Tekelberry From United States of America, joined May 2003, 1459 posts, RR: 4 Posted (11 years 11 months 3 weeks 1 day 3 hours ago) and read 1746 times:
What would be the likelihood of a major buying YX? If so, which one(s) would be most likely to go for it?
Their current fleet would fit into both AA (SP80s & 717s - deja vu w/TWA perhaps?) & NW (if they keep the DC-9-30s around before the hypothetical buyout).
Midwest is loosing tons of money and can't afford to pay for some of their loans. They are on the verge of bankruptcy, IMO. Also, with all the new competition YX is seeing in MKE, they will need to do something about their current situation.
PS - If a major did buy YX, would YX's current FF members get their miles flushed into the buyer's program?
Captcjmac From United States of America, joined Feb 2001, 86 posts, RR: 0
Reply 2, posted (11 years 11 months 3 weeks 1 day 3 hours ago) and read 1704 times:
Very good point Fpdonald. I think the likelihood of a buyout in these economic conditions are virtually zero. Either YX survives or they don't. And if they don't, they will simply go bankrupt and liquidate. No airline is in any condition to buy the other out at this point. The only two who could would be Southwest or JetBlue and neither would have any interest in Midwest whatsoever.
Capt.Fantastic From United States of America, joined Aug 1999, 777 posts, RR: 0
Reply 3, posted (11 years 11 months 3 weeks 1 day ago) and read 1701 times:
Because of its reputation of offering superior coach class service and comfort (except for their "saver service"), would it be an idea for Midwest to venture outside MKE into some more point-to-point markets (other than the few out of OMA and MCI) ... Like MSP-DTW (where NW has a monopoly) or MDW-LAX. Perhaps they could go head-to-head with ATA out of MDW to some Florida and east coast destinations .... Or maybe they could pick up some of scheduled service Sun Country left over in MSP. With the 88-seat 717 it seems they could get some high yield on lucrative markets where some carriers have a monopoly. Any thoughts?
Luv2fly From United States of America, joined May 2003, 12238 posts, RR: 46
Reply 4, posted (11 years 11 months 3 weeks 20 hours ago) and read 1637 times:
IMHO - I think the problem with Midwest has always been there schedule or should I say lack of it. I remember when they first started out as an airline they really did target the Business market and in the beginning on Saturday they were next to no flights offered! Also they offered seasonal service that was popular tho it was only seasonal, a lot of the seasonal flights could have supported a daily flight and possible 2 on the weekend, year round. Also to connect from say CLE your choices were at best limited so I have never been able to try them. Also now that they have had the service cuts what is my incentive?
Rumorboy From United States of America, joined Aug 2002, 356 posts, RR: 1
Reply 6, posted (11 years 11 months 3 weeks 18 hours ago) and read 1569 times:
I agree Airtran may want there 717s especially on the cheap. Airtran got a great deal with the TWA 717 birds, they may do the same IF Midwest goes CH11. The only other thing would be some DCA slots and LGA slots. Everything else that Midwest has can be picked up on pennies on the dollar in CH11.
I believe nobody is in the mood to buy any airline at the moment. A lot of airlines are still trying to get the own house in order. Things are beginning to look at little bit better these days. Loads are picking up and more importantly yields are starting to pick up. But until there is a light at the end o the tunnel so to speak no airline will take a chance yet.
AA717driver From United States of America, joined Feb 2002, 1566 posts, RR: 12
Reply 7, posted (11 years 11 months 3 weeks 18 hours ago) and read 1546 times:
AA/TWA screwed up the airline acquisition game for a long time, IMO. Even though AA would be in lousy financial shape without the TWA deal, the perception and, to a much lesser extent, the reality of it is that this pushed AA closer the edge. (The flip side of that is that if TWA had survived 9/11, AA would be fighting another LCC downstate from ORD and in the Carribean.)
Will the BOD of a healthy airline ever vote to acquire the debt, leases(generally much more expensive leases) and soon-to-be-disgruntled employees of a distressed, asset-poor competitor?
Midwest has really great people who run a great operation but if I were them I wouldn't rely on a savior in the form of a competitor.TC