Midwest Growth Plan?

[ultrarunner]

My only question in this whole thing is how does TPG get their money back?

My guess is that TPG will sell out to NWA. NWA will then hold all the MEH assets..whatever they may be a the time.

Maybe set up MKE as a RJ maintenance facility with the hangars. Who knows.

 

[CitationLover]

My guess is that TPG will sell out to NWA. NWA will then hold all the MEH assets..whatever they may be a the time.

Maybe set up MKE as a RJ maintenance facility with the hangars. Who knows.

yeah they'll do that then ask for doj approval on a DAL merger.....ok.....

 

[fam62c]

My guess is that TPG will sell out to NWA. NWA will then hold all the MEH assets..whatever they may be a the time.

Maybe set up MKE as a RJ maintenance facility with the hangars. Who knows.

Anything is possible but if NWA buys Midwest from TPG and operates the company as an independent division I think they run into scope issues due to the size of the Midwest planes. I think if they buy it they have to merge it and I'm not sure they want to do that, especially now in the shadow of DAL/NWA. I think that if Midwest merges it will be post DAL/NWA merger. This will be very interesting but in the end TPG has to get their money from somewhere, they are deep in the hole with this buyout and it will keep getting worse if Midwest bleeds money that comes out of TPG's pockets. I'm not sure that if TPG knew then what it knows now they would have gotten involved with this caper. I just don't see a return on investment here.

 

[CitationLover]

Anything is possible but if NWA buys Midwest from TPG and operates the company as an independent division I think they run into scope issues due to the size of the Midwest planes. I think if they buy it they have to merge it and I'm not sure they want to do that, especially now in the shadow of DAL/NWA. I think that if Midwest merges it will be post DAL/NWA merger. This will be very interesting but in the end TPG has to get their money from somewhere, they are deep in the hole with this buyout and it will keep getting worse if Midwest bleeds money that comes out of TPG's pockets. I'm not sure that if TPG knew then what it knows now they would have gotten involved with this caper. I just don't see a return on investment here.

the people at TPG knew EXACTLY what they were getting into. these people aren't idiots. they will make their money one way or the other. they aren't pilots throwing darts at a dartboard to pick stocks.....

 

[Island Hopper]

The sale of the aircraft and the gates to other carriers will help to start the return on investment and the rest can be used to show a loss on a balance sheet. Perhaps offsetting some of TPG's other profitable investments.

 

[BobbyBiplane]

the purge has begun. Kolshak is TH's replacement and will basically run the show.

You had better hope not!

 

[ultrarunner]

I don't think Midwest will get merged at all. TPG MUST get a return on their money. And IMO, nothing will happen to MEH until AFTER the NWA/DAL merger is completed, although plans for MEH will be done concurrently.

I think MEH's asset's are relatively few:

The Skyway and Midwest Operating Certificates are likely the most value of anything else.

The 717's are leased if I recall, as are the hangars I believe.

Not sure about their HQ.

Skyway is getting shutdown the the certificated is being shopped. I don't see that Skyway has any value at all except the Certificate.

There just isn't much there that I can see.

The certificate and gates/operating authority are what will bring in the bucks.

But I would agree with CitationLover: TPG has thought WAY ahead, and has take ALL of this, and stuff not even talked about yet, into account when they bought in. They smarts in that group are beyond belief. Rest assured they will 'Make Their Number', no matter what. And I think that is what a large number of folks here don't understand.

TPG's involvement here is ONLY about money and profit. PERIOD. It's about 'making the number'.

They don't give a rats doo doo about keeping a company intact, keeping folks employed, etc...

Don't believe any of TPG's lip-service.

TPG put up 200 PLUS million of investors money. You can damn well bet they will make their number!

 

[CitationLover]

you people are all starry eyed or something....

AAI is a publicly traded company. Fornaro is ALL about money PERIOD. AMR is a publicly traded company. Arpey is ALL about money PERIOD. etc etc etc.

in fact i would bet in the course of your life YOU are ALL about money and paying your bills. why else would you work?

 

[meigwo]

Um.... the words "Midwest" and "Growth" should never be uttered in the same sentence.

The media blitz about the Skyway pilots aint gonna work. No one in the town cares about these 'small' airplanes. Just give them a cookie and they will be happy.

 

[Island Hopper]

TPG ......... Gordon Gecko
Midwest Airlines......Blue Star Airlines

It maybe the beer, But I think I am seeing a familiar story here.

 

[pilotmyf]

Um.... the words "Midwest" and "Growth" should never be uttered in the same sentence.

The media blitz about the Skyway pilots aint gonna work. No one in the town cares about these 'small' airplanes. Just give them a cookie and they will be happy.

These Milwaukee idiots vote for the likes of McGee and Barrett(Not to mention the local leaders in prison).....Skyway doesn't mean crap to them. Just give them Zubas and Packer sweatshirts and they are fine.

 

[deadstick]

TPG ......... Gordon Gecko
Midwest Airlines......Blue Star Airlines

It maybe the beer, But I think I am seeing a familiar story here.

I can't see TH with slicked-back hair, but I can see him saying, "Greed is good...wanna cookie?"

 

[Flydaplane]

Does NWA still own Champion or a large part of Champion, I think they used to, I'm just not sure anymore...does anyone know?

 

[CUBS1908]

midwest failures

Everyone at Skyway Airlines should give that company the ole one finger solute as they have given you. You owe them nothing but a big steaming piece terd on the ops floor and midwest hq as well. F U to all the idiots that believed that midwest had a plan for the future. That includes you as well Tim H.

Not to hijack the thread everybody but for those of you who haven't seen this yet, this is how Midwest is treating the Skyway pilots in light of all this:


Fellow Skyway Pilots,

It is with great sadness that we must report to you management’s actions regarding a severance pay package for the pilots.

As you know, we initially met with management on January 17 to discuss this issue. We gave them a proposal that mirrored the severance package the company is giving to all other Skyway employees who are losing their jobs. Yesterday, February 13, MEC Chairman and MEC Secretary-Treasurer met with CEO David Reeve, Director of Operations, and Director of Human Resources and received management’s written response.

It is with bitter disappointment that we must report to you that management has refused to extend to us, the Skyway pilots, the same severance pay package that it has given to all other Skyway employees. Although Midwest Air Group Chairman Tim Hoeksema said publicly that all employees losing their jobs would receive severance and other assistance, it is now clear that the Skyway pilots will not receive any severance pay, nor will we receive the COBRA cost-sharing package that has been given to everyone else.

In addition to excluding pilots from the severance pay package that has been given to all other employees, management’s proposal offered little value that is not already required by law. In exchange, they wanted work rule changes such as allowing captains to be assigned as first officers that may double their exposure to JA.

We asked the company to reconsider their position. We pointed out that we are the same as the non-union employees as there is no requirement either in the law or in our contract requiring severance benefits and we see no reason that the pilots should be singled out this way. Mr. Reeve simply replied that the Skyway pilots have had the benefit of a collective bargaining agreement for ten years while the other employees haven’t.

We are glad that our fellow employees are not being deprived of severance benefits – including the recently organized Skyway Flight Attendants; the company tells us that since they don’t have a contract, they will receive the benefits.

The Skyway pilots will have those benefits provided by their contract and the law:

Unless you voluntarily resign giving less than two week’s notice, you will be paid the value of your 2008 vacation;
The WARN Act provides for 60 days of pay and benefits from the time the company gave ALPA notice of the April 6, 2008 shutdown- you will be paid through the shutdown unless you elect to leave sooner;
Under COBRA, you will be eligible to buy the company’s health insurance for 18 months so long as you pay 100% of the cost.

More information on these will be provided shortly.

The bottom line: Skyway management is punishing its pilots for having union representation and a collectively bargained contract. Clearly, this vindictive and mean-spirited targeting of the Skyway pilots by management is discriminatory, anti-union, and anti-ALPA. We are considering all of our legal options.

We understand and share your outrage at the company’s actions. However, we know that you will remain professional. We will let you know if management contacts us with any information that improves this ugly situation.

Please continue to Fly Safely,

Your SYX MEC


What scumbags. My guess is Tim "retires" within 6 months.

 

[IdRtherBsailing]

F U to all the idiots that believed that midwest had a plan for the future.

