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Sun, Nov 02, 2003

Goodbye, Midway

"Midway Surrenders"

ALPA isn't at all happy at the prospect of Midway Airlines moving from Chapter 11 bankruptcy to Chapter 7. That move spells death for Midway, since it includes the liquidation of all assets.

Midway filed court papers in federal bankruptcy court Thursday, converting the long-struggling airline's reorganization effort into a liquidation. The company had filed for bankruptcy protection in August 2001.

"Midway surrenders,'' said Gerald Jeutter Jr., an attorney at a bankruptcy court hearing. 

Judge A. Thomas Small signed the order requiring the company to account for its debts and turn over its assets within 15 days to a court-appointed trustee. The trustee will recommend to the judge which debtors are paid and how much.

Midway CEO Robert Ferguson said the airline's remaining assets total almost $50 million, primarily two jets and spare parts. He said he expected them to be sold within four months.

The airline had 188 employees, including about 85 pilots. Midway, which flew 30 daily round trips, parked all eight aircraft Wednesday night. US Airways customers were detoured to other flights, according to spokesman David Castelveter.

Midway filed bankruptcy in August 2001.  At the time, it listed assets of $318 million and liabilities of $232 million. The company posted losses of $15 million in 2000 and another $15 million in the first six months of 2001. Still, the airline continued flying until Sept. 12, 2001--the day after terrorist attacks in the United States. Then the airline gave 2,400 workers pink slips.

Two months later, Midway was back in the air, thanks to $10 million from Washington's airline bailout program. But in the end, it just wasn't enough.

"We are very disappointed that Judge Small and Midway management did not give our airline more time to put its financial house in order," said Capt. Mark Stewart, Master Executive Council (MEC) Chairman of the Midway pilots' unit. "Management has focused its efforts in recent months in trying to drive down the terms and conditions of its pilot contract when it should have concentrated on making this airline a viable operation.

"Our company already had extremely competitive rates for the aircraft we flew plus a mechanism for establishing reasonable pay scales for any new aircraft types we might have attained. Midway management simply presented no compelling reasons for the changes that it was requesting."

"The pilots of Midway have provided this organization with a huge cost advantage by negotiating two concessionary agreements in the space of one and a half years, which our management readily acknowledged during these bankruptcy proceedings. Unfortunately, our organization could not use this advantage to produce a reorganization plan that worked," said Capt. Stewart.

FMI: www.midwayair.com

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Debugging Information
ColdFusion Server Enterprise 2023,0,16,330828
Template /AnnTicker.cfm
Time Stamp 02-Dec-25 12:12 AM
Locale English (US)
User Agent Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)
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Total Time Avg Time Count Template
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2 ms 2 ms 1 CFC[ C:/inetpub/wwwroot/clients/aero-news.net/fb551/fusebox5/fuseboxApplication.cfc | compileRequest(main.textpost, CFC: fckeditor.fb551.fusebox5.myFusebox) ] from C:/inetpub/wwwroot/clients/aero-news.net/fb551/fusebox5/fuseboxApplication.cfc
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0 ms 0 ms 2 CFC[ C:/inetpub/wwwroot/clients/aero-news.net/fb551/fusebox5/myFusebox.cfc | getMyself() ] from C:/inetpub/wwwroot/clients/aero-news.net/fb551/fusebox5/myFusebox.cfc
0 ms 0 ms 1 CFC[ C:/inetpub/wwwroot/clients/aero-news.net/fb551/fusebox5/myFusebox.cfc | trace(Fusebox, Request completed) ] from C:/inetpub/wwwroot/clients/aero-news.net/fb551/fusebox5/myFusebox.cfc
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