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Midwest: We're Happy AirTran Didn't Purchase Us, Too
By Jay Sorgi
Story Created: Mar 10, 2009
Story Updated: Mar 10, 2009
At an investors conference, AirTran Airways CEO Robert Fornaro took a look back at the long but failed attempt by his company to buy Milwaukee-based Midwest Airlines.
"We're very glad we were unsuccessful with that purchase," Fornaro said at the conference. "The opportunity to expand in Milwaukee will be a very good one for us. We didn't have to buy that company. The opportunity is out there because of the poor economy."
Midwest spokesman Mike Brophy responded on 620WTMJ's "Wisconsin's Morning News" with a similar main point, but for a totally different reason.
"This is the only piece of trash talking I'll do: the feeling's mutual," said Brophy. "We are still the hometown airline. We are proud to be the hometown airline. We're staying close to our customer. We're giving them what they want, more non-stop flights out of Milwaukee than anybody else."
Fornaro also joined "Wisconsin's Morning News" and explained his comments, illustrating points of how its fleet of planes, and it's workforce, has shrunk dramatically.
"When we went back about 18 months ago, we were under the impression that Midwest was a stronger company than it turned out to be," said Fornaro.
"Faced with the run-up on oil prices and, now, a deep recession, I think we would have found AirTran in a deep hole had that transaction gone through.
"Midwest has become a patchwork of commuter airlines. It's not the same company that we looked at. It is substantially smaller. They've shrunk by 40%. Their network is nowhere near as strong.
"When we were looking at Midwest, it was operating about 35 or 36 large airplanes. Today, it's only 9."
Fornaro on Midwest Survival: "If Oil Prices Remain Low..."
Fornaro even gives a caveat for Midwest even surviving these tough economic times, mainly because, in his mind, the type of service they offer can't work under current conditions.
"If oil prices remain low, I think they'll survive," said Fornaro. "They are a much different company than they have been in the past.
"With all the conversation about premium service, you can't really offer premium service on the types of airplanes they're flying today."
According to Brophy, Midwest isn't exactly alone in facing the problems of running an airline in the current economy - especially the recent high oil prices.
"That's just one factor that's going to affect all airlines. All airlines have had their difficulties in terms of the spike in fuel prices.
"When it comes to the recession, obviously, airlines aren't immune to that."
"We took the dramatic action that everybody was familiar with. We did them all at one time, and now I think we're better positioned than a lot of airlines who will have to continue to cut back employees throughout this year.
"We've gone just about as far as we can go to position ourselves for some growth once we get out of this recession."
"We're still here. We're offering a quality product, and that's what counts."
AirTran Claims It Has Higher Quality with Lower Prices
Fornaro, though, believes his airline has higher quality without sacrificing in the customers' pocketbooks.
"We have become the lowest cost producer in the industry, and that's been a goal that we've had for a number of years," said Fornaro.
"At the same time, our quality has risen. Last year, we were the winners of the Air Quality Award (measuring airlines based on five operating characteristics: on-time flights, lost baggage, overbooking, completion factor and complaints). When you put all those factors together, AirTran had the best ratings.
"We were number one in quality, and number one in lowest cost. That's a tough combination to beat."
AirTran's CEO also attempted to tout that it was backing up what it said it would do during the contentious attempt to purchase Midwest.
"We've made a number of claims, and quite frankly, the things that we said held up. We've grown our business. This summer, we're going to have a 50% increase in our capacity. We've brought great fares, and we've done the things that we said we would do.
"At the same time, a lot of the publicity that came 18 months ago is actually serving us well. The customers have heard of us, and quite frankly, they are pleasantly surprised by the service quality that they offer."
Brophy gives congratulations to his airline's competitor, but makes a point about Midwest's long-time standard-bearing service.
"They do it with a lot of fanfare, and good for them," said Brophy.
"I think the profile of our airline, perhaps, is a little more modest, but I think the important thing is 'Do customers appreciate what we're offering?' Even the surveys we do say that our customers prefer our airline vastly over the other competitors here in Milwaukee."
Instead, Brophy thinks AirTran is simply offering sound and fury signifying, in his mind, very little.
"I think that they're really raising their profile. In terms of their service, it's not much more than they offered last year.
In the meantime, Brophy says Midwest isn't exactly a slouch in the price point battle.
"We're price competitive, and competitive in our fares with AirTran and other carriers in Milwaukee. That's why I think we're doing pretty well right now and seeing some pretty strong advanced bookings for March and April. It's not as if they're undercutting us at every corner."