Thats pretty harsh. F U to everyone who was hopeful that management knew what they were doing? I hope you mean that differently because that does not sound like a very nice thing to say.

 

[tubelcane]

IF I was that ceo of skyway, I'd have a large security detail walking me to and from my car everyday. That is a friggin outrage. This just proves management, any man. doesn't give a rats ass about their employees, any of them. I don't know how those guys sleep at night. Here's to that guy soon walking with a serious limp after an old fassion tuning up by someone with stripes on their shoulders!

 

[WRENCH]

IF I was that ceo of skyway, I'd have a large security detail walking me to and from my car everyday. That is a friggin outrage. This just proves management, any man. doesn't give a rats ass about their employees, any of them. I don't know how those guys sleep at night. Here's to that guy soon walking with a serious limp after an old fassion tuning up by someone with stripes on their shoulders!

I'm sure the cookie monsters sleep quite well at night. In fact, it would not suprise me if they all invested in plastic sheets to off set the cost of their wet (we eluded them) dreams. I on the other hand don't sleep at night. Not having answers for your family, figuring out how to pay bills and the overall uncertainty of where you are going to be is not exactly a sleepy time potion. It is really sad what the Midwest Air Group has become.

 

[GOULET!]

It is really sad what the Midwest Air Group has become.

Boy isn't that the truth. Love the new pic by the way. I think you should add a little curly tail and a pitchfork to the picture though.

 

[scrub]

Does NWA still own Champion or a large part of Champion, I think they used to, I'm just not sure anymore...does anyone know?

no. they sold it off.

 

[deadstick]

First of all, WRENCH, I love the avatar and signature.

Second, the following is from another thread. Too bad they won't start that flight until after 5 Apr. I have always enjoyed jumpseating on AirTran.

DOT 26-08
Friday, February 22, 2008
Contact: Bill Mosley
Tel.: (202) 366-4570

Spirit, AirTran Selected for New Daily Flights
From Reagan Washington National Airport
To Fort Lauderdale and Either Milwaukee or Jacksonville

The U.S. Department of Transportation (DOT) today awarded AirTran Airways and Spirit Airlines each the right to begin a new daily round trip to Ronald Reagan Washington National Airport. AirTran will serve either Jacksonville, FL or Milwaukee, WI, and Spirit will fly to Fort Lauderdale, FL.

DOT awarded the two carriers exemptions to the slot limits which govern takeoffs and landings at Reagan National and said the carriers must begin their new services by May 3.

“These new services will mean lower fares and more choices for thousands of passengers flying to Washington, DC,” said U.S. Transportation Secretary Mary E. Peters.

In its decision, the Department said it selected the proposals of AirTran and Spirit over those of three other carriers because they would provide the greatest competitive benefits. Both carriers have a record of providing low-fare service and would offer more seats than competing carriers, the Department said.

In addition to AirTran and Spirit, the Department received applications from Comair for service to Birmingham, AL and Fort Walton Beach, FL; Midwest Airlines for service to Milwaukee and Kansas City, MO; and US Airways for service to Pensacola, FL.

The exemptions to the slot limitations at Reagan National were created by Congress to promote airline competition and enhance air service to the nation’s capital. One slot permits one daily takeoff or landing; thus, two slot exemptions are required for a single daily round trip. All exemptions have to be used only for service within the 1,250-mile perimeter that is imposed at Reagan National by statute. AirTran and Spirit each were awarded two exemptions.

The exemptions awarded to AirTran and Spirit were made available when ATA Airlines ceased service between Chicago-Midway and Reagan National on Nov 28, 2007. The carrier was operating four of the 44 Reagan National exemptions created by the Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (AIR-21) and the Vision 100 – Century of Flight Aviation Authorization Act.

The Department awarded back-up authority to Midwest Airlines for service to either Milwaukee or Kansas City, MO in the event that either AirTran or Spirit fails to commence service on the routes they were awarded.

The Department’s decision, carrier applications and other documents regarding the proceeding may be obtained on the Internet at www.regulations.gov, docket number DOT-OST-2000-7182.


-END-

 

[GOULET!]

Thank you for making the recommended changes WRENCH. Looks much better. Your slogan couldn't be anymore spot on.