LoneStarMike From United States of America, joined Jul 2000, 3930 posts, RR: 32 Posted (13 years 6 months 3 weeks 2 days 1 hour ago) and read 1427 times:
I just about fell out of my chair when I read this. I thought they were dead and gone.
Midway CEO: Airline May Fly Again MORRISVILLE, N.C. (AP) -
Midway Airlines' chief executive officer said he is confident the bankrupt company will get part of a $15 billion federal bailout and could resume flights by late October.
Robert Ferguson, Midway's president and CEO, said he met with North Carolina congressional leaders this week about whether the airline is entitled to grants and loans from the federal government.
Following discussions with U.S. Sens. Jesse Helms and John Edwards and U.S. Reps. David Price and Bob Etheridge, Ferguson said the company could be entitled to as much as $40 million of the bailout money.
``We are going to fly again and carry passengers and serve the community,´´ Ferguson said.
The Morrisville-based airline expects to get $12 million in grants and $28 million in guaranteed loans, Ferguson said.
The federal government established the bailout to help airlines recover from the Sept. 11 terrorist attacks in Washington and New York.
Ferguson said the company will have to wait until government guidelines on disbursing the money are determined. The Office of Management and Budget has 14 days to set up rules for applying for loans.
Midway filed for Chapter 11 bankruptcy and laid off 700 employees on Aug. 13. The airline ceased all flights and laid off its 1,700 remaining workers a day after the terrorist attacks.
``It´s fair to say we´re hopeful,´´ Ferguson said. ``I was encouraged by congressional delegates´ support.´´
First, he's "confident" and says "We are going to fly again and carry passengers and serve the community," and then he says "We're hopeful". Is there even a remote possibility that this will happen? Or is it just wishful thinking on his part?
Dutchjet From Netherlands, joined Oct 2000, 7864 posts, RR: 56
Reply 1, posted (13 years 6 months 3 weeks 2 days 1 hour ago) and read 1400 times:
Now, this is interesting. The bail out was supposed to be limited to help the airlines get through the difficulties caused by the events of 11 Sept, and was specifically not intended to help airlines with their general financial problems that resulted from the economic down turn or bad business decisions.
Being that Midway had declared bankruptcy before 11 Sept, it is unclear as to whether they are entitled to share in the rescue package. Interesting legal arguements can be made both for and against helping Midway out.
If Midway were to get some help, in what form would they return. I assume the "smaller" version that was operating immediately before their shutdown, but can they afford those brand-new 737-700s and do they need such an aircraft to fly short-haul routes like RDU-LGA and RDU-Florida cities? Would they be better off leasing some used 733s or MD80s, which they could probably get a great deal on under the circumstances, and have lower costs?
Anyone know the status of the Midway fleet, the 73Gs, F100s, and CRJS - I assume that the leasing companies simply parked the aircraft somewhere.
LoneStarMike From United States of America, joined Jul 2000, 3930 posts, RR: 32
Reply 4, posted (13 years 6 months 3 weeks 2 days ago) and read 1373 times:
What about National Airlines? They filed for bankruptcy before September 11, and I thought I had read on another board that they had gotten part of the federal bailout money already. Does anyone know if this is correct? I couldn't find a news story or anything.
B747-337M From , joined Dec 1969, posts, RR:
Reply 5, posted (13 years 6 months 3 weeks 2 days ago) and read 1366 times:
Chapter 11 is technically bankruptcy, but is actually a reorganization of debt.
Both N7 and JI were in Chapter 11 before September 11, but continued to operate so would be entitled to the bailout money. Once they file for Chapter 7 liquidation though, its a done deal and no cash is forthcoming.