Here is Timmy's plan. Let's not pay our bills in our hometown forcing the city to charge the other airlines to cover part of Midwest's gate fees. Brilliant!!!
Now, if Timmy could just not pay the fuel bill and let other airlines pay his fuel bill Midwest might have a chance to return to profitability.
http://www.jsonline.com/story/index.aspx?id=786024
Midwest Airlines behind on gate fees to Mitchell Airport
By TOM DAYKIN
Milwaukee Journal Sentinel
August 21, 2008
Mitchell International Airport is feeling Midwest Airlines Inc.’s financial pain, with the carrier falling behind on paying gate fees to the airport.
Midwest is more than 30 days overdue on $1.05 million in gate fees owed to the airport, said Ryan McAdams, a spokesman for the airport, which is owned by Milwaukee County. Midwest pays around $700,000 in monthly gate fees, with the exact amount determined by the number of flights for the airline, he said.
Midwest, which is contemplating a possible Chapter 11 bankruptcy reorganization, has been making payments, McAdams said.
“It just isn’t the full amount,” McAdams said.
He said the delinquency dates back to July, shortly after Midwest’s financial problems were publicly disclosed. The airline has been hit hard by rising fuel costs and a decline in passengers, and it will make 40% cuts in its schedule and work force by September.
Those are among the steepest such cuts by U.S. airlines.
Oak Creek-based Midwest, which accounts for more than 50% of Mitchell’s passenger traffic, is the only airline that is behind on its gate fees, McAdams said.
Midwest executives and airport managers are discussing a payment plan for the carrier, said McAdams and company spokesman Michael Brophy.
The airport, while publicly owned, does not receive money from county taxpayers.
Its $67 million annual budget gets its largest share of revenue from parking fees, McAdams said. Gate fees paid by airlines account for 8.8% of the airport’s annual revenue, he said.
The airport is obligated to break even by the end of the year, McAdams said.
Any shortfall in gate fees from Midwest would be recovered by raising gate fees for other airlines at Mitchell, he said.
Major carriers at Mitchell include AirTran Holdings Inc., which last year mounted an unsuccessful takeover attempt of Midwest; Northwest Airlines Corp., which owns 47% of Midwest; and Delta Air Lines Inc., which is buying Northwest and will acquire the Midwest stake.