No more Skywest flying for Midwest

SPDBRD747400

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Midwest gets additional funding


Midwest Airlines said it has obtained $12 mllion in additional debt financing.
One-half of the funding comes from TPG Capital, the private equity firm that is Midwest's principal owner. The other $6 million comes from Republic Airways, which provided Midwest with funding last year as part of an agreement to operate a dozen regional jets for Midwest.
Based in Milwaukee, Midwest and Republic operate 16 daily flights from KCI to seven cities.
Republic's additional financing also means the Indianapolis-based carrier will provide 12 more regional jets for Midwest's flight schedule. Midwest said it has terminated the agreement with its other regional partner, SkyWest Airlines.
Once the second busiest carrier at KCI, Midwest shrank dramatically last year when soaring fuel prices rocked the airline industry and forced most carriers to cut flights and seats.
 

WalterSobchak

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SKW will be out of the cookie baking business by January 2010.
 
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crj567

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What is the source on this one? I can't find anything on it.
 

AEROSQUADRON69

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Eh, the writing was on the wall for this. Midwest has not been paying the bills.
 

jp222

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What do the OO folks think of this? Will you be able to absorb the flying to avoid furlough?
 

BigLebowski

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and it will be 12 rjs for Republic...man o man the bank is getting smaller and smaller for Republic. Another 6 million $ loan. When that place burns down...maybe Republic will burn with it?


http://www.flightglobal.com/article...dwest-adds-small-aircraft-to-the-current.html
Bold (possibly stupid) move. I think Republic's profit last quarter was all of 1 million. Not to mention, SWA is going into MKE, AirTran is trying to take over MKE...is another "branded" rj operation in a city 60 miles north of Chicago a good idea?

Only time will tell. I'm honestly relieved that SkyW got out of this. This was a long time coming, and a "money pit" for the last 18 months.
 

amcnd

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I think this is a good move by SkyWest... Not quite sure what Republic is thinking!!! Time will tell. (and we won't have to wait long)
 

Flyerdan

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Republic must have a long term win strategy in making this move but I don't see it. Could republic be looking at buying Midwest and starting a pseudo branded operation?
 

Speedtape

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Republic must have a long term win strategy in making this move but I don't see it. Could republic be looking at buying Midwest and starting a pseudo branded operation?
Tap, Tap, Tap! (The nails that they are hammering into their own coffin!)
 

Bako Cap

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The good thing about Republic is that they have their hand in many cookie jars and any one could be closed without much of a disruption to overall operations. Even if they lose money on this deal, it will only bring them inline with most other carriers that are losing money. Of course this all depends upon a positive cash flow, which Republic will have to rely on Midwest to actually pay their bills.
 

Captain Morgan

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There seems to be a lot of haters on here. I can't believe the amount of negativity in this industry. Republic is doing something different here, hanging it out into the wind, a different approach so to speak. I can agree that yes, we need to get better pay and work rules with these airplanes. Yes, we need to figure out what to do with the employees of Midwest, because this is a bushel of sour grapes. But let's be honest with ourselves, this isn't your dad and mum's industry. Everything is changing and we've got to get out of the thought process of, "There should be Legacies, and we should all be making 300k." Sorry boys and girls, I'm sorry to say, I think those days are gone, possibly never to return. So instead of bitching at each other like a bunch of little girls, we need to get our heads together and be supportive and lend each other their union's expertise to make sure things are done fairly. I'm with you in most respects. We need to insure that our futures are intact, but not relaxing and if can at some point, gain more scope protection. I have to say that I am happy that the SWA pilots held on to scope at least.
 
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