Skywest to buy Midwest

[WalterSobchak]

You falmers...

 

[viper548]

Give it a couple of weeks but you heard it here first. And yes we will fly them for 50 seat pay. LOL

I think if skywest buys midwest, they will keep the companys seperate. Where's Ron Reber going? I've got my money on Midwest or ASA

 

[XPOO]

The bigger question is, will it be called MidSkyWest or SkyMidwest?

 

[WRENCH]

The bigger question is, will it be called MidSkyWest or SkyMidwest?

Mid-AS-West? That's the direction it is taking.....

 

[Erlanger]

From the Midwest Air Group, Annual Report filing with the SEC recently:

Midwest and SkyWest acknowledge that, in conjunction with the negotiation of this Agreement, they and their respective Affiliates have been engaged in discussions regarding a potential investment by SkyWest or one of its Affiliates in certain equity securities of Midwest Air Group, Inc., the parent company of Midwest. As of the date of execution of this Agreement, the final terms of the Equity Investment have not been finalized. SkyWest covenants and agrees that, if so requested by Midwest, it, or one of its Affiliates acceptable to Midwest, shall make the Equity Investment.

Hmmm, what does this mean?

 

[MarineGrunt]

Things to ponder:
1) Why did SkyWest get the MidEx flying out of the blue? Why not Xjet or AirWis?
2) Where is Reber going?
3) I read in another most that the MEC at Midwest "suddenly changed their mind from being neutral to now backing Midwests management."
4) Midwest management would probably love it to happen since they would probably be operated as a separate company under SkyWest Inc. and they would keep their jobs (plus not have to worry about hositle takeover).

I still think it's unlikely, but it would probably make sense....

 

[SkyW120]

SkyWest has close to $500 million in cash, Midwest has $148 million....just a guess, but SkyWest might be helping to finance Midwest's "strategic" expansion in exchange for regional growth? Sort of like a AirWis/US Air deal.

Things to ponder:
1) Why did SkyWest get the MidEx flying out of the blue? Why not Xjet or AirWis?
2) Where is Reber going?
3) I read in another most that the MEC at Midwest "suddenly changed their mind from being neutral to now backing Midwests management."
4) Midwest management would probably love it to happen since they would probably be operated as a separate company under SkyWest Inc. and they would keep their jobs (plus not have to worry about hositle takeover).

I still think it's unlikely, but it would probably make sense....

 

[DX Rick]

I just turned down an interview for Air Mid......does this mean I just passed up my chance of getting at SkyWest???

 

[MarineGrunt]

I just turned down an interview for Air Mid......does this mean I just passed up my chance of getting at SkyWest???

Air Midwest and Midwest Airlines are two different animals.

 

[fam62c]

Look Out!

I just hope that Skywest (and I'm sure they are) is smart enough to not invest money in Midwest without some degree of control over the corporation. Skywest has a far better history than Midwest of running a successful, profitable, growth oriented airline. Personally, if I were going to invest in an airline I would invest in Skywest way before Midwest. The people at Midwest are so focused on cookies, leather seats and winning travel awards that they forgot about things like fleet planning, the employees and a rational growth strategy. These people are complete zombies when it comes to anything other than customer service or brand image. It's a good thing to take care of the customer but not at the expense of ignoring everything else. Hell, Midwest won't even invest money in their own growth plan; that's why they needed to subcontract with Skywest in the first place. They subcontract 15-25 planes while they get 2 MD-80's to replace the ones they got rid of and shrink Skyway down to nothing. They won't invest their own money in a new fleet for Skyway or Midwest.

If you look at Skyway, their wholly-owned regional operation you will see firsthand how these people run a company. They paid so little attention to Skyway that the company is imploding and flights are being cancelled as employees leave faster than they can be replaced. No matter how bad things get nobody in management ever gets booted; the company has infinite patience with managers who fail to produce results. Skyway would be way better off with people from Skywest running the place. With any luck this "equity investment" involves Skywest taking over Skyway and getting things under control before the airline goes beyond the point of being salvaged, if it isn't already there.