More Competition in Milwaukee for Midwest

[Propsync]

while i realize you hate tim and all why not look at FACTS and calm down. your opinions mean nothing without FACTS, considering he is doing just that right now.

FACT is our 717 seats are now sold as coach fares comparing to other airlines coach fares. This pricing structure will continue into the future with a borrowing of whatever pricing structure they use for middle seats in the MD80.

FACT is our MD80 Signature seats are now a $60 override that you pay at the gate, online, or with an agent.

FACT- If you fly a 120 seat airplane with 88 (or 99 eventually, doesn't matter) your yield management program cannot take into effect the lack of 20-30 seats. Price averaging will dictate that by the time you hit a certain price point, those people will choose another airline, given they have other choices. Even if you sell all 88 seats at coach prices, you have already lost revenue. This is a large reason Midwest can't turn an operating profit. If that flight sells out, you have lost revenue twice. Once for not having enough seats, and twice for not being able to fully leverage your pricing structure. You can even say a third if the patrons you did not carry enjoyed the other airline they flew on. The 717's current design load factor starts out at 74.5 percent. At 99 seats, they will start out at 84%. When Midwest reports load factor, it's really a bogus number because they aren't configured correctly to begin with. I will, however mention going to 99 seats is at least a step in the right direction. I would never have thought TH would ever let this change. Even Jim Rankin acknowledged back in 2004 that the lack of seats and increased traffic was really hurting us. This was the first really big screw-up after Sept. 11. The regional jet debacle was bad, but ordering new airplanes with too few seats was a killer.

FACT- Most other airlines sell their 'Signature Seats' (First Class) for much more than a $60 override. More lost revenue. I would figure most airlines base first class as a percentage of coach. Further, it is probably amplified as less seats are available. Again, this is a step in the right direction, but should have been made long ago.

 

[CitationLover]

...This is a large reason Midwest can't turn an operating profit....

uh midwest had an operating profit in 2006.....they haven't declared bankruptcy and dumped pensions on the PBGC like other airlines you consider well managed. i'm willing to bet timmay did a better job running the airline than you could have done and he's done a bad job.

FACT that imitation is the sincerest form of flattery, thank you.

most other airlines didn't differentiate their "coach" seats and they have not been consistently ranked #1 in the domestic rankings. it will take time to increase the price on the signature seats. we're not offering differing service levels like other airlines are doing, free booze is expensive.

 

[PCL_128]

Please don't compare Air Tran to SWA,I think I just threw up in my mouth a little bit.

You're right. Our product is far superior to LUV's.

 

[hyperboy]

ok

I guess LUV being profitable all these year means nothing huh? I have nothing but love for Air Tran believe me but let's be real and honest with ourselves, that's impressive. If anything they are the lil' engine that could..................and so is AAI!

 

[27 driver]

There is no denying LUV's success. Industry leading contract, God knows how many profitable quarters, work group that enjoys their job, etc.

I just hope AAI can pattern thier new contract after LUV'S. Time will tell. At some point management has to give some back.

 

[bladeusa]

FACT: Citationlover is to Midwest what Generalwhats hisname is to Delta.

 

[CitationLover]

FACT: Citationlover is to Midwest what Generalwhats hisname is to Delta.

FACT - that is a hot chick

 

[IdRtherBsailing]

FACT - that is a hot chick

Fact - Chicks dig me, because I rarely wear underwear and when I do it's usually something unusual. But now I know why I have always lost women to guys like you. I mean, it's not just the uniform. It's the stories that you tell. So much fun and imagination.

 

[CitationLover]

Fact - Chicks dig me, because I rarely wear underwear and when I do it's usually something unusual. But now I know why I have always lost women to guys like you. I mean, it's not just the uniform. It's the stories that you tell. So much fun and imagination.

i hope the pants get a thorough cleaning........

 

[Propsync]

uh midwest had an operating profit in 2006.....they haven't declared bankruptcy and dumped pensions on the PBGC like other airlines you consider well managed. i'm willing to bet timmay did a better job running the airline than you could have done and he's done a bad job.

FACT that imitation is the sincerest form of flattery, thank you.

most other airlines didn't differentiate their "coach" seats and they have not been consistently ranked #1 in the domestic rankings. it will take time to increase the price on the signature seats. we're not offering differing service levels like other airlines are doing, free booze is expensive.

Yeah, watch out, a big $500,000 profit. Don't spend it all in one place. I bet that big trend continued for 2007. Here's your homework CL, take the Midwest fleet in 2006, and compare their results to all other airlines. Midwest will be about ten grand a plane. I'm not going to do the work, but let me know how it goes.

Our goose was overcooked when the 2006 report came out. Midwest showed that their fleet could barely turn a profit. At that point, I knew they couldn't make enough money in the 'good times' to weather the next downturn. Coupled with the addition of Skywest and taking the hedge all in the first quarter was the big sign as well. They had to take an accounting profit to keep AT away a bit longer. Second quarter results really got the ball rolling, at that point there was no way ME would survive on its own.

Could I have done better than Tim? Maybe. We'll never know. I would have gone with 319's instead of 717's. 140 seats. I would have put the company really close to ch. 11 as a result, even closer than 2003 was. But I think without the biggest gambles you cannot reap the biggest rewards. Playing it safe got them sold, so what difference would it have made?

Other airlines don't differenciate their coach seats, probably because they're coach seats. American tried that more legroom idea, but I think they had put those seats back in. If I buy a ticket on a website other than Midwest's, do they show a picture of a seat? Do they show awards in the seat?