Midwest or stay at Eagle

[Chuck Yogourt]

Well, not a true $26.9M loss. Part of that loss is attributed to impairment charges (paper loss) of $15.6M related to the pending retirement of two MD-81's in December. The net loss relating to cash lost appears to only be $11.3M.

As for unrestricted cash exiting Q3, here's a quote from the press release:

"The company ended the quarter with $76.2 million in unrestricted cash, down from $84.7 million on June 30, 2005 and $81.5 million at December 31, 2004 -- primarily due to seasonal fluctuations in the business and continued fuel cost increases. Capital spending -- net of credits used to fund such spending -- resulted in a cash outlay of $7.1 million for the nine months and consisted primarily of costs associated with the acquisition of additional spare parts for the Boeing 717 fleet, purchase of an MD-80 engine, and equipment and leasehold improvements for the in-house dining services program."

So, it appears we didn't lose as much unrestricted cash as I had anticipated. However, that still doesn't mean we're out of danger yet. I don't know what the SLT in the Cookie Palace has planned on reducing our continued losses. Guess we'll find out during the Q4 and Year End conference call in January.

Good luck to all in the Midwest family.

HMM

We will need luck to right this sinking ship. Loses continue to mount and those in charge are clueless on what to do next. We are filling planes and advance bookings look great but they mean nothing if you are charging nothing for those seats. Fuel will continue to hurt us for the forseeable future. We have quit growing in MKE due to tax fight with the liberal idiots of Wisconsin. We have 5 more 717's coming with no new routes or ideas as to what to do with them. My gut feeling is this company has a year to a year and a half to get their act together or the bottom feeders like Air Tran will be there to pick off the leftovers.

 

[ShadowFlight]

We will need luck to right this sinking ship. Loses continue to mount and those in charge are clueless on what to do next. We are filling planes and advance bookings look great but they mean nothing if you are charging nothing for those seats. Fuel will continue to hurt us for the forseeable future. We have quit growing in MKE due to tax fight with the liberal idiots of Wisconsin. We have 5 more 717's coming with no new routes or ideas as to what to do with them. My gut feeling is this company has a year to a year and a half to get their act together or the bottom feeders like Air Tran will be there to pick off the leftovers.

With approximately $76M remaining in unrestricted cash and conservatively forecasting a cash burn of $15M per quarter, we would have a zero cash balance 15 months from now.

I certainly hope management gets a clue very soon or we'll be an afterthought before too long.

Peace

SF

 

[runwayjockey]

We have quit growing in MKE due to tax fight with the liberal idiots of Wisconsin.

I thought that was Northwest's doing when they took on the state of Wisconsin in court saying your tax breaks were unconstitutional? What do the lib's have to do with that?

Top court to review airline tax ruling
By TOM DAYKIN
[email protected]
Posted: May 26, 2005
A judge's ruling striking down tax breaks for two Wisconsin-based airlines will be reviewed by the state Supreme Court.



The court said Thursday it will hear an appeal of a Dane County Circuit Court ruling in 2003 saying property tax exemptions for Midwest Airlines Inc. (stock: MEH) in Oak Creek and Air Wisconsin Airlines Corp. in Appleton were unconstitutional.

The exemption was challenged in a lawsuit by Egan, Minn.-based Northwest Airlines Inc. Northwest contended it should not have to pay about $1.6 million in property taxes for its Wisconsin operations because the Legislature had exempted Midwest and Air Wisconsin.

State officials said Northwest did not qualify for the tax break because it didn't have a Wisconsin hub or meet other criteria, such as having 15 non-stop destinations from Wisconsin.

Northwest, however, said it has a large presence in Wisconsin and that it was not fair to exempt its competitors from paying property taxes.

Midwest executives have said the airline will reconsider its growth plans in the state if the exemption isn't restored.

Midwest and Northwest are the No. 1 and No. 2 carriers at Milwaukee's Mitchell International Airport. Air Wisconsin provides regional jet service for United Airlines under the United Express name but is phasing out of that contract and will serve as a regional carrier for US Airways Group Inc."

 

[FN FAL]

I'm to tired to read the thread to see if this has been posted already, so appologies in advance if it has. Don't shoot the messenger, I just noticed the story on the way to turning off the computer.

Midwest Air Group's losses double in third quarter
MILWAUKEE (AP) -- Midwest Air Group Inc. lost twice as much money in the third quarter as it did the same quarter last year, hurt by competition and record fuel costs, the company said in its earnings report Thursday.

The operator of Midwest Airlines and Midwest Connect said it had a net loss of $26.9 million for the third quarter compared to a loss of $13.4 million a year ago. Its loss per share was $1.54 in this quarter compared to 77 cents in the third quarter last year.

The loss included $15.6 million due to the planned retirement of two MD-81 aircraft in December. One is for sale and the other will be used for charter operations until next May and then sold, the company said.

Without the charge, the airline lost $11.3 million, roughly in line with expectations of analysts polled by Thomson Financial, who expected a loss of 64 cents a share, or about $11.2 million.


After the earnings announcement, Midwest shares rose 6 cents, or 3.2 percent, to close at $1.95 on the American Stock Exchange.Midwest reported a revenue increase of 32 percent to $136.6 million. The company said price cuts and schedule and service enhancements caused a 46.6 percent increase in passenger traffic over a year ago.

"We achieved significant increases in revenue, traffic and passenger loads," said Midwest chairman and chief executive officer Tim Hoeksema. "However, the highly competitive industry environment and record fuel costs ... contributed to a difficult quarter from a profitability perspective."

Fuel costs increased by $19.7 million, or 69.1 percent, to $48 million, with the higher prices of fuel accounting for $13.4 million of the rise, the company said.

The company ended the quarter with $76.2 million in unrestricted cash, down from $84.7 million at the end of June, which it blamed on seasonal fluctuations in the business and higher fuel costs.

Milwaukee-based Midwest serves 47 U.S. cities through hubs in Milwaukee and Kansas City, Mo.

xxxxxx

 

[plucky]

Looks like Eagle will keep your paycheck coming longer then Midwest with these numbers.

 

[crashpad]

FRONTIER posted a $6.9 million quarterly profit yesterday.

Just wanted to spread the sunshine!

 

[Ty Webb]

My gut feeling is this company has a year to a year and a half to get their act together or the bottom feeders like Air Tran will be there to pick off the leftovers.

Chuckles, obviously your views are shared by your management, and that's the reason that, in another 12 months, you and your "Cookie Palace" managers can all sit over at the Dew Drop Inn on Howell Ave and cry into your Old Styles about what a great airline you had, and how those "bottom feeders" took over "your" airplanes and then put sand in your vaseline. After reading your stinking diatribes on this board for the past year, I won't feel sorry for you at all.

Our management has tried to work a deal with your management for a while, but they'd rather keep hoping and praying for a miracle than make a deal wid "dat ol' debbil AirTrans".

The end result is that we will be there to pick up the pieces, but you and your management will have squandered your chance to be a part of a successful airline, all because of this stupid pre-conceived notion that you are somehow "better" than AirTran. Better at what? Better at losing money, that's what. Face it- the market has spoken. Price is king. We may not like it, but this is a business, not a charity.

Maybe once you're unemployed, you'll actually take a look at our contract. I'd love to see the look on your face when you realize that you would have had an improvement in pretty much every category across the board- pay, rigs, work rules, etc. . . . and that's before our Contract 2005 improvements are done.

Have a nice life, Chuckie Boy, somewhere else.

 

[runwayjockey]

Chuck may be a putz, but you take the cake.

Absolutely Disgusting!

Chuckles, obviously your views are shared by your management, and that's the reason that, in another 12 months, you and your "Cookie Palace" managers can all sit over at the Dew Drop Inn on Howell Ave and cry into your Old Styles about what a great airline you had, and how those "bottom feeders" took over "your" airplanes and then put sand in your vaseline. After reading your stinking diatribes on this board for the past year, I won't feel sorry for you at all.

Our management has tried to work a deal with your management for a while, but they'd rather keep hoping and praying for a miracle than make a deal wid "dat ol' debbil AirTrans".

The end result is that we will be there to pick up the pieces, but you and your management will have squandered your chance to be a part of a successful airline, all because of this stupid pre-conceived notion that you are somehow "better" than AirTran. Better at what? Better at losing money, that's what. Face it- the market has spoken. Price is king. We may not like it, but this is a business, not a charity.

Maybe once you're unemployed, you'll actually take a look at our contract. I'd love to see the look on your face when you realize that you would have had an improvement in pretty much every category across the board- pay, rigs, work rules, etc. . . . and that's before our Contract 2005 improvements are done.

Have a nice life, Chuckie Boy, somewhere else.

 

[Ty Webb]

Yawn . . . . That post was directed at Chuck, not the Midex pilot group.

I'll bet he flys every trip with a different FO but can't figure out why.

 

[Chuck Yogourt]

Yawn . . . . That post was directed at Chuck, not the Midex pilot group.

I'll bet he flys every trip with a different FO but can't figure out why.

Actually, I don't have a problem with anyone I fly with but thanks for caring. I am glad to know you are a finacial brain and can tell the Midwest people what we don't see. But before you do that, you might want to ask why your airline lost money this quarter also. Until then, take a hike your freaking maggot.