flying zephyr
Well-known member
- Joined
- Mar 8, 2005
- Posts
- 86
If you are a manager, please communicate this information to employees
without e-mail in a timely manner, and in a way that is effective for your
work group (i.e. shift briefings, mailbox distribution, one-on-one,
bulletin boards). Thank you.
To: All Midwest and Skyway Employees
Date: September 3, 2008
From: T.E. Hoeksema
Subject: Restructuring Progress
I am pleased to announce significant progress in our restructuring plan and
$60 million in additional financing, including commitments from TPG Capital
and Republic Airways Holdings, an Indianapolis-based airline holding
company.
A portion -- $40 million -- of the additional financing has already been
funded, with an additional $20 million to be funded upon completion of
certain milestones in our voluntary restructuring plan. This financing
provides us the best opportunity to preserve what our customers have always
valued from our airline, while positioning us for a return to sustained
profitability and future growth. Under this agreement, Northwest Airlines
will continue its codeshare and frequent flyer programs with us.
As part of the financing agreement, Republic has entered into an airline
services agreement with Midwest to operate 12 Embraer 170 jets under the
Midwest Connect brand. Republic will operate the 76-seat Embraer 170s until
we can transition the fleet under our own certificate. The Embraer 170
service will be introduced into Midwest Connect's schedule throughout the
fall, beginning October 1.
I am also pleased to tell you that we have reached an agreement in
principle with Boeing Capital Corporation on renegotiated leases for our
fleet of Boeing 717s. Under the terms of the agreement, we will continue to
fly nine of the original 25 Boeing 717s we had under lease for our mainline
fleet, returning 16 to Boeing this fall.
We plan to continue negotiating with the unions representing our pilots and
flight attendants on concessions necessary to align our labor costs to the
marketplace, in order to meet one of the final goals of our restructuring
plan. The airline services agreement with Republic will result in
additional furloughs for Midwest pilots, flight attendants and maintenance
staff until we can operate the Embraer 170 fleet on our own FAA operating
certificate. We expect this process, which includes training for its flight
crews and maintenance staff, will take eight months to a year.
I recognize the difficulty this presents to our flight crews and
maintenance staff, who will experience additional temporary furloughs. We
informed union leadership of our plan and advised them that this was the
best option to keep our airline viable and that in the best interests of
our employees, customers and communities, we need them to come to the table
on cost reductions so we can obtain certification and bring the jobs back
to Midwest.
As you know, our restructuring has focused on a strategy to serve our core
business markets, cost reductions necessary to address high jet fuel prices
and a soft economy, and revenue enhancement actions. Revenue enhancement
actions that are part of our restructuring include the introduction of
Midwest Class seating on our Boeing 717 fleet, which was announced last
week, as well as a $15 fee for the first checked bag and an increase in the
second checked bag fee from $20 to $25. Those fees will apply to tickets
purchased on or after September 4 for travel October 21 and beyond.
I'd like to emphasize that our commitment to customer service and focus on
nonstop flights to key business markets will continue. Operating a more
fuel-efficient, flexible mix of aircraft makes good economic sense in this
new energy environment for the airline industry. We have had to make
difficult decisions as part this restructuring that have resulted in change
for our airline. But our strategy of offering nonstop service to key
business markets and giving our customers what they have always valued
about the Midwest brand -- what we were built on -- will not change.
Please join me in welcoming Republic Airways as a new partner with TPG in
Midwest Airlines. Thank you.
Unreal, what a fubar'd industry. Welcome to the end
without e-mail in a timely manner, and in a way that is effective for your
work group (i.e. shift briefings, mailbox distribution, one-on-one,
bulletin boards). Thank you.
To: All Midwest and Skyway Employees
Date: September 3, 2008
From: T.E. Hoeksema
Subject: Restructuring Progress
I am pleased to announce significant progress in our restructuring plan and
$60 million in additional financing, including commitments from TPG Capital
and Republic Airways Holdings, an Indianapolis-based airline holding
company.
A portion -- $40 million -- of the additional financing has already been
funded, with an additional $20 million to be funded upon completion of
certain milestones in our voluntary restructuring plan. This financing
provides us the best opportunity to preserve what our customers have always
valued from our airline, while positioning us for a return to sustained
profitability and future growth. Under this agreement, Northwest Airlines
will continue its codeshare and frequent flyer programs with us.
As part of the financing agreement, Republic has entered into an airline
services agreement with Midwest to operate 12 Embraer 170 jets under the
Midwest Connect brand. Republic will operate the 76-seat Embraer 170s until
we can transition the fleet under our own certificate. The Embraer 170
service will be introduced into Midwest Connect's schedule throughout the
fall, beginning October 1.
I am also pleased to tell you that we have reached an agreement in
principle with Boeing Capital Corporation on renegotiated leases for our
fleet of Boeing 717s. Under the terms of the agreement, we will continue to
fly nine of the original 25 Boeing 717s we had under lease for our mainline
fleet, returning 16 to Boeing this fall.
We plan to continue negotiating with the unions representing our pilots and
flight attendants on concessions necessary to align our labor costs to the
marketplace, in order to meet one of the final goals of our restructuring
plan. The airline services agreement with Republic will result in
additional furloughs for Midwest pilots, flight attendants and maintenance
staff until we can operate the Embraer 170 fleet on our own FAA operating
certificate. We expect this process, which includes training for its flight
crews and maintenance staff, will take eight months to a year.
I recognize the difficulty this presents to our flight crews and
maintenance staff, who will experience additional temporary furloughs. We
informed union leadership of our plan and advised them that this was the
best option to keep our airline viable and that in the best interests of
our employees, customers and communities, we need them to come to the table
on cost reductions so we can obtain certification and bring the jobs back
to Midwest.
As you know, our restructuring has focused on a strategy to serve our core
business markets, cost reductions necessary to address high jet fuel prices
and a soft economy, and revenue enhancement actions. Revenue enhancement
actions that are part of our restructuring include the introduction of
Midwest Class seating on our Boeing 717 fleet, which was announced last
week, as well as a $15 fee for the first checked bag and an increase in the
second checked bag fee from $20 to $25. Those fees will apply to tickets
purchased on or after September 4 for travel October 21 and beyond.
I'd like to emphasize that our commitment to customer service and focus on
nonstop flights to key business markets will continue. Operating a more
fuel-efficient, flexible mix of aircraft makes good economic sense in this
new energy environment for the airline industry. We have had to make
difficult decisions as part this restructuring that have resulted in change
for our airline. But our strategy of offering nonstop service to key
business markets and giving our customers what they have always valued
about the Midwest brand -- what we were built on -- will not change.
Please join me in welcoming Republic Airways as a new partner with TPG in
Midwest Airlines. Thank you.
Unreal, what a fubar'd industry. Welcome to the end
uke:
