Midwest-Skywest Agree on RJ Flying Deal...

[MSNFlier]

MILWAUKEE, Wis., Dec 21, 2006 /PRNewswire-FirstCall via COMTEX/ -- Midwest Airlines, Inc. (MEH :
Midwest Express Holdings, Inc. (Wisconsin)
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9:35am 12/21/2006
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MEH11.17, -0.07, -0.6% ) today announced that it has reached agreement with SkyWest Airlines, Inc. to operate 50-seat regional jet service beginning in April 2007. SkyWest will operate a minimum of 15 and up to 25 Canadair Regional Jets for Midwest during the five-year term of the agreement.
Flying as Midwest Connect, the SkyWest jets will allow Midwest to add new destinations, increase frequency on existing routes and upgrade several regional routes to all-jet service. Under the agreement, St. George, Utah- based SkyWest will provide aircraft, flight crews and maintenance services for the 50-seat aircraft. Midwest Airlines will oversee route planning, scheduling, marketing and sales for the new flights.
The aircraft will be painted in the Midwest Connect livery and feature Midwest's brown leather seats, buy-onboard Best Care Cuisine meals, and popular baked-onboard chocolate chip cookies.
Specific routes from Midwest's Milwaukee and Kansas City bases of operation, as well as schedules, will be announced at a later date. Detailed terms of the agreement were not disclosed.
"We chose SkyWest because of their experience, their excellent record of operational performance, and a commitment to customer service that mirrors that of Midwest, explained Scott R. Dickson, Midwest Airlines senior vice president and chief marketing officer. "We're excited to partner with one of the highest quality operators of commuter aircraft to offer greatly expanded travel opportunities to our customers. We're confident this program will be popular with passengers, and successful for both Midwest and SkyWest."
Midwest Airlines' wholly owned subsidiary, Skyway Airlines, also operates under the Midwest Connect brand. Skyway will continue to operate its fleet of 328JET and Beech 1900 aircraft as a vital element of Midwest's route network.
The new regional jet program is an essential component of Midwest's growth plans, according to Dickson. The airline's comprehensive long-term business and strategic plans provide Midwest with a capacity increase of 15% in 2007 and averaging 10% per year over the next three years, as well as significantly greater growth in profitability. The planned expansion will result in an increase of employment of approximately 8% in 2007, not including staffing associated with the new regional jet program. Two additional MD-80 series aircraft and one additional 328JET 32-seat regional jet are also expected to go into revenue service in the first half of 2007.
In response to customer requests, Midwest also announced plans to reconfigure its Saver Service operations -- which feature two-by-three seating on flights to leisure destinations -- to add several rows of the airline's two-by-two Signature Service seating. The new seating option on the MD-80 aircraft is intended to further differentiate Midwest's product in the marketplace, a practice that has served Midwest well over the last 22 years, said Dickson. "Listening to our travelers and offering them choices has earned us an extremely loyal customer base, and made us the successful company we are today." The seating change is planned for later in 2007.

"In 2007, travelers will benefit from Midwest's most aggressive route expansion in recent years," Dickson said. "Both Milwaukee and Kansas City will see exciting enhancements, as we add at least six new destinations and as many as 12 new routes. We'll also continue to upgrade turboprop markets, with four more cities transitioning to all-regional jet service. These plans are a reflection of our ongoing commitment to providing customers with a truly differentiated travel experience at a time when other airlines have commoditized flying."

The announcement comes on the heels of two consecutive profitable quarters for Milwaukee's hometown airline -- which Dickson indicated were the result of well-executed business and strategic plans that increased passenger traffic 23% and revenue 30% in the first nine months of 2006 compared with the first nine months of 2005. Midwest Air Group, the parent company of Midwest Airlines, estimates it will end 2006 with approximately $170 million in cash, up from $138 million at the end of 2005, and analyst consensus projects a profitable fourth quarter and full-year 2006.
Midwest Airlines features jet service throughout the United States, including Milwaukee's most daily nonstop flights and best schedule to major destinations. Catering primarily to business travelers and discerning leisure travelers, the airline earned its reputation as "The best care in the air" by providing passengers with impeccable service and onboard amenities at competitive fares. Skyway Airlines, Inc. -- Midwest's wholly owned subsidiary -- operates as Midwest Connect and offers connections to Midwest Airlines as well as point-to-point service between select markets on regional jet and turboprop aircraft. Together, the airlines offer service to 47 cities. More information is available at http://www.midwestairlines.com.
This document contains forward-looking statements about the results expected under the company's strategic plan and that otherwise may state the company's or management's intentions, hopes, beliefs, expectations or predictions for the future. Words such as "projecting," "expect," "anticipate," "believe," "estimate," "goal," "objective" or similar words are intended to identify forward-looking statements. It is important to note that the company's actual results could differ materially from projected results due to the risk factors described in Item 1A. Risk Factors in the company's "Annual Report on Form 10-K" for the year ended December 31, 2005.

 

[crashpad]

25 RJs'!!!! How many aircraft does Midwest have in mainline?

I can say with certainty we have lost customers to competition which utilizes big planes in select markets. Midwest has truely tried to live up to its' "Best Care In The Air Motto", but they'll fall short if a significant number of their passengers are subjected to the uncomfortable experience of the RJ.
The best hope is the RJs' will be used to grow obscure markets, and not to replace or used as a filler to the mainline markets.

 

[ultrarunner]

I think mainline is running 25 717s and 12 or so MD-80's. I think there was a press release about adding two more MD's mid '07. Midwest did not exercise any of it's 25 717 options. So less than 40 planes.

It would appear their growth will be through the contract-side. I would think the Skywest agreeement would be for larger aircraft at some point, and there is no reason to think contract flying won't be on the routes that make the most sense. Midex in the past has done the same with mainline and Skyway cities. I'd expect the same with the Skywest planes.

 

[TAWS]

MidWest scuttling AirTran's plans?? Perhaps?

Matbe DAL will expedite their awards, making them undesirable also!

 

[RIDETHELIGHTING]

Looks like skyway is getting hosed.

 

[MarineGrunt]

Matbe DAL will expedite their awards, making them undesirable also!

Looks like they've already started...

Delta to Connect Northeast Business Centers with Significant Boston Expansion

Agreement with Big Sky Airlines allows Boston’s leading carrier to improve service for business travelers
BOSTON, Dec. 21, 2006 – Delta Air Lines – the leading carrier at Boston in terms of flights and destinations – this spring will offer business travelers even more choices for nonstop service between Boston’s Logan International Airport and key business markets throughout the Northeast. Delta and Montana-based Big Sky Airlines have signed a memorandum of understanding for Big Sky to operate Delta Connection carrier service beginning in the second quarter of 2007, further solidifying Delta’s position as the carrier of choice for Boston customers.
As part of the agreement, Big Sky initially will fly eight 19-seat Beechcraft 1900D aircraft, featuring stand-up cabins, on short-haul routes from Boston, representing an 18 percent increase in departures. Specific routes and frequencies will be announced later this winter.
“Delta is Boston’s leading carrier, offering more flights to more destinations from Boston than any other airline, and we’re pleased to enhance the travel experience for our business customers in the Northeast through a significant expansion in service, including flights to a number of new Delta destinations from Boston,” said Glen Hauenstein, Delta’s executive vice president of Network and Revenue Management. “In addition to convenient access to the business center and historical sights of Boston, this service provides customers with superior connecting opportunities to nearly 130 flights to more than 40 nonstop destinations Delta and its partners will offer next spring.”
Customers flying the new Delta Connection carrier service operated by Big Sky will enjoy the extensive amenities afforded by Delta’s new Terminal A facility at Logan Airport, including business services, shopping and restaurants. The new terminal boasts state-of-the-art technology to ensure a convenient travel experience for customers, including 32 self-service kiosks, gate information display screens at every gate and two Crown Room Clubs.
“We’re tremendously excited to bring the Big Sky brand east and we’re looking forward to providing our new customers the safe, reliable and customer friendly service we’re known for out west,” said Fred deLeeuw, president – Big Sky Airlines. “We are looking forward to being a part of the Delta Connection program, one of the most well-respected regional partner programs in the industry.”
Today, Delta offers passengers the most flights to the most destinations from Boston compared to any domestic airline. With the December 2006 schedule, Delta and the Delta Connection carriers offer 90 daily departures to 31 nonstop destinations. As a member of the SkyTeam® global alliance, Delta offers Boston customers the ability to fly non-stop to key business and leisure destinations in Europe aboard SkyTeam partners Air France and Alitalia.
In the last year, Delta has added nonstop service to eight new markets from Boston, in addition to expanded service to Baltimore and Nashville. Delta is the No. 1 carrier in seat capacity at Boston and offers customers non-stop access to six Florida cities – Fort Lauderdale, Fort Myers, Jacksonville, Orlando, Tampa and West Palm Beach – in addition to an extensive schedule of flights to Delta’s hubs in Atlanta, Cincinnati and Salt Lake City and transcontinental flights to Los Angeles and Las Vegas.
Big Sky Airlines currently serves 20 cities in Montana, Idaho, Oregon, Washington, Colorado, Wyoming and Illinois. Big Sky Airlines operates as a code sharing and frequent flier program partner with Alaska/Horizon Air, Northwest Airlines and US Airways, which allows customers the convenience of traveling with one ticket, through baggage checking and economical through fares to destinations throughout the world. Big Sky Transportation Co. is a wholly owned subsidiary of MAIR Holdings, Inc. (NASDAQ:MAIR).
Delta Air Lines (Other OTC: DALRQ) offers customers service to more destinations than any global airline with Delta and Delta Connection carrier service to 303 destinations in 52 countries. With more than 50 new international routes added in the last year, Delta is America’s fastest growing international airline and is a leader across the Atlantic with flights to 31 trans-Atlantic destinations. To Latin America and the Caribbean, Delta offers more than 400 weekly flights to 56 destinations. Delta's marketing alliances also allow customers to earn and redeem SkyMiles on more than 14,000 flights offered by SkyTeam and other partners. Delta is a founding member of SkyTeam, a global airline alliance that provides customers with extensive worldwide destinations, flights and services. Including its SkyTeam and worldwide codeshare partners, Delta offers flights to 459 worldwide destinations in 97 countries. Customers can check in for flights, print boarding passes and check flight status at delta.com.

 

[TAWS]

This should get interesting!

 

[ultrarunner]

Looks like skyway is getting hosed.

Economy of scale. MUCH cheaper to farm-out 50/60/70 seat flying. Prly a smart move, but I would conceed that Skyway at some point, may be phased out or scaled way back to EAS flying on the King Airs

 

[Eagle757shark]

Are you kidding me! Is this the great growth plan that Midwest Airlines had in mind. RJ's instead of 737's. When every airline is running away from 50-seat RJ's because they are to costly to operate at fuel being at 60 dollars a barel. WOW! Tell me this isn't their best shot! It will be interesting to see the response of the Shareholders when they see this plan. Especially when a potential better plan is already on the table. This should get very interesting the next couple of weeks! AirTran has offered to grow MKE with jobs and more cities with 717s and 737s not 50-seat RJs. Hmmm...just a thought.

 

[ultrarunner]

OH, I agree...this will all get flushed down the toilet when the two companies finally agree on price.....I'm thinking 18 bucks.