Midwest Airlines possible Bankruptcy

Northwest · 07-01-2003, 09:11 AM

Midwest Air. has announced if they cant get their finances in order, and talk with there employees they Will see bankruptcy by the time school starts!

george · 07-01-2003, 09:20 AM

...sorry to hear that.

Northwest · 07-01-2003, 09:30 AM

CHICAGO, June 25 (Reuters) - Midwest Express Holdings Inc. (MEH,Trade), parent of Midwest Airlines, said on Wednesday it has told employees it may have to file for bankruptcy as soon as mid-July if it cannot restructure deals with workers, lenders and other creditors.

Midwest Express, a Milwaukee-based air carrier known for business class seating and food, has been hit hard by the travel downturn following the Sept. 11, 2001, hijack attacks and the drop in business travelers because of a weak economy.

In a July 19 memo to employees that was obtained by Reuters, Midwest Express said it has cut costs by about $7 million per month since fall 2002, but it needs to find more savings to restore profitability.

"While we continue to work for an out-of-court restructuring, we need to be prepared to seek the assistance of the bankruptcy court to complete our work," the memo said.

Shares of Midwest Express fell 27 cents, or 9.9 percent, to $2.45 Wednesday on the New York Stock Exchange.

Midwest Express has sought to renegotiate union contracts and to cut plane lease payments so that it can replace a line of credit that expires on August 30. The replacement of that line of credit is critical to maintaining cash flow.

The restructuring needs to be completed at least six weeks before the line of credit expires to provide enough time to arrange for a new line of credit, the memo said.

A bankruptcy filing would be highly unlikely if Midwest Express restructures its agreements, but not foreclosed.

"If we choose to file Chapter 11, it would not be far off," the memo said. "We have a small window of opportunity to complete the restructuring we began in February."

Midwest Express also needs to have sufficient cash on hand to weather a filing, and its additional costs, and has had more cash flowing out than flowing in for months, the memo said.

The air carrier's cash position has gradually deteriorated, but Midwest Express believes it has sufficient cash to file for bankruptcy and emerge successfully if it chooses that avenue, spokeswoman Carol Skornicka said.

Midwest Express previously announced layoffs, capacity cuts and temporary wage cuts. It said it needs $600,000 per month in wage cuts or work rule changes from union workers to help it avoid bankruptcy. It plans to start low-fare service in weeks.

The air carrier wants to cut payments on nearly 40 older planes, about two-thirds of its fleet, to reflect a decline in value since the attacks. It stopped making payments on the airplanes more than three months ago.

07-01-2003, 09:55 AM

Who can say "Goodbye 717"????

While Air Tran may be about to place another order for the 717, it was initially the large order from Midwest that kept 717 production happening. If Midwest fold and their 717 orders are cancelled, this might throw the product's future in to doubt.

Moose · 07-01-2003, 10:09 AM

Quote:

Originally posted by Eddy Two
Who can say "Goodbye 717"????

While Air Tran may be about to place another order for the 717, it was initially the large order from Midwest that kept 717 production happening. If Midwest fold and their 717 orders are cancelled, this might throw the product's future in to doubt.

I'll buy the 717's. Just have Boeing fly them to me. Thanks.

07-01-2003, 10:14 AM

Quote:

Originally posted by Moose
I'll buy the 717's. Just have Boeing fly them to me. Thanks.

I imagine that even a "we wanna get rid of it quick" 717 would still carry a price tag of about $35 Million..........

Moose · 07-01-2003, 10:15 AM

Cool. Tell them to send 'em. I'm in!!!!!

tdh8192 · 07-01-2003, 11:08 AM

Moose Airways:

All first-class seating.
One beer biotch for every 20 passengers.
Multiple beer brands for maximum passenger enjoyment. Sorry, Eddy, but Bud and Budlite will not be served on this carrier. Deal with it.
All announcements begin and end with "awwooooooo!"
Frequent flyers receive diecast models in lieu of miles. The real 717s have metal wings and so will the models which means only GJ, AC and SMA.
Tucano sucks.
EWR will be the base of operations
Destinations will include only spotter-friendly airports (which leaves out 95% of the US airports ).
Geminigirl, GoingBoeing, Proff. Herpes and several others are permanently banned from this airline.

Make your travel plans today through Moose Airways! Eddy's Travel Agency, exclusive agents.

Moose · 07-01-2003, 11:18 AM

Sweet promo Tom! THANKS!

Midway Spotter · 07-01-2003, 06:29 PM

Quote:

Originally posted by tdh8192
[b][i]Moose Airways: Tucano Sucks

HaHa!!! I love that...you provide great details about this new airline and out of the blue say "Tucano Sucks." lol!

07-01-2003, 09:11 AM	#1
Northwest Senior Collector Join Date: Feb 2002 Posts: 220	Midwest Airlines possible Bankruptcy Midwest Air. has announced if they cant get their finances in order, and talk with there employees they Will see bankruptcy by the time school starts!

07-01-2003, 09:20 AM	#2
george Master Collector Join Date: Dec 1999 Location: IAD-DCA-BWI/MIA/PHX Posts: 759	Shame if it happens.... ...sorry to hear that. __________________ KERRY/Edwards2004 /////////////////////////

07-01-2003, 10:15 AM	#7
Moose Insane Collector Join Date: Aug 2001 Location: North Brunswick, NJ, USA Posts: 1,369	Cool. Tell them to send 'em. I'm in!!!!! __________________ Model Aircraft Manufacturer Body Guard for Hire!

07-01-2003, 11:08 AM	#8
tdh8192 Mmmm... pep'roni pizza Join Date: Apr 2000 Posts: 3,241	Moose Airways: All first-class seating. One beer biotch for every 20 passengers. Multiple beer brands for maximum passenger enjoyment. Sorry, Eddy, but Bud and Budlite will not be served on this carrier. Deal with it. All announcements begin and end with "awwooooooo!" Frequent flyers receive diecast models in lieu of miles. The real 717s have metal wings and so will the models which means only GJ, AC and SMA. Tucano sucks. EWR will be the base of operations Destinations will include only spotter-friendly airports (which leaves out 95% of the US airports ). Geminigirl, GoingBoeing, Proff. Herpes and several others are permanently banned from this airline. Make your travel plans today through Moose Airways! Eddy's Travel Agency, exclusive agents. __________________ - Tom

07-01-2003, 11:18 AM	#9
Moose Insane Collector Join Date: Aug 2001 Location: North Brunswick, NJ, USA Posts: 1,369	Sweet promo Tom! THANKS! __________________ Model Aircraft Manufacturer Body Guard for Hire!

07-01-2003, 09:30 AM	#3
Northwest Senior Collector Join Date: Feb 2002 Posts: 220	CHICAGO, June 25 (Reuters) - Midwest Express Holdings Inc. (MEH,Trade), parent of Midwest Airlines, said on Wednesday it has told employees it may have to file for bankruptcy as soon as mid-July if it cannot restructure deals with workers, lenders and other creditors. Midwest Express, a Milwaukee-based air carrier known for business class seating and food, has been hit hard by the travel downturn following the Sept. 11, 2001, hijack attacks and the drop in business travelers because of a weak economy. In a July 19 memo to employees that was obtained by Reuters, Midwest Express said it has cut costs by about $7 million per month since fall 2002, but it needs to find more savings to restore profitability. "While we continue to work for an out-of-court restructuring, we need to be prepared to seek the assistance of the bankruptcy court to complete our work," the memo said. Shares of Midwest Express fell 27 cents, or 9.9 percent, to $2.45 Wednesday on the New York Stock Exchange. Midwest Express has sought to renegotiate union contracts and to cut plane lease payments so that it can replace a line of credit that expires on August 30. The replacement of that line of credit is critical to maintaining cash flow. The restructuring needs to be completed at least six weeks before the line of credit expires to provide enough time to arrange for a new line of credit, the memo said. A bankruptcy filing would be highly unlikely if Midwest Express restructures its agreements, but not foreclosed. "If we choose to file Chapter 11, it would not be far off," the memo said. "We have a small window of opportunity to complete the restructuring we began in February." Midwest Express also needs to have sufficient cash on hand to weather a filing, and its additional costs, and has had more cash flowing out than flowing in for months, the memo said. The air carrier's cash position has gradually deteriorated, but Midwest Express believes it has sufficient cash to file for bankruptcy and emerge successfully if it chooses that avenue, spokeswoman Carol Skornicka said. Midwest Express previously announced layoffs, capacity cuts and temporary wage cuts. It said it needs $600,000 per month in wage cuts or work rule changes from union workers to help it avoid bankruptcy. It plans to start low-fare service in weeks. The air carrier wants to cut payments on nearly 40 older planes, about two-thirds of its fleet, to reflect a decline in value since the attacks. It stopped making payments on the airplanes more than three months ago.

07-01-2003, 09:55 AM	#4
Eddy Two Guest Posts: n/a	Who can say "Goodbye 717"???? While Air Tran may be about to place another order for the 717, it was initially the large order from Midwest that kept 717 production happening. If Midwest fold and their 717 orders are cancelled, this might throw the product's future in to doubt.

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