Midwest divorces SkyWest; more funding from RAH

Midwest: First Virtual Airline?

Originally printed at http://www.todaystmj4.com/news/local/48150067.html
MILWAUKEE - There's a report that Midwest Airlines could become the first "virtual airline."
Midwest Airlines is considering getting rid of the nine Boeing 717's and using Republic Airways planes.
Republic is a company that already flies more than a dozen jets for Midwest and will add even more service for Midwest customers later this year.
If Midwest does so, industry analyst Helane Becker tells the Journal Sentinel that Midwest would become the first "virtual airline."
The paper presumes that Midwest would still have employees at Mitchell and other airports, but Republic would man all the flight crews.
More: Journal Sentinel



Midwest also says it would offer its union flight crews positions on the Republic jets, but only if the unions take major pay concessions that Midwest says are needed for the airline to be competitive. The unions have opposed those pay cuts, which they say would gut their labor contracts.
 
This is not good! I forsee Midwest getting rid of most of their support employees. Don't need dispatchers if you don't have planes! Don't need crew schedulers/planners if there are no crews! I'm sure they'll cut their ramp and gate agent too and let Republic fill those vacancies with their employees who are paid far less than Midwest employees. This is not good. I see Republic buying the remains of Midwest from TPG and Delta and becoming a major player with regional rates.:rolleyes:
 
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