Midway Airlines in trouble, who's next?
#1
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Midway Airlines in trouble, who's next?
Trying not to take it personally, but I had tickets from RDU to Rochester for Thursday morning, and Midway's suspending its service there and to many other places as of midnight Wednesday night. Also slashing its workforce and fleet of planes.
American abandoned its RDU hub several years ago and let Midway move in. American is now coming back on the very routes it turned over to Midway, and at the same time has terminated its agreement to accept frequent flyer miles from Midway. (But American isn't predatory, no.......)
Midway was a nice airline, gambled on lots of regional jets, expanded just as the economy began to shrink, and -- in my opinion and experience as a frequent passenger -- abandoned good passenger relations in favor of cheap and overburdened labor and sheer volume.
The analysts will say Midway just overextended itself at exactly the wrong time. I agree, but I also have to wonder if it might have made a difference if they'd preserved their original reputation for exceptional customer care on the routes they already had.
Treatment this time was typical: According to the agent, they knew they were canceling my flights as of last Thursday. They called me at 5:30pm last (Monday) night to tell me and offer to rebook on already full flights of other carriers. It will take "2 billing cycles" before I get my refund, and based on a bad experience last year, it will take a lot of phone reminders to get it at all.
Cause or effect of bad fiscal health? Who's next?
American abandoned its RDU hub several years ago and let Midway move in. American is now coming back on the very routes it turned over to Midway, and at the same time has terminated its agreement to accept frequent flyer miles from Midway. (But American isn't predatory, no.......)
Midway was a nice airline, gambled on lots of regional jets, expanded just as the economy began to shrink, and -- in my opinion and experience as a frequent passenger -- abandoned good passenger relations in favor of cheap and overburdened labor and sheer volume.
The analysts will say Midway just overextended itself at exactly the wrong time. I agree, but I also have to wonder if it might have made a difference if they'd preserved their original reputation for exceptional customer care on the routes they already had.
Treatment this time was typical: According to the agent, they knew they were canceling my flights as of last Thursday. They called me at 5:30pm last (Monday) night to tell me and offer to rebook on already full flights of other carriers. It will take "2 billing cycles" before I get my refund, and based on a bad experience last year, it will take a lot of phone reminders to get it at all.
Cause or effect of bad fiscal health? Who's next?
#2
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My guess is National or Frontier. Maybe Vanguard, too. All have had some losses recently and don't have the critical mass they really need.
JetBlue and AirTran are making money so they seem safe for now. All of the majors are large enough to weather the storm, although USAirways management sounds fairly ominous about their long-term survivability.
JetBlue and AirTran are making money so they seem safe for now. All of the majors are large enough to weather the storm, although USAirways management sounds fairly ominous about their long-term survivability.
#3
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All the more reason to marvel at one of the most surprising, paradoxical enterprises in America: Midwest Express Airlines.
Head and shoulders above all other US airlines in quality and customer satisfaction (well above SWA, as well, in consumer ratings).
Yet it's been a very profitable airline.
Don't know how they do it.
I'm sure pleased when I get the opportunity to fly with them, though.
All first class seating, real meals on china, warm fresh baked cookies for everyone, alcohol without charge.
One of the mysteries of the travel world.
Head and shoulders above all other US airlines in quality and customer satisfaction (well above SWA, as well, in consumer ratings).
Yet it's been a very profitable airline.
Don't know how they do it.
I'm sure pleased when I get the opportunity to fly with them, though.
All first class seating, real meals on china, warm fresh baked cookies for everyone, alcohol without charge.
One of the mysteries of the travel world.
#4
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Tar heel, Did they call you or contact you to let you know of the change? I'm picking my sister and nephew up next Tuesday at Myrtle Beach airport on a Midway flight which originates in Hartford but stops in RDU. Should I call her and tell her confirm her flight info?
#5
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Just read your post and saw that they did contact you. They didn't just rebook you at the same price? Will you now have to pay a higher fare? Just wondering since sis got such a great deal on Midway if she is going to have to pay more if they rebook. Thanks.
#6
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Two relevant items: see USA TOday today about the cuts or freezes in business travel for 2001-2002 ... certainly bad news for all the airlines. And US Airways is saying they cannot survive alone, and certainly not unless their pilots go along with plans to institute more regional jet service. Isn't this about the time that millions of stay-at-homes show up in airline offices with those W. tax refund checks and start jump-starting the economy? Ciao
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#10
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http://www.cnn.com/2001/TRAVEL/NEWS/...r11/index.html
Midway files for Chapter 11, cuts routes
August 14, 2001 Posted: 12:18 PM EDT (1618 GMT)
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By Thurston Hatcher --- CNN
(CNN) -- Midway Airlines is halting service to nine airports and cutting back flights on many other routes after filing for Chapter 11 bankruptcy protection.
Midway announced Tuesday it will cut its work force by about 700 and eliminate 17 aircraft from its fleet. It attributed the cuts to what it called a "calamitous drop in business traffic," particularly around its hub at Raleigh-Durham, North Carolina. It also cited rapid expansion, lower fares and the high cost of jet fuel.
"Despite economic conditions that have made a portion of our route network unprofitable and unsustainable, we are confident we will return to profitability by reorganizing and reducing our route network to traditionally profitable routes," Midway CEO and President Robert Ferguson said in a statement.
Midway said it had net losses of $15 million between January and June.
Midway has discontinued flights effective immediately to Buffalo and Rochester, New York; Dayton, Ohio; Pittsburgh, Pennsylvania; and Washington Dulles International Airport.
It plans to stop flying to Los Angeles, California on August 19; Birmingham, Alabama on August 20; and Providence, Rhode Island and San Jose, California on August 31.
It also will cut about 27 daily round trips on existing routes at 18 other airports. While eliminating flights to Dulles, Midway will maintain a Washington presence at Reagan National.
"What we're doing is returning to the core of our route structure that has been consistently profitable over time, so I wouldn't anticipate any other changes," Midway marketing director Karen Wing told CNN.
Customers with tickets on the eliminated routes will be booked on other airlines or given refunds, the airline said. Ticket-holders who booked seats through a travel agent need to contact the agent. Those who made them through Midway should call (800) 44-MIDWAY or (919) 595-MDWY.
Travelers to other cities are encouraged to contact Midway or their travel agent to confirm their flight times.
#11
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. . . . . and more information from that CNN article . . .
EXTRA INFORMATION
TICKET REFUNDS
• If you bought a ticket from a travel agent, contact that agent. • If you bought directly from Midway, contact the airline by
>Email: [email protected]
>Fax: 919-468-1193
>US mail:
Midway Airlines
Refund Department
2801 Slater Road, Suite 200
Morrisville, NC 27560
DISCONTINUED ROUTES
• Buffalo, New York
• Rochester, New York
• Dayton, Ohio
• Pittsburgh, Pennsylvania
• Washington (Dulles)
• Los Angeles, California
• Birmingham, Alabama
• Providence, Rhode Island
• San Jose, California
EXTRA INFORMATION
TICKET REFUNDS
• If you bought a ticket from a travel agent, contact that agent. • If you bought directly from Midway, contact the airline by
>Email: [email protected]
>Fax: 919-468-1193
>US mail:
Midway Airlines
Refund Department
2801 Slater Road, Suite 200
Morrisville, NC 27560
DISCONTINUED ROUTES
• Buffalo, New York
• Rochester, New York
• Dayton, Ohio
• Pittsburgh, Pennsylvania
• Washington (Dulles)
• Los Angeles, California
• Birmingham, Alabama
• Providence, Rhode Island
• San Jose, California
#14
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The local news in the Triangle is pretty grim. They have laid off large numbers and have told those workers they will not be paid for any work since the last paycheck, nor will any uncashed paychecks be honored. Doesn't look good for my ever getting that refund.
I'm now seriously regretting agreeing to take a refund (although I couldn't have dealt with the circuitous itinerary they offered on other airlines) and ironically, I reluctantly had accepted an e-ticket, even though I always insisted on a paper ticket before.
