Midway's concessionary contract

[the turtle]

I've heard that Midway's latest contract lowered the bar even further, especially for 70+ seat rates...does anyone have any solid facts? Is DW signing off on this new P.O.S.? Aren't most of their pilots J4J's, and will leave for MDA when slots open anyway? You would think that those guys know better than that.

 

[WrightAvia]

http://www.newsobserver.com/business/story/2937304p-2694845c.html

 

[FlyComAirJets]

Sorry to pass on the bad news but Duane Woerth adamently stated at the Comair pilot meeting that he would not sign off on a highly concessionary contract at Midway much along the lines of what happened at CCAir.

 

[dashflyer]

Yes........but as the wholly-owned pilots found out, what Duane says and what Duane signs are two entirely different things

 

[belchfire]

Ho ho ho...Midway got another
stay of execution...I don't get it.
but as has been pointed out in other
posts, I'm don't know enough to run
an airline! Two weeks! Whoohoo!

And now for the names of the 3
most likely canidates for "unnamed
inverstor"....Drumroll please...

1) J (lower)enstein

2) Richy Story

3) Don Carty

I feel your pain!

 

[Mercy98]

The pay scales remain as they are in the current contract, with the contract being extended out to 10 years. This was very recently presented to the pilots from mgt. Current contract payscales are through 9-1-08.

The questions that remain are: 1) will the "mystery investor" sign-off on this. 2) will ALPA nat'l sign-off on this. and 3) will the company and the MEC find some reason to agree to terms.

Not to be fatally optimistic (still), but there is still a long way to go and I don't hold out much hope.

I hope I'm wrong, but there has to be a point at which it becomes too little offered to make the job worthwhile.

The next meeting with the BK judge has been changed from Oct. 29 to Oct. 30 in the a.m.

 

[the turtle]

thanks for the posts...I guess whatever concessions I had heard about isn't true, however I'm still in the dark as to Midway's payrates, and to think that they're frozen for another ten years is atrocious.

it really is amazing that this BK judge allows Midway's CEO to blow smoke up his skirt time after time....both appear inept IMHO!

 

[fletch]

I heard the Co. wanted 80 cents per/hr per diem, is this True?
WTF OVER

 

[belchfire]

nah, that's what JLowerenstien wants
to see the industry average at!

 

[Mercy98]

Per Diem remains at $1.40...no changes in the negotiations, or the life of the contract offered.

 

[the turtle]

Midway Airlines seeing financial problems again
10/24/2003 9:55 AM
By: News 14 Carolina Staff


Midway Airlines seeing financial problems again

The airline has one week to reach a deal with the pilot's union or risk liquidation in bankruptcy court.

triangle-based Midway Airlines is flirting with financial disaster again.

The company has one week to reach a deal with the pilot's union or risk liquidation in bankruptcy court.

The Durham Herald-Sun reported on Friday morning that U.S. Airways and an unnamed investor turned down Midway's last minute deal with the pilot's union.

The agreement is necessary to satisfy the investor who may pump up to $5 million into the struggling commuter airlines.

Midway first declared bankruptcy in 2001. Since then, it has operated under U.S. Airways.

 

[the turtle]

Midway deal hits snag
If talks this weekend are fruitless, the airline could be grounded next week

By DUDLEY PRICE, Staff Writer


Facing a possible court-ordered liquidation next week, Midway Airlines has been unable to reach a new labor agreement with its pilots that it needs to exit bankruptcy.
Midway's president and chief executive, Robert Ferguson, notified the pilots by e-mail Thursday that a tentative contract agreed to two weeks ago had been rejected by an unidentified investor that the Morrisville-based carrier was counting on for at least $5 million.

Midway now plans to make one final proposal to the pilots that would be acceptable to the investor, according to the e-mail supplied by the pilots union.

Meanwhile, Midway said it might ground one of its eight regional jets as early as today because it has been unable to hire pilots.

Mark Stewart, a Midway pilot who heads the airline's chapter of the Air Line Pilots Association, said the two sides could resume talks as soon as this weekend.

"I personally remain optimistic this can be worked out," Stewart said. "It's kind of hard to say [what will be done] when we don't know what will be put forward."

Ferguson was unavailable Friday.

Once the Triangle's busiest carrier, Midway has been trying to reinvent itself as a commuter affiliate of US Airways. But the airline, which has been in Chapter 11 for about 26 months, needs a loan to pay off creditors after it leaves bankruptcy.

US Airways says that it has identified an unidentified investor that is willing to provide the financing but that the investor is insisting on concessions from the pilots.

Midway faces a hearing Thursday when U.S. Bankruptcy Judge A. Thomas Small said he will decide whether to convert the carrier's case to Chapter 7. If the case is converted, the airline could be liquidated and its assets sold to repay creditors.

Exactly what caused the investor's rejection of the earlier agreement is unclear. Ferguson had said the key concessions involved an extension of the terms of the existing contract from six to 10 years and the pilots' agreement to fly aircraft other than Midway's existing fleet of 50-seat Canadair Regional Jets. The pilots had agreed to fly a variety of planes but declined to extend their contract in an oral agreement reached only minutes before a liquidation hearing Oct. 9.

That last-minute agreement prompted Small to postpone considering liquidation until Thursday to see whether the agreement satisfied the investor.

Stewart said Friday that Ferguson had also wanted a list of other concessions that pilots didn't agree to, but he declined to elaborate.

US Airways, meanwhile, is making plans to rebook passengers if Midway is grounded next week, said US Airways spokesman David Castelveter.

US Airways flies to all the destinations served by Midway with either US Airways Express or US Airway mainline flights. If Midway ceases flights, passengers would be rebooked, either on US Airways or other carriers, or given refunds, he said.

"We are aware that the bankruptcy judge may convert Midway to Chapter 7 on Oct. 30th. While we hope that Midway finds a way through this difficult time, we are taking prudent steps to ensure that current operations go as smoothly as possible," Castelveter said.

Midway operates five daily round-trip flights between Raleigh-Durham International Airport and Reagan National Airport in Washington and three from RDU to New York's La Guardia Airport. Midway also operates 22 daily round trips from Reagan to 11 destinations: Albany, N.Y.; Nashville, Tenn.; Burlington, Vt.; Manchester, N.H.; Charleston, S.C.; Greenville-Spartanburg; S.C.; Huntsville, Ala.; Jacksonville, Fla.; Portland, Maine; Louisville, Ky.; and Toronto.