JECKEL
God's Own Drunk
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- Nov 27, 2001
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Delta suspends talks with Midwest over 328JET contract
Kerry Ezard, Washington DC (26Oct04, 21:51 GMT, 364 words)
Delta Air Lines has suspended talks with Midwest Air Group about granting Midwest Connect the feeder contract currently operated by Flyi.
Midwest says it is now actively pursuing other similar feeder deals with undisclosed carriers.
During a third quarter earnings conference call with investors today - during which Midwest Air Group reported a consolidated net loss of $13.4 million - chief executive Timothy Hoeksema said discussions with Delta have been “put on hold” as the US major concentrates on “other matters”.
The two airlines had been in talks to grant Midwest Connect a Delta Connection contract following Delta’s announcement that it would terminate its feeder deal with Atlantic Coast Airlines (ACA), now Flyi.
ACA’s Delta Connection contract ends this month.
The deal would have expanded Midwest Connect’s ten-strong fleet of Dornier 328JETs to 42. The aircraft would have been flown from Delta’s regional hub in Cincinnati, Ohio.
Hoeksema says Midwest is “in the process of talking to other airlines about these types of opportunities”. A Midwest spokeswoman, however, adds that “we remain hopeful that we will still be able to consummate a relationship with Delta”.
Delta was not immediately available to comment on what is to become of the regional services when the ACA contract ends.
Separately, Midwest says it will focus on increasing revenues, reducing costs and maintaining a strong cash position going forward. “We are pursuing additional avenues to improve productivity and reduce costs and in 2005 we will do everything we can to put us in a cash neutral, or better, position,” says Hoeksema.
He adds that the airline group will take “a more programmed approach to fuel hedging in the future” and that it will hedge 50% to 75% of its fuel costs. Midwest senior VP and CFO Curt Sawyer says that, although “significant progress was made in reducing cost structures”, this was offset by increased fuel prices, which are 45% higher than they were a year ago.
In the third quarter, Midwest took delivery of its 16th 717 out of a total of 25 on order. Hoeksema says it will take delivery of another 717 in December, followed by one additional aircraft per quarter for the next two years.
Source: Air Transport Intelligence news
Kerry Ezard, Washington DC (26Oct04, 21:51 GMT, 364 words)
Delta Air Lines has suspended talks with Midwest Air Group about granting Midwest Connect the feeder contract currently operated by Flyi.
Midwest says it is now actively pursuing other similar feeder deals with undisclosed carriers.
During a third quarter earnings conference call with investors today - during which Midwest Air Group reported a consolidated net loss of $13.4 million - chief executive Timothy Hoeksema said discussions with Delta have been “put on hold” as the US major concentrates on “other matters”.
The two airlines had been in talks to grant Midwest Connect a Delta Connection contract following Delta’s announcement that it would terminate its feeder deal with Atlantic Coast Airlines (ACA), now Flyi.
ACA’s Delta Connection contract ends this month.
The deal would have expanded Midwest Connect’s ten-strong fleet of Dornier 328JETs to 42. The aircraft would have been flown from Delta’s regional hub in Cincinnati, Ohio.
Hoeksema says Midwest is “in the process of talking to other airlines about these types of opportunities”. A Midwest spokeswoman, however, adds that “we remain hopeful that we will still be able to consummate a relationship with Delta”.
Delta was not immediately available to comment on what is to become of the regional services when the ACA contract ends.
Separately, Midwest says it will focus on increasing revenues, reducing costs and maintaining a strong cash position going forward. “We are pursuing additional avenues to improve productivity and reduce costs and in 2005 we will do everything we can to put us in a cash neutral, or better, position,” says Hoeksema.
He adds that the airline group will take “a more programmed approach to fuel hedging in the future” and that it will hedge 50% to 75% of its fuel costs. Midwest senior VP and CFO Curt Sawyer says that, although “significant progress was made in reducing cost structures”, this was offset by increased fuel prices, which are 45% higher than they were a year ago.
In the third quarter, Midwest took delivery of its 16th 717 out of a total of 25 on order. Hoeksema says it will take delivery of another 717 in December, followed by one additional aircraft per quarter for the next two years.
Source: Air Transport Intelligence news
