Change is in the Air for Midwest Airlines

CRJDriver

Well-Known Member
Change is in the Air for Midwest Airlines

By next summer, passengers flying from Milwaukee's Mitchell International Airport on Midwest Airlines will likely see more nonstop flights and lower fares. These are a few of the changes taking place under the new ownership of Republic Airways Holdings Inc., according to the Milwaukee Journal Sentinel.
Midwest

Many of the passengers will be flying on Regional Jets instead of Boeing 717s. Also, those jets will have fewer of the wide seats that helped Midwest win a loyal following.

Those conclusions are based on information gathered from Republic Chief Executive Officer Bryan Bedford and airline industry observers. Republic is forming its plans for Oak Creek-based Midwest after announcing recently that it's buying Midwest for the bargain-basement price of $31 million. For competitive reasons, Republic doesn't want to announce detailed plans. "Look at what was Midwest's network 12 months ago, and you get a good gauge of where we're headed," Bedford said.

Some flights that were cut last year have been restored, and Midwest now has up to 100 daily departures to 33 cities during its peak summer schedule, said Midwest spokesman Michael Brophy.

Executives at Indianapolis-based Republic will consider restoring any route that is viable, including leisure routes, said company spokesman Carlo Bertolini.

Bedford will likely turn to Frontier Airlines for examples of running profitable routes that compete with low-fare carriers, according to Bob McAdoo, an airline industry analyst with Nashville, Tenn.-based Avondale Partners. Along with buying Midwest, Republic is acquiring Denver-based Frontier for just less than $109 million.

McAdoo said Frontier has competed successfully against low-fare carrier Southwest Airlines, which has a large presence at Denver International Airport.

"The guys running Frontier surprised people with the company's profitability," McAdoo said. "That would give you some hope to do same thing (with Midwest)."

Republic will operate Midwest more efficiently in part by dropping Midwest's nine Boeing 717 jets and replacing them with Republic's Embraer 170 and Embraer 190 jets.
Republic will operate Midwest more efficiently in part by putting expensive mainline Midwest pilots out of a job and nine Boeing 717 jets and replacing them with Republic's Embraer 170 and Embraer 190 jets and underpaid pilots.

Bedford said the Embraer aircraft are more fuel-efficient than the 99-seat Boeing 717s. Also, operating with just one fleet type will reduce training and maintenance costs, Bertolini said.

Each Embraer 190 will include 20 seats that are the wide "signature" seats, Bertolini said. That compares to 40 signature seats available on each of Midwest's current Boeing 717 jets.

Despite switching to aircraft that will have fewer "signature" seats, Bedford said the Embraer 190 will compare favorably on passenger comfort with jets used by competing airlines. The Embraer 190 doesn't have a middle seat, which is attractive to passengers, he said.

"I think we've got the better tool to compete," Bedford said.
"I think we've got the better TOOLS to compete," Bedford said.
 
That should sum it up well for the RAH guys..... We have the TOOLS to run it cheap. He's not talking about the planes, got news for ya.
 
If that was his actual quote, homeboy needs to hire a better publicist because you KNOW that's going to end up on a t-shirt.
 
Thanks for the heads up guys. I was starting to forget that the pilots are to blame for all these problems.
 
Thanks for the heads up guys. I was starting to forget that the pilots are to blame for all these problems.
That's right. Every last one of us is responsible. Just look at all the resumes, no matter the pay, at any company hiring. We are ALL responsible. Thank you for reminding us!!
 
I think the OP added some commentary along the way.

So what you're trying to say is that my "Bill Cosby Speed Reader" courses wrecked my reading comprehension?

After school, punk! ;) :sarcasm:
 
That's right. Every last one of us is responsible. Just look at all the resumes, no matter the pay, at any company hiring. We are ALL responsible. Thank you for reminding us!!

Ill agree with that 100% but other regional pilots singling out other regional pilots is stupid and childish.
 
OK, since hypothetical arguments are abound let's look at another one.

For some reason, these internet arguments tend to operate in a vaccum focusing on only one area, while neglecting other, potentially more important to the bottom line, areas.

I'm not saying a pilot group with lower compensation doesn't have a significant impact on unit costs, but I'm merely pointing out that it is but one of many factors.

I honestly can't see how Midwest could support any network via a 9 aircraft fleet. Domestic lift is such a tight market, and while there is a certain niche of travellers that will pay a premium for the higher quality of service for Midwest, I don't think there is quite enough of a population willing to pay the costs required to float a 9 airplane fleet.

Sure the new Midwest fleet will probably be 9 airplanes, however those aircraft will obviously benefit from being part of a fleet of over 100 of the type, lowering the unit costs for maintaining the machine, which are realized in the CASM figure.

Let's put costs of everything but the aircraft out of the equation. Give the 717 and the 190 pilots and FAs the exact same contract making your unit cost for labor exactly the same. (If you have a hard time imagining it, say it's 2.5 cents/ASM)

And for the sake of the argument we'll put all other operational costs in a zero sum scenario (landing fees, airport fees, and even include fuel cost)

Let's take a look at the equipment costs. There is a reason that airlines that tend to run one fleet type or have several types, but a large fleet of each type, do well. There is a fleet size, below which, it is uneconomical to continue operation since the cost is so high to make it work. In the world of ASMs as a commodity, it's all about the lowest unit cost for equitable work.

The 190 and 717 are roughly the same size, same number of seats and have roughly the same range (IIRC), so you can run the same route structure at the same times (thus also another zero sum similarity).

The 717 is a scarce asset. It is an orphaned fleet, Boeing took a perfectly good airplane and cut it's production life short. The airplane over delivered on it s fuel burn. However, after the Midwest birds go to Mexico, it will leave Hawaiian and AirTran as the operators of the fleet type. I think that will bring the number operating to around 101 airplanes in the US. So the parts will be tougher to come by as the airplane ages. Since there were not that many built, the parts that aren't common to the DC9 will have to be new, and not cannibalized from older airframes. This will increase the costs. Looking at a historical perspective, USAirways and AA both ran the Fokker F100. As the only two operators they shared a common parts inventory. A similar arrangement will probably come around in due time for AirTran and Hawaiian, and if Midwest was still operating the aircraft, the small guy (9 jets) would probably get screwed.

As the E190 is still a well in demand aircraft, the parts availibility will not be an issue. With over 100 of the type in operation RAH can distribute the fixed costs of parts inventory over a wider fleet, thus lowering this unit cost.
 
That's great and makes sense. However, you can't say "they'll benefit from the route structure" and still settle for regional wages. Like it or not, Republic is now a mainline airline. Next contract should reflect that. If it doesn't, let's just say there is gonna be a LOT of disappointment and anymosity.
 
That's great and makes sense. However, you can't say "they'll benefit from the route structure" and still settle for regional wages. Like it or not, Republic is now a mainline airline. Next contract should reflect that. If it doesn't, let's just say there is gonna be a LOT of disappointment and anymosity.

I don't see where I said anything remotely close to that, nor imply that. I think I have repeatedly said that RAH is a mainline and the contract should reflect that.

What I think is important is realizing there are other factors driving the cost argument outside the labor CBAs. That is the entire point. That and with an orphan fleet of 9 jets, even if the pilots worked for free (again hypothetical), I don't see how the airline could have survived. I'd say F9 is a good case for existence at 30ish jets.

Where else I fail to see any good is your threat at the end of the statement. I don't see what that contributed to the discussion. What purpose does that serve?
 
Soooo, will Lakes still run the EAS routes to MKE?

Midwest had a great track record for buying orphans. The Dork and the 717. I'm curious about the configuration of the 190s. They are making 20 of the seats Signature style, right? is that 1x1? 10 rows? I'm assuming it's not 1x2 because it doesn't work with the "20" from the story. The 717 was 10 rows of 2x2 with a total of 99-seats, right? So, what about the 170s? No Signature seats for those? and the 135s :) ?
 
Just a random question -

Do you folks consider what ExpressJet did with their branded over the line? I mean we had a regional jet company operating a 'mainline' carrier for regional pilot wages.
 
The 717 is a scarce asset. It is an orphaned fleet, Boeing took a perfectly good airplane and cut it's production life short.

That's a strawman argument... sorry. It was the same argument that was used at PSA when they took the deal for Jets and got rid of the dorks. And yet, 5 years later there were still plenty of Dorks running around and there was never a parts shortage.
 
I think hal only operates about 15 or so 717's. Not like they have a strong holding of the airplanes. I agree with ethan on this one.
 
And yet, 5 years later there were still plenty of Dorks running around and there was never a parts shortage.

Yes there was a parts shortage on the DoJet. Maybe not while you were in the know, but there eventually was. The argument isn't whether there currently is a parts shortage for the 717. It's about the fleet just being a dead fleet.
 
I think we can stop saying Regional Jet with a scowl, now. RAH will soon be mainline. I'm more concerned about how integration is going to work. Is part of RAH going to become a connect company? Or is RAH going to have a single, connect and mainline, seniority list? If RAH actually prospers and the pilots find a way to get a good contract, RAH could conceivably help reverse the scope trend. You could have 50 seaters flying mainline. As of right now, they will say connect, though.

I don't follow the connect concept anymore. What really is "connect"?
 
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