Midwest Airlines

[Clyde]

Just an Observation

I do not have an interest in either company nor this thread, but I have made one observation and that has led to a question.

Observation:

Midwest is based in MKE, and Airtran is based in ATL. Delta is also based in ATL, and has just filed for chapter 11 bankruptcy protection. With Delta declaring chapter 11, they will soon be lowering every cost imaginable (including wages) and will be more competitive for the business of air travelers.

Midwest is the dominant carrier out of MKE, and although Delta flies to and from MKE, it's presence there isn't very big.

Airtran's primary hub is ATL, and the majority of it's flights pass through there. Delta's primary hub is ATL, and flies to just about everywhere Airtran flies and also to other cities.

Here is my question:

If Delta becomes a very lean and competitive carrier out of ATL, will Airtran be negatively impacted by this? The odds of a chapter 7 liquidation in the immediate future are probably slim to none, and if Delta cuts it's costs enough, I can see them putting a lot of negative pressure on Airtran's business out of ATL, especially if Delta can sell the same tickets at or below Airtran's prices and offer things such as frequent flyer miles.

With regards to Midwest's operation, Delta may be very competitive on a few routes, but I don't see the majority of Midwest's business being negatively impacted by Delta's restructuring.

I'm just curious if any others out there have their thoughts as to what may go down in the next 6-12 months? It seems like the airline industry is about to enter a large merger/consolidation era.

 

[Ty Webb]

It's hard to say what will happen between DAL and AirTran. I don't think it will be that bleak, for several reasons:

1) Delta has been already been pricing their tickets like they didn;t have to break even. In the past three years, they have burned through approximately $10 billion dollars trying to compete against us and JB.

2) They will also have to do some fleet reduction, which will reduce capacity.

3) Even if they get their costs down significantly, they will still have to pay more than us for fuel, for credit, and for labor . . . not to mention the RJ's with their higher CASM.

I am sure that our management will try to use this to get concessions out of our pilot group, but I can tell you right now that it isn't going to happen. We are already the most productive (CASM) pilot group in the industry, and the pilots here know it.

Sorry, but they're going to have to figure out how to raise the fares . . . . I'm not chipping in for gas money.

 

[Clyde]

Sorry, but they're going to have to figure out how to raise the fares . . . . I'm not chipping in for gas money.

I really hope rising fares become more of the norm and less of the exception. Sooner or later airline management has to realize that the best source of revenue is from the sale of tickets above cost and not from charity.

 

[Ty Webb]

I have noticed that this clown posts whenever Ty boy needs help.
The conclusion is Ty and this Clown are the same. Give it a rest Ty boy and go fly your greyhound.

What's the matter, Chief, Viagra not working anymore? Or are those orthopedic shoes pinching you again?

Here's a suggestion- loosen up the velcro on those cheesy shoes, put those dogs up on the coffee table, fire up a big ol' spleef and hide out behind those wrap-around cataract re-entry goggles. . . . .

By the time they catch up with you, your job'll be history. anyway. Might as well enjoy it.

 

[AlbieF15]

...well...in a huge flip from the 80's, the LCCs are nicer to ride on in most cases than many legacies. I don't think anyone on the C concourse is in any risk of losing work to DAL. In fact, DAL may end up competing with some of its former blood (ASA). I have no idea what/how the agreement with skywest does to the DAL/ASA relationship, but I'm sure the people who invested in ASA are NOT going to want to see an expansion of mainline flying at the expense of RJ and ATR trips. And when faced with an RJ for 2 hours or a 717...well...I have a suspicion the consumer will gravitate towards the larger jet.

Standard disclaimer...been wrong before. (As a point of reference, I never thought US Air or United will still be in operation by Fall 05...so put me down as 100% speculation).

Ty--home okay after the summer of hell? I'm about to give up on the gulf coast, move to Montana, and buy horses and snowmobiles...

 

[Ty Webb]

...
Ty--home okay after the summer of hell? I'm about to give up on the gulf coast, move to Montana, and buy horses and snowmobiles...

Yeah, Kallispell sounds pretty good to me, right about now. Anyone want to buy a slightly used generator?

Well, I lost a beach house, but my primary home is A-OK, so I guess that's what really matters. Many people have lost much more than me. . . their homes, their jobs, and most of everything they owned. In the scope of things, I got off easy.

At least I still have my sense of humor, plus my gold medallions, my tight American slacks and my little black book from the Fox Bar.

 

[bestpilot]

Yeah, Kallispell sounds pretty good to me, right about now. Anyone want to buy a slightly used generator?

Well, I lost a beach house, but my primary home is A-OK, so I guess that's what really matters. Many people have lost much more than me. . . their homes, their jobs, and most of everything they owned. In the scope of things, I got off easy.

At least I still have my sense of humor, plus my gold medallions, my tight American slacks and my little black book from the Fox Bar.

Duude, dats da same stuff dat happend to me! Dats like too mucha da same stuff to be like a coinchident

I lost a beach house....Yup
but my primary home is A-OK....Yup
I got off easy...Yup
At least I still have my sense of humor, plus my gold medallions, my tight American slacks and my little black book from the Fox Bar...Yup

Duuuuuuuuuuuude, ole Chuckie Yogourt, dat Silly Rabbit, dude your right, bro, I gess I am Ty Guy, I just aint be knowin it before like you told us, I mean me, cause since we be like da same, than its like we are me and like I am he and like he is me, AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA, dats like hurtin my medualla oblangata!