DASHDRIVER said:
fam I think AWAC will be resistent to add an additional fleet type for only 10-12 a/c. I think they can and will get behind 90 seat Crj's or 76 seat ERJ's if they can get them, maybe even a large scale 70 turboprop operation. I do not see AWAC buying Skyway. We already have everything that Skyway could offer us: Aircraft, managment, a ground services division, trained personnel in MKE. I agree the company may get involved with some sort of money deal to help finance Midwest growth, I think the rest will be a stretch.
I still don't think that this deal is bad news for Skyway. They provide an afordable product to Midwest. They have an a/c perfect for the EAS contracts Midwest flys, and they can cover flights for whoever pulls all those CRJ's out of storage and has them grounded everyday for the first six months fixing all the problems.
DD
I agree with you DD. I'm sure that Air Wisconsin doesn't want the 328Jets, although they will work well in many Skyway markets after the 1900's are gone. Also, as I said, Air Wisconsin doesn't need the management/administrative functions of Skyway and they would be replaced at some point when the carriers were integrated. I think that Skyway would go cheap, Midwest mainly wants to get out from under aircraft and facility leases, and as I said, they would keep the ground services division and catering to serve Midwest so Air Wisconsin wouldn't need to pay for a duplicate operation. However, as I said, Midwest doesn't do anything without something in it for them. If taking over the Skyway operation is the price that Air Wisconsin must pay to get a good, exclusive long-term deal they MAY be willing to do it if they see enough future potential in the deal. Also, I'm not sure what the Air Wisconsin agreement says but it's been in vogue lately for the regionals to operate multiple certificates to get around conflicts between codeshare partners and, more ominously, to scare labor with transfering work. It could be good if Air Wisconsin got Skyway and integrated the carriers but bad if they attempted to pit the pilot groups against one another.
All I know is that there are some wierd things happening at Skyway. The attrition is relentless and staffing is way short but they are not (by orders from high up apparently) hiring replacement pilots. It looks like they will simply delete Beech flying and park/dispose of the airframes as they run out of pilots. It looks like the 1900's are getting set to be retired before their leases expire and this will result in dropped cities unless something else is up. I still say that Midwest would be crazy to operate a certificate for 10-12 planes, they have to be looking at a way to get out from underneath the 328 leases and Air Wisconsin is the obvious avenue. It seems to me that Skyway would be nothing more than a thorn in the side of Midwest unless they intend to invest in the airline and let it reach it's potential....which they obviously don't. Midwest has backed themselves into a corner so badly with poor fleet planning at both airlines that something has to give. I think they want out of Skyway so they can try to fix the mess they have created at Midwest by buying the 717 when they should have bought buses or 737's in the first place.
There could also be other possibilities and Johnny Chimpo hit on one of them; some type of equity investment by AirWis in Midwest to help them finance MD-80 replacements. I'm not sure it would go as far as AirWis and Midwest merging because this could cause problems with Airways. I can't see Airways being interested in Midwest because they already have their hands full with the AMW/Airways merger and they wouldn't want the 717's for sure but ANYTHING is possible in this business. There's also the possibility that Air Wisconsin will just take a pass on the whole deal because they may have bigger and better opportunities with the majors. Any relationship with Midwest could limit future opportunities as we just saw with the conflict of interest between CoEx, Continental and Midwest. Generally, Midwest wants everything for nothing and it may be hard when it comes time to actually work out the details. Midwest tends to get "cold feet" when it's time to actually sign on the dotted line.
For what it's worth, I also believe that the whole RFP thing was a scam anyway. I think that there was something going on between Midwest and AirWis, hence the JR defection, anyway. I would bet that AirWis was really the only player in the game from day 1 but they had to send out the RFP's to make it appear they were looking for the lowest bidder. They probably found various "reasons" to weed out everyone else. Wow, I really AM a conspiracy theorist
