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From the 11/22/03 Raleigh, NC, News & Observer
Midway jobs could return
But old contracts might not apply
By DUDLEY PRICE, Staff Writer
Nearly 200 former Midway Airline employees could get their jobs back if a Connecticut company wins court approval to buy the bankrupt carrier's jets and other assets.
Wexford Capital, an investment firm based in Greenwich, Conn., has offered $8.6 million for Midway's eight 50-seat regional jetliners, parts and the U.S. Department of Transportation certificate that allowed Midway to operate as an airline, according to bankruptcy court documents filed late Thursday.
The court-appointed liquidation trustee Joseph Callaway recommended that the court approve the offer unless a competing bidder emerges that is willing to pay at least $650,000 more.
According to a letter of intent to buy the planes and certificate included in the filing, Wexford would offer jobs to managers, pilots, co-pilots, flight attendants, maintenance workers and other employees. Midway had 188 employees when it shut down Oct. 29.
Wexford also would buy most of the remaining office paraphernalia needed to operate as an airline and assume the lease for Midway's former headquarters offices in Morrisville. That lease has a remaining term of 20 months.
But Midway's old union contracts -- with either pilots or flight attendants -- would no longer be binding if Wexford starts a new, as yet unnamed, airline here, according the firm's offer filed in bankruptcy court. That means Wexford would offer terms that the former pilots and flight attendants could either accept or not. If not, they would have to look for jobs elsewhere.
Mark Stewart, former head of Midway's pilot union, doubted many of Midway's 85 former pilots would want to return to work for Wexford unless they were rehired according to seniority with the company, as required in their old contract with Midway.
"I don't think so," Stewart said when asked about pilots going to work for the new, as yet unnamed ,airline. "If it won't follow the succession clause, I have a problem with that."
Wexford's general counsel, Arthur Amron, could not be reached for comment Friday.
Wexford's offer will be considered at a bankruptcy court hearing scheduled for Dec. 10, and requires a judge's approval. Stewart said he knows of another potential bidder but declined to name who it was.
Since January, Midway had tried to reinvent itself as commuter feeder carrier for US Airways. But the airline gave up its fight to exit bankruptcy last month because it couldn't reach agreement with the pilots union needed to get a $10 million to $15 million loan from an unidentified investor.
Wexford, which had loaned Midway $8 million two years ago, now wants to own the airline.
Wexford owns Chautauqua Airlines of Indianapolis, which provides commuter flights for US Airways, Delta and American. It also owns Shuttle America of Fort Wayne, Ind., which serves as a US Airways feeder and is a backer of Republic Airlines, a new airline in Kentucky.
Midway jobs could return
But old contracts might not apply
By DUDLEY PRICE, Staff Writer
Nearly 200 former Midway Airline employees could get their jobs back if a Connecticut company wins court approval to buy the bankrupt carrier's jets and other assets.
Wexford Capital, an investment firm based in Greenwich, Conn., has offered $8.6 million for Midway's eight 50-seat regional jetliners, parts and the U.S. Department of Transportation certificate that allowed Midway to operate as an airline, according to bankruptcy court documents filed late Thursday.
The court-appointed liquidation trustee Joseph Callaway recommended that the court approve the offer unless a competing bidder emerges that is willing to pay at least $650,000 more.
According to a letter of intent to buy the planes and certificate included in the filing, Wexford would offer jobs to managers, pilots, co-pilots, flight attendants, maintenance workers and other employees. Midway had 188 employees when it shut down Oct. 29.
Wexford also would buy most of the remaining office paraphernalia needed to operate as an airline and assume the lease for Midway's former headquarters offices in Morrisville. That lease has a remaining term of 20 months.
But Midway's old union contracts -- with either pilots or flight attendants -- would no longer be binding if Wexford starts a new, as yet unnamed, airline here, according the firm's offer filed in bankruptcy court. That means Wexford would offer terms that the former pilots and flight attendants could either accept or not. If not, they would have to look for jobs elsewhere.
Mark Stewart, former head of Midway's pilot union, doubted many of Midway's 85 former pilots would want to return to work for Wexford unless they were rehired according to seniority with the company, as required in their old contract with Midway.
"I don't think so," Stewart said when asked about pilots going to work for the new, as yet unnamed ,airline. "If it won't follow the succession clause, I have a problem with that."
Wexford's general counsel, Arthur Amron, could not be reached for comment Friday.
Wexford's offer will be considered at a bankruptcy court hearing scheduled for Dec. 10, and requires a judge's approval. Stewart said he knows of another potential bidder but declined to name who it was.
Since January, Midway had tried to reinvent itself as commuter feeder carrier for US Airways. But the airline gave up its fight to exit bankruptcy last month because it couldn't reach agreement with the pilots union needed to get a $10 million to $15 million loan from an unidentified investor.
Wexford, which had loaned Midway $8 million two years ago, now wants to own the airline.
Wexford owns Chautauqua Airlines of Indianapolis, which provides commuter flights for US Airways, Delta and American. It also owns Shuttle America of Fort Wayne, Ind., which serves as a US Airways feeder and is a backer of Republic Airlines, a new airline in Kentucky.
