tekelberry
Posts: 1309
Joined: Tue May 13, 2003 6:37 am

Midwest Airlines Buyout?

Sat Jun 14, 2003 3:25 pm

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?

[Edited 2003-06-14 08:27:32]
 
fpdonald
Posts: 413
Joined: Thu Aug 15, 2002 11:01 am

RE: Midwest Airlines Buyout?

Sat Jun 14, 2003 3:47 pm

Read your own post - what would be the benefit in the present economical climate?
 
captcjmac
Posts: 85
Joined: Sat Feb 03, 2001 3:56 pm

RE: Midwest Airlines Buyout?

Sat Jun 14, 2003 4:10 pm

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.

Keep praying for YX to survive and good luck!
 
Capt.Fantastic
Posts: 811
Joined: Thu Aug 12, 1999 4:01 am

RE: Midwest Airlines Buyout?

Sat Jun 14, 2003 6:37 pm

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
Posts: 11056
Joined: Tue May 13, 2003 2:57 am

RE: Midwest Airlines Buyout?

Sat Jun 14, 2003 10:31 pm

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?
You can cut the irony with a knife
 
gr8slvrflt
Posts: 1449
Joined: Wed Jan 30, 2002 10:53 pm

RE: Midwest Airlines Buyout?

Sat Jun 14, 2003 11:08 pm

If anyone is going to buy Midwest, it would be AirTran. AirTran might just wait and take over the remains, however.
I work for Southwest, but the views expressed are my own and do not necessarily represent those of Southwest.
 
rumorboy
Posts: 294
Joined: Sun Aug 25, 2002 1:06 am

RE: Midwest Airlines Buyout?

Sun Jun 15, 2003 12:32 am

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
Posts: 1502
Joined: Tue Feb 12, 2002 8:27 am

RE: Midwest Airlines Buyout?

Sun Jun 15, 2003 1:07 am

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
FL450, M.85