Midwest Airlines

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Midwest Airlines
IATA
YX
ICAO
MEP
Callsign
MIDEX
Founded 1984
Hubs General Mitchell International Airport
Secondary hubs Kansas City International Airport
Focus cities Eppley Airfield
Frequent flyer program Midwest Miles
Member lounge Best Care Club
Fleet size 38
Destinations 22
Parent company Midwest Air Group
Company slogan The Best Care In The Air
Headquarters Milwaukee, Wisconsin
Key people Timothy E. Hoeksema
(Chairman / President / CEO)
Website: http://www.midwestairlines.com

Midwest Airlines (formerly Midwest Express) is an American scheduled passenger airline based in Milwaukee, Wisconsin, operating from the city's General Mitchell International Airport. Midwest Airlines is largely known for its Signature Service all business class seating arrangement, which includes leather seats arranged 2-by-2 and fresh-baked chocolate-chip cookies.

Skyway Airlines was a sister airline also owned by TPG Capital's airline holding [1] Midwest Air Group that operated regional service under the name Midwest Connect. Flight operations ceased April 5, 2008, but they will continue providing ground support.

Contents

[edit] History

[edit] K-C Aviation

Midwest Airlines began life in 1948, when Kimberly-Clark began providing air transportation for company executives and engineers between the company's Appleton headquarters and their mills.

In 1969, K-C Aviation was born from this, and was dedicated to the maintenance of corporate aircraft.

[edit] Midwest Express

After the Airline Deregulation Act of 1978, Kimberly-Clark and K-C Aviation decided to form a regular scheduled passenger airline, and out of that initiative, Midwest Express started on June 11, 1984. At the time the airline had two DC-9's and 83 employees.[1]

The airline slowly grew by adding Douglas DC-9 aircraft to its fleet. Eventually, Midwest Express served most major Midwestern and Eastern destinations. Their longtime slogan, The Best Care in the Air, represents their inflight product. For many years, all flights featured 2-by-2 leather seating, ample legroom, and inflight meals and cookies. This made the airline popular with business travelers. In addition, Midwest Express operated a sizable executive charter operation with a specially-configured DC-9.

In the 1990s, Midwest Express began adding McDonnell Douglas MD-80 aircraft to their fleet. The airline experienced steady growth along with continued profitability. Midwest Express also started their own regional subsidiary, Skyway Airlines, The Midwest Express Connection, to provide commuter airline service to small communities in Wisconsin and the surrounding region. Kimberley-Clark relinquished its ownership in two initial public offerings on 22 September 1995 and 8 May 1996.[2]

After fourteen years of profit-making, Midwest Express was affected with serious financial problems after the September 11 terrorist attacks. To return to profitability, the airline made major changes to its product. First, they reconfigured some MD-80 series aircraft into a new 'Saver Service', featuring cloth coach seats in a 2-by-3 arrangement. Saver Service, while decreasing the width of the seats, continues to feature ample legroom. This service is offered from their Milwaukee and Kansas City hubs to leisure destinations such as Florida, Los Angeles, Las Vegas, and Phoenix on McDonnell Douglas MD-80 aircraft. The airline's Signature Service was also affected by the financial difficulties. The signature gourmet meal services, which had been served on china after being cooked on board, were discontinued in 2002.

[edit] Midwest Airlines

A Midwest Connect plane at General Mitchell International Airport
A Midwest Connect plane at General Mitchell International Airport

In 2002, the airline made another major change, shortening its name from Midwest Express to simply Midwest. A major reason for the change was the modern association of 'express' with a regional airline, which Midwest was not. At the same time, Midwest's commuter airline subsidiary changed its name from Skyway Airlines, the Midwest Express Connection, to Midwest Connect. In a move to save money on jet fuel, the airline accelerated the replacement of DC-9 aircraft with the Boeing 717. It was also announced that select MD-80 aircraft would leave the fleet.

In May 2005, Midwest announced a new buy-on-board meal service for customers. The new program is a step up from the previous 'In-flight Cafe' and features chefs and inspiration from the renowned Mader's restaurant. They also bake chocolate chip cookies on the plane and serve them warm.

Midwest has become the longstanding largest operation at Mitchell Airport and serves 21 cities non-stop (serving San Antonio only through Kansas City), while their regional partner Skyway Airlines, operating as Midwest Connect, serves nearly 30 destinations throughout the Central United States. Since the late 1990s, Midwest has built a secondary hub at Kansas City International Airport, where they presently operate nonstop service to 13 cities across the country.

On 23 May 2006, Midwest Airlines accepted one