Smaller market share
Midwest remains Milwaukee's No. 1 carrier. But its market share, once around 50%, was at 35.5% in September. Some of that share was lost when Midwest's previous owner, TPG Capital, cut service from Mitchell International and other airports by around 40% in 2008 after fuel prices spiked and demand for air travel declined.
Midwest's $31 million sale to Indianapolis-based Republic on July 31 gives the airline more financial stability, said Jim Reichart, Midwest's director of advertising and brand. Midwest has recently restored service to Los Angeles, St. Louis and Louisville, Ky., and plans to add more flights next year.
Republic's ownership also brings a lower cost structure, Reichart said. That doesn't mean Midwest is matching every discount fare, but it does mean it can be more competitive with the likes of Southwest and AirTran.
That could change the marketing focus for Midwest, which for years charged higher fares - while advertising a higher level of service.
"You may see price becoming a more prominent element in advertising," Reichart said.
Some of Midwest's lower costs are coming through the use of Republic flight crews who have less seniority, and earn lower salaries, than the so-called legacy Midwest flight crews - pilots and flight attendants who worked for the company prior to its acquisition by TPG. The last remaining veteran Midwest pilots and flight attendants will be laid off this week, after the last Boeing 717 in the Midwest fleet is removed from service on Monday.
Those jets are being replaced mainly by Republic-staffed Embraer 190 jets and by Airbus 319 jets from Denver-based Frontier, which Republic bought on Oct. 1. Midwest also is using Embraer 170 jets and regional aircraft staffed by Republic crews.
"All the people who you used to see when you walk onto a Midwest Airlines flight aren't there anymore," said Tony Freitas, chairman of the Midwest unit of the Air Line Pilots Association.
The Midwest legacy crews' chances of working for Republic will depend on the outcome of negotiations to merge the seniority lists of union employees from Midwest, Republic and Frontier. Virtually no progress has occurred, and officials from Midwest's pilots union say Republic management should get involved to speed up the process.
Republic Chief Executive Officer Bryan Bedford hopes to see the seniority issues resolved as quickly as possible. But company executives cannot impose their vision of a fair integration, which needs to be resolved among the unions, said Republic spokesman Carlo Bertolini.
Passenger service
Most passengers probably don't care about the staffing issue, said aviation industry consultant Michael Boyd, who operates Boyd Group International Inc., based in Evergreen, Colo.
But, along with ticket prices, passengers do care about service, said Kevin Healy, AirTran senior vice president of marketing and planning. He said Midwest will have a tough time advertising itself as "The Best Care in the Air" as it replaces its veteran flight crews.
AirTran, with a 24.5% market share in September, is credited with helping drive down fares in Milwaukee. Healy also said AirTran offers better amenities, including large overhead bins, new wireless Internet service, and assigned seats.
Southwest boards passengers by zones, instead of assigning seats. The zone boarding hasn't been an issue, said Krone, who said Southwest offers roomier cabins than many of its competitors.
Meanwhile, Midwest will maintain a high level of customer service despite the changing flight crews, Reichart said.
Republic crews flew some of Midwest's planes under contract before Republic bought Midwest, and customer surveys showed no decline in the level of service during that period, he said.
Midwest remains Milwaukee's No. 1 carrier. But its market share, once around 50%, was at 35.5% in September. Some of that share was lost when Midwest's previous owner, TPG Capital, cut service from Mitchell International and other airports by around 40% in 2008 after fuel prices spiked and demand for air travel declined.
Midwest's $31 million sale to Indianapolis-based Republic on July 31 gives the airline more financial stability, said Jim Reichart, Midwest's director of advertising and brand. Midwest has recently restored service to Los Angeles, St. Louis and Louisville, Ky., and plans to add more flights next year.
Republic's ownership also brings a lower cost structure, Reichart said. That doesn't mean Midwest is matching every discount fare, but it does mean it can be more competitive with the likes of Southwest and AirTran.
That could change the marketing focus for Midwest, which for years charged higher fares - while advertising a higher level of service.
"You may see price becoming a more prominent element in advertising," Reichart said.
Some of Midwest's lower costs are coming through the use of Republic flight crews who have less seniority, and earn lower salaries, than the so-called legacy Midwest flight crews - pilots and flight attendants who worked for the company prior to its acquisition by TPG. The last remaining veteran Midwest pilots and flight attendants will be laid off this week, after the last Boeing 717 in the Midwest fleet is removed from service on Monday.
Those jets are being replaced mainly by Republic-staffed Embraer 190 jets and by Airbus 319 jets from Denver-based Frontier, which Republic bought on Oct. 1. Midwest also is using Embraer 170 jets and regional aircraft staffed by Republic crews.
"All the people who you used to see when you walk onto a Midwest Airlines flight aren't there anymore," said Tony Freitas, chairman of the Midwest unit of the Air Line Pilots Association.
The Midwest legacy crews' chances of working for Republic will depend on the outcome of negotiations to merge the seniority lists of union employees from Midwest, Republic and Frontier. Virtually no progress has occurred, and officials from Midwest's pilots union say Republic management should get involved to speed up the process.
Republic Chief Executive Officer Bryan Bedford hopes to see the seniority issues resolved as quickly as possible. But company executives cannot impose their vision of a fair integration, which needs to be resolved among the unions, said Republic spokesman Carlo Bertolini.
Passenger service
Most passengers probably don't care about the staffing issue, said aviation industry consultant Michael Boyd, who operates Boyd Group International Inc., based in Evergreen, Colo.
But, along with ticket prices, passengers do care about service, said Kevin Healy, AirTran senior vice president of marketing and planning. He said Midwest will have a tough time advertising itself as "The Best Care in the Air" as it replaces its veteran flight crews.
AirTran, with a 24.5% market share in September, is credited with helping drive down fares in Milwaukee. Healy also said AirTran offers better amenities, including large overhead bins, new wireless Internet service, and assigned seats.
Southwest boards passengers by zones, instead of assigning seats. The zone boarding hasn't been an issue, said Krone, who said Southwest offers roomier cabins than many of its competitors.
Meanwhile, Midwest will maintain a high level of customer service despite the changing flight crews, Reichart said.
Republic crews flew some of Midwest's planes under contract before Republic bought Midwest, and customer surveys showed no decline in the level of service during that period, he said.
