|Quoting Mariner (Reply 8):|
Glad to hear that ZW is well in the running.
In the running for - what?
Express service? I thought Midwest did that themselves with Midwest Connect.
Midwest stated in a press release several weeks ago that they would add 50-seat RJ
's to the YX
* system. While they were considering acquiring them for the in-house Skyway operation, they were also put out an RFP to third parties to fly this for them.
I'm not positive they've ruled out flying the 50-seat RJ
's themselves, but it's generally assumed that they will contract with someone else to provide it for several reasons:
--It will be much faster to get 50-seat RJ
's into service by hiring someone like Air Wisconsin, ExpressJet, Mesa, etc, than acquring 50-seaters for Skyway. They can use more RJ
's ASAP. Some FRJ markets can definitely use more seats, and as the last BE1 go those routes will largely be backfilled with FRJ's. And that's just Milwaukee. Kansas City has several potential markets ripe for RJs.
--Start-up costs would be much higher for them to acquire and support a whole new type within Skyway than outsourcing for the lift.
--Midwest's resources for acquring new aircraft are hardly unlimited, and they are probably better of focusing those resources on M80 replacements.
--Outsourcing allows more flexibility than buying, and with the evolving and potentially questionable economics of smaller RJ
's, this might not be the right time to put all their eggs in this basket. If a few years down the road it's clear they really need 25 RJ
's or 5 RJ
's or 0 RJ
's, that easier to do if it is outsourced.
It's believed a decision will come before year-end, perhaps well before year-end. It sounds like AWAC is down to the final round.
I wonder if the other airline here in the final round competing with Air Wisconsin for the 50-seat YX
Rj's is perhaps Skyway? I personally think they're better off outsourcing this, but has this ever really been ruled out?