was not offended. It made sense to me.

 

[runwayjockey]

Nobody knows or cares here in MKE. A couple of blurbs in local media and it was done. They just want a cheap ticket and that cookie. Plus, they still advertise the brainwashing mantra 'Best care in the air'. You can rip on his rip, but he is right. I was not offended. It made sense to me.

Your right there is little or no brand loyalty in MKE which is made evident by no clearly defined market leader. I'm not arguing that airline tickets are immune to price sensitivity. We all know the majority of fliers out their vote with their wallets. I'm just curious why you spend $31 million on a brand name that you refer to as nothing more than a brainwashing mantra and a cookie if all that matters is cheap tickets. I think BB wasted a great deal of money on Midwest and is coming to the realization that he clearly has no pricing power with a brand name that is languishing. You call it a rip other's including myself are arguing its a sign of weakness.

BTW, I think most competitors including myself, welcome BB's rips. We will take any help your CEO offers to help alienate customers for which we are all competing for.

 

[Propsync]

That's really all it was in the heyday. It was more about novelty than function. Everybody is thinking Midwest was some world-beater of an airline. It wasn't. 31 million to buy is cheaper than starting from scratch. How much did Skybus start with? He's lowered cost in a market that doesn't react much to price. That's what Midwest needed to do. It got very expensive to fly 118 seat 80's and 88 seat 717's. By the time Midwest figured out Tim was wrong, they were done. He won't make much money doing it this way, but he won't lose much, either.

BTW- Not an airline employee.

 

[maxblast72]

He's lowered cost in a market that doesn't react much to price.

I think you are totally wrong here. You will see alot more originating traffic at MKE now that Airtran/SWA have lowered the average fare at MKE. There is also alot of originating traffic now in the northern Chicago suburbs that is shifting from O'Hare to MKE. Can you really say that MKE has no blue collar workers that will respond to Airtran/SWA's lower fares?

 

[Propsync]

Time will tell. Midwest was slowly making inroads in the Chicago suburbs. I don't know if they (or anyone else) will stay focused on that area. If they respond to non-sunshine destinations, that will be more of a mark. Carrying a bunch of people to low yield markets won't be enough to claim victory.

 

[runwayjockey]

That's really all it was in the heyday. It was more about novelty than function. Everybody is thinking Midwest was some world-beater of an airline. It wasn't. 31 million to buy is cheaper than starting from scratch. How much did Skybus start with? He's lowered cost in a market that doesn't react much to price. That's what Midwest needed to do. It got very expensive to fly 118 seat 80's and 88 seat 717's. By the time Midwest figured out Tim was wrong, they were done. He won't make much money doing it this way, but he won't lose much, either.

BTW- Not an airline employee.

A novelty that accounted for over 50% of passengers enplanements at its peak in MKE. Now its at what 35%?

 

[runwayjockey]

Time will tell. Midwest was slowly making inroads in the Chicago suburbs. I don't know if they (or anyone else) will stay focused on that area. If they respond to non-sunshine destinations, that will be more of a mark. Carrying a bunch of people to low yield markets won't be enough to claim victory.

I'm going to shoot another hole in one of your theories that MKE and the northern suburbs of Chicago is a market that no one will stay focused on. Over 7.96 million people passed through MKE last year a trend that has been increasing over the last several decades. http://www.anna.aero/2009/07/24/midwest-becomes-republic/

The last several months have seen record amounts of travelers using MKE.

WALKER ANNOUNCES A RECORD OCTOBER FOR GENERAL MITCHELL INTERNATIONAL AIRPORT
Mitchell Moves Up to 28th in Number of Cities Served Nonstop​

MILWAUKEE (November 24, 2009) - Milwaukee County Executive Scott Walker announced today that October 2009 was the busiest on record for that month at General Mitchell International Airport. The October total of 705,989 passengers was an increase of 21.15 percent over last October's 582,722 passengers, and was the first time more than 700,000 passengers used the airport in the month of October.
Walker noted that there were 123,662 more airline seats into and out of Milwaukee this October compared to last, and 123,267 more passengers. "Wisconsin and northern Illinois passengers have enthusiastically welcomed the new low-fare flight options out of Mitchell, filling just about every seat the airlines added in October," he said.
Airport Director Barry Bateman said, "With 48 markets, Mitchell International has moved up to 28th among U.S. airports in number of markets served nonstop, according to new data published by the Brookings Institute." Mitchell's rank in a similar 2004 study was 34th. "This ranking means that more nonstop markets are served out of Milwaukee than out of other Midwestern cities, such as Nashville; Pittsburgh; Indianapolis and Columbus, and out of medium-sized cities elsewhere in the U.S., including Portland, OR; Austin; New Orleans; San Diego; Raleigh/Durham; Albuquerque; San Antonio and Hartford, CT," Bateman said. He noted that competition has heated up at the airport since Southwest Airlines launched service on November 1st and AirTran and Midwest have added flights.
The average airfare out of Milwaukee was lower than 75 other U.S. airports, according to recently released U.S. Department of Transportation statistics for 2nd Quarter 2009. Mitchell's average fare was about $44 less than O'Hare's and $28 less than the nation's average fare.

 

[lookin4better]

Hopefully Air Tran and Southwest will become more dominate in MKE and pummel Republic in all markets from that airport.

It will be great and highly deserved to see Republic fail in MKE, as they felt nothing when they dismantled the real Midwest Airlines.

Best of luck to SWA and Air Tran.

 

[starchkr]

So let me get this straight, SWA is on track to fail in MKE and DEN because they maximize their profits through economies of scale? No offense, but I don't buy your argument that SWA is "losing their asses" in DEN. The only so called expert who seems to proclaim this is Boyd and we all know how much he loves SWA. It's kind of like arguing that Wallmart must be losing their a$$es in Den because the local chain stores can't sell their goods for that cheap.

BB was banking on retaining and growing Midwest market share through Midwest branding. If he wasn't then why buy the operation and keep the name around? Frontier has a great product, but it doesn't carry the same name recognition that Midwest does in MKE. BB's hopes of leapfroging on the Midwest name to gain market share may in fact back fire with the ensuing PR night mare you guys have on your hands. The locals know you have outsourced the pilots and FA's, moved headquarters out of state, eliminated all 2x2 seating and now your CEO says MKE sucks!

I agree, customers are going to vote with their wallets. However, I am not convinced that BB has pockets deep enough to outlast the pricing power of Southwest airlines and I think BB is starting to realize this.

Best of luck to all!

Well when a company comes out and admits to losing a lot of money in a certain market then i think i can pretty easily say they are losing money...i could be wrong. As for Boyd...well, there's not really much to say about him now is there?

I'm going to have to also disagree with the usage of the word "outsourced." Midwest is owned by RAH, Republic is owned by RAH and F9 is owned by RAH...how exactly is that outsourcing if we fly under Midwest routes using other "owned" aircraft and crews. Sure i can say that Midwest...oh wait Rupeblic...has come into DEN and we have outsourced our flying to them, but in reality we have not, we have just used other company owned aircraft and crews to fly some of our routes while we send the airbus to MKE. Sure in our little miniscule pilot brains we see that as outsourcing, but it's not. Now if RAH didn't own F9 and brought a bunch of those little birds into DEN to fly for us then sure, it would be "outsourcing" as to which you referred. Also vice versa, if republic didn't own Midwest but Republic came in and flew all of their routes it would be outsourcing...again, it's not. Until you can remove it from the compnay it is "technically" not outsourcing in the way in which you referred. Would you consider NWA outsourced to DAL? How about CO to UAL...oh wait, that's another one of those crazy ruimors always floating around here. MESA to UAL...yes. Skywest to UAL...yes. Skywest to Airtran...yes(i think that's who is going to be flying for them in MKE). That's outsourcing.

 

[starchkr]

Hopefully Air Tran and Southwest will become more dominate in MKE and pummel Republic in all markets from that airport.

It will be great and highly deserved to see Republic fail in MKE, as they felt nothing when they dismantled the real Midwest Airlines.

Best of luck to SWA and Air Tran.

You wouldn't happen to be ex Midwest would you? If so, you do realize that all of us here at F9 are pulling for you right? You are not forgotten on our side of the house.

 

[runwayjockey]

Well when a company comes out and admits to losing a lot of money in a certain market then i think i can pretty easily say they are losing money...i could be wrong. As for Boyd...well, there's not really much to say about him now is there?

I.

Not trying to fan flames here, but where are you getting your info from? Could you state your sources? I would very much like to read what you are reading. I have not found anything anywhere with SWA stating they are losing their asses in DEN. In fact everything out of Gary's mouth seems to be the opposite. There is much speculation among outsiders that SWA can not be making money, but I have found no such statements specifically from SWA.

To quote Gary "There are those that will write about city performance based on public information and over-simplify the results, which can't be done. A network doesn't allow for simplicity in terms of evaluating performance."

Outsourced might have been a poor choice of words, maybe I should have said displaced.