Northwest writes off Midwest investment

[NuGuy]

Is it true that as MEH flights are being drawn down they are being replaced simultaneously with additional or new NWA flights?

Heyas F4H,

My guess is that NWA's "return" on their investment will be 30 or so DC-9 replacements.

Even if they never fly in NWA (or DAL) colors, they'll send them to the beer can factory before they'll let Tranny get within a country mile of them.

That's the NWA way...

Nu

 

[eightdriver]

Actually...

Take into account the fact that you hate Midwest and that puts into context what you just said.

AAI buys MEH and there still would be in the same situation: furloughs, MD80's parked, no new and exciting markets, no fast upgrades, yadda yadda yadda. In fact every major airline can say that, but you ignore that.

AA still has 1,979 pilots on the street from 9/11. My
situation could be a lot worse.

Actually...your position is much worse. You have a recall # to an airline that won't exist. At least the AA guys will eventually have somewhere to called back to... 8

 

[CitationLover]

Actually...your position is much worse. You have a recall # to an airline that won't exist. At least the AA guys will eventually have somewhere to called back to... 8

oh boo hoo woe is me. at least i don't live in Georgia (the country).

i am sure the TWA folks who lost seniority and are STILL on the street will be comforted by your thoughts.

if midwest makes it or not, is out of my control. why worry about something beyond your control? it is the most worthless energy you can ever use.

if the cubs win the world series in november (god i hope not) then hell will have frozen over, i will start worrying then.......

 

[IdRtherBsailing]

As a Furloughed MEH pilot I have also written them off. The only stress I have now is hoping that my xbox 360 does not get the red ring of death while I am unemployed. Oh yeah, and I guess finding another job.

 

[eightdriver]

2332 posts.... sounds like you made this website your new flying job CL. 8

 

[FlyWolf]

As a very soon to be furloughed Midwest pilot (for the freaking 2nd time) I also wrote off Midwest, hope to never come back to this outfit.

 

[FlyWolf]

Just for the record, this will be my 3rd furlough. I think I might be breaking some record here pretty soon.

 

[Jetjockey]

Fly Wolf, are you before or after a summer 2000 hire?

 

[CitationLover]

2332 posts.... sounds like you made this website your new flying job CL. 8

Only 9,115 more to go to catch the General......

 

[Propsync]

Take into account the fact that you hate Midwest and that puts into context what you just said.

If that's what you think, fine. You're wrong, but I really don't care, CL. You can't differentiate my thoughts from my feelings.

Just because I'm negative on Midwest doesn't mean I hate them. I have several friends that are getting the axe here. If I 'hated' Midwest, I'd say those guys deserved it. Please don't use hate, it really shows ignorance on your part, CL.

 

[MarineGrunt]

Is it true that as MEH flights are being drawn down they are being replaced simultaneously with additional or new NWA flights?

I may be wrong, but isn't NW supposed to start flying MKE-LAX sometime this month?

 

[FlyWolf]

I think Sept 9th if I am not mistaken.

 

[CEO silly sap]

So is there a get together tomorrow or what?

 

[Ty Webb]

You gotta love how a supposedly "Knowledgeable" airline reporter (I know, I know) would compare a certain month with the previous month, instead of the more logical "same month, previous year". :blush:

Kind of a shame that "experts" don't require some sort of Industry Certification, Knowledge, Training, or even Fact-checking. :erm:

Ty

 

[FlyWolf]

So is there a get together tomorrow or what?

There was, and it was a great success.

 

[~~~^~~~]

NWA is essentially telling its shareholders to not only forget about any return on NWA's $213 million, but that the shareholders should think of the $213 million NWA paid for 47% of Midwest as money that was taken out back and lit on fire. Texas Pacific Group has plenty of cash, but they're not likely going to continue pouring money into Midwest if they can kill it and by doing so further solidify NWA/DL's dominance (read: pricing power) in the upper midwest. The $250 million TPG paid for its controlling share of Midwest might well be off-set by TPG being given a preferred shares-type deal for investing in a merged DL/NW.

Good analysis. In retrospect, they should have saved their money and congratulated AirTran on their acquisition. Having to carry MidEx would have had a serious negative effect on AAI's liquidity. My guess is that 300 million at least would be gone from the 540 million war chest. Even more if this turned out to be "revenue sensitive." (and who knows, AirTran might have been able to make it work, and for Delta's sake they would be focused somewhere other than Atlanta)

Serves NWA/TPG right for acting in an anticompetitive fashion to begin with. I have never understood the type of management thinking that pays real money for a product not coming to market. If the airline industry was regulated by the FTC instead of the DOJ, things like this would not happen and, surprise, the industry would be saved from some of its own dumbest ideas.

Makes you wonder how smart Republic Airlines Holdings is to dump $80 million in? Also makes you wonder why NWA/TPG did not force a friendly BK to gain DIP rights.

If NWA/DAL keeps their hands in the MidEx operation, I expect MidEx to become a quasi~Delta Connection carrier that serves as a code share end run around Delta's scope agreement with their pilots. Like all the other DCI carriers revenues and seat miles will be optimized. Passengers don't care what name is on the side of the airplane (MidEx is a good exception to the rule, certainly) and the DOJ stopped being relevant a decade ago.

Good luck & condolences to anyone getting furloughed. MidEx has an excellent reputation should you decide to move on.