Reuters
Midwest Express Skyway pilots union agrees to cuts
Thursday July 10, 4:01 pm ET
CHICAGO, July 10 (Reuters) - Pilots at Midwest Express Holdings Inc.'s (NYSE:MEH - News) Skyway Airlines regional carrier have agreed tentatively to cost cuts intended to help the airline avoid bankruptcy, the union for the group said on Thursday.
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Midwest Express, based in Milwaukee, said in June that a bankruptcy filing by mid July was likely if workers, airplane financiers and lenders did not agree to restructure deals to help restore profitability.
Jet captain pay would be cut more than 7 percent, plus some nonwage reductions, under the five-year tentative agreement to be voted on by mid July, said Brian Belmonti, chairman of the Skyway unit of the Air Line Pilots Association (News - Websites).
There are about 220 Skyway pilots, with jet captains paid $32,000 to $45,000 per year, Belmonti said. With 10 regional jets and 15 turboprop planes in the Skyway fleet, more than half the group makes less than $20,000 per year, he said.
"We are pleased to finally reach an agreement that addresses the needs of the Skyway pilots while providing the necessary financial relief to our airline," Belmonti said.
Pilots for Midwest Airlines previously agreed to temporary pay cuts under the Midwest Express cost-cutting plan.
Shares of Midwest Express were off 4 cents, or 1.78 percent, at $2.21 Thursday on the New York Stock Exchange (News - Websites).
Midwest Express Skyway pilots union agrees to cuts
Thursday July 10, 4:01 pm ET
CHICAGO, July 10 (Reuters) - Pilots at Midwest Express Holdings Inc.'s (NYSE:MEH - News) Skyway Airlines regional carrier have agreed tentatively to cost cuts intended to help the airline avoid bankruptcy, the union for the group said on Thursday.
ADVERTISEMENT
Midwest Express, based in Milwaukee, said in June that a bankruptcy filing by mid July was likely if workers, airplane financiers and lenders did not agree to restructure deals to help restore profitability.
Jet captain pay would be cut more than 7 percent, plus some nonwage reductions, under the five-year tentative agreement to be voted on by mid July, said Brian Belmonti, chairman of the Skyway unit of the Air Line Pilots Association (News - Websites).
There are about 220 Skyway pilots, with jet captains paid $32,000 to $45,000 per year, Belmonti said. With 10 regional jets and 15 turboprop planes in the Skyway fleet, more than half the group makes less than $20,000 per year, he said.
"We are pleased to finally reach an agreement that addresses the needs of the Skyway pilots while providing the necessary financial relief to our airline," Belmonti said.
Pilots for Midwest Airlines previously agreed to temporary pay cuts under the Midwest Express cost-cutting plan.
Shares of Midwest Express were off 4 cents, or 1.78 percent, at $2.21 Thursday on the New York Stock Exchange (News - Websites).