By Jay Sorgi
Story Created: Mar 10, 2009
Story Updated: Mar 10, 2009
At an investors conference, AirTran Airways CEO Robert Fornaro took a look back at the long but failed attempt by his company to buy Milwaukee-based Midwest Airlines.
"We're very glad we were unsuccessful with that purchase," Fornaro said at the conference. "The opportunity to expand in Milwaukee will be a very good one for us. We didn't have to buy that company. The opportunity is out there because of the poor economy."
Midwest spokesman Mike Brophy responded on 620WTMJ's "Wisconsin's Morning News" with a similar main point, but for a totally different reason.
"This is the only piece of trash talking I'll do: the feeling's mutual," said Brophy. "We are still the hometown airline. We are proud to be the hometown airline. We're staying close to our customer. We're giving them what they want, more non-stop flights out of Milwaukee than anybody else."
Fornaro also joined "Wisconsin's Morning News" and explained his comments, illustrating points of how its fleet of planes, and it's workforce, has shrunk dramatically.
"When we went back about 18 months ago, we were under the impression that Midwest was a stronger company than it turned out to be," said Fornaro.
"Faced with the run-up on oil prices and, now, a deep recession, I think we would have found AirTran in a deep hole had that transaction gone through.
"Midwest has become a patchwork of commuter airlines. It's not the same company that we looked at. It is substantially smaller. They've shrunk by 40%. Their network is nowhere near as strong.
"When we were looking at Midwest, it was operating about 35 or 36 large airplanes. Today, it's only 9."
Fornaro on Midwest Survival: "If Oil Prices Remain Low..."
Fornaro even gives a caveat for Midwest even surviving these tough economic times, mainly because, in his mind, the type of service they offer can't work under current conditions.
"If oil prices remain low, I think they'll survive," said Fornaro. "They are a much different company than they have been in the past.
"With all the conversation about premium service, you can't really offer premium service on the types of airplanes they're flying today."
According to Brophy, Midwest isn't exactly alone in facing the problems of running an airline in the current economy - especially the recent high oil prices.
"That's just one factor that's going to affect all airlines. All airlines have had their difficulties in terms of the spike in fuel prices.
"When it comes to the recession, obviously, airlines aren't immune to that."
"We took the dramatic action that everybody was familiar with. We did them all at one time, and now I think we're better positioned than a lot of airlines who will have to continue to cut back employees throughout this year.
"We've gone just about as far as we can go to position ourselves for some growth once we get out of this recession."
"We're still here. We're offering a quality product, and that's what counts."
AirTran Claims It Has Higher Quality with Lower Prices
Fornaro, though, believes his airline has higher quality without sacrificing in the customers' pocketbooks.
"We have become the lowest cost producer in the industry, and that's been a goal that we've had for a number of years," said Fornaro.
"At the same time, our quality has risen. Last year, we were the winners of the Air Quality Award (measuring airlines based on five operating characteristics: on-time flights, lost baggage, overbooking, completion factor and complaints). When you put all those factors together, AirTran had the best ratings.
"We were number one in quality, and number one in lowest cost. That's a tough combination to beat."
AirTran's CEO also attempted to tout that it was backing up what it said it would do during the contentious attempt to purchase Midwest.
"We've made a number of claims, and quite frankly, the things that we said held up. We've grown our business. This summer, we're going to have a 50% increase in our capacity. We've brought great fares, and we've done the things that we said we would do.
"At the same time, a lot of the publicity that came 18 months ago is actually serving us well. The customers have heard of us, and quite frankly, they are pleasantly surprised by the service quality that they offer."
Brophy gives congratulations to his airline's competitor, but makes a point about Midwest's long-time standard-bearing service.
"They do it with a lot of fanfare, and good for them," said Brophy.
"I think the profile of our airline, perhaps, is a little more modest, but I think the important thing is 'Do customers appreciate what we're offering?' Even the surveys we do say that our customers prefer our airline vastly over the other competitors here in Milwaukee."
Instead, Brophy thinks AirTran is simply offering sound and fury signifying, in his mind, very little.
"I think that they're really raising their profile. In terms of their service, it's not much more than they offered last year.
In the meantime, Brophy says Midwest isn't exactly a slouch in the price point battle.
"We're price competitive, and competitive in our fares with AirTran and other carriers in Milwaukee. That's why I think we're doing pretty well right now and seeing some pretty strong advanced bookings for March and April. It's not as if they're undercutting us at every corner."