My advice to anyone booked on any Midway flight anytime in the future -- get a paper ticket, consider an alternative if possible, and keep up on the day-to-day news. I suspect they'll limp along for a while, but they've obviously got no hesitation to drop an ax with absolutely no warning. They called their workers at 12:34 a.m. to tell them not to report.
I don't see USAir going under but I can easily imagine much curtailed service.
Re:regional jets. One of the reasons given for Midway's failure was its over-adoption of regional jets, which are relatively speaking very expensive to run. Since I hate 'em, I'd much rather see one or two 737 runs a day instead of 4-5 CRJs or Embraers. But that doesn't seem to be the thinking in the industry.
I'm now seriously regretting agreeing to take a refund (although I couldn't have dealt with the circuitous itinerary they offered on other airlines) and ironically, I reluctantly had accepted an e-ticket, even though I always insisted on a paper ticket before.
My advice to anyone booked on any Midway flight anytime in the future -- get a paper ticket, consider an alternative if possible, and keep up on the day-to-day news. I suspect they'll limp along for a while, but they've obviously got no hesitation to drop an ax with absolutely no warning. They called their workers at 12:34 a.m. to tell them not to report.
I don't see USAir going under but I can easily imagine much curtailed service.
Re:regional jets. One of the reasons given for Midway's failure was its over-adoption of regional jets, which are relatively speaking very expensive to run. Since I hate 'em, I'd much rather see one or two 737 runs a day instead of 4-5 CRJs or Embraers. But that doesn't seem to be the thinking in the industry.
#15
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One more good reason to resist electronic tickets. I really resent the surcharges airlines are imposing for paper tickets -- they send out pieces of paper with your "e-ticket" info, so what's the difference to them, except you have nothing to show for the money you've put down for a ticket.
#16
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Tar Heel, I knew a week ago, but of course I didn't know anyone need the info. My wife just flew back to RDU from Rochester last week, and she had heard a few days before that the route was going to end soon. She was worried until she heard it was this week.
#17
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Just a query for you frequent flyers. As expected it is IMPOSSIBLE to get through to anyone at Midway. If you go to their website it still shows the flights from Hartford to MYR that my sister is (unfortunetely) e-ticketed for. The site does not show flights from RDU to Rochester though. Would you take it as a good sign that if the site is allowing me to book a flight for next Tuesday that the flight is still running? I wish they would update their info on it's website since trying to call is a lost cause.
#18
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Based on my experince with Midway when they had "good" times, I would imagine they plan to cut more than they've announced. The last time I was booked on Midway to Atlanta, they called me a few days beforehand and suggested I find a hotel in Atlanta for the day of my return. They'd decided to cancel all Atlanta-DC flights for that Sunday, but they would be happy to fly me back on Monday. They at first even refused to put me on another carrier, insisting they owed me nothing. If they're losing so much money, I'd be worried about how their employees are maintaining their remaining planes. Am I facing this same situation on US Airway later this year ... I've got a bunch of bookings. Ciao
#19
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In theory, Hartford service is continuing. And it's not too awful a gamble that if they're going to cut more routes, they won't do it in the next 7 days -- the stock price couldn't take it and, again in theory, since they are under court-supervised reorganization, they should be able to continue to routes they haven't cut.
But my condolences to your sister and you for still having e-tickets and having so much uncertainty. I'd be alert to possible alternative flights on other carriers and keep calling (tomorrow is another day . . . ).
You also can decide to "eat" the cost of the ticket and book otherwise -- my guess is that it's approximately the same cost as trip insurance would be. But I imagine morale at Midway is below the bottom of the well at this point, and I'd be nervous . . .
But my condolences to your sister and you for still having e-tickets and having so much uncertainty. I'd be alert to possible alternative flights on other carriers and keep calling (tomorrow is another day . . . ).
You also can decide to "eat" the cost of the ticket and book otherwise -- my guess is that it's approximately the same cost as trip insurance would be. But I imagine morale at Midway is below the bottom of the well at this point, and I'd be nervous . . .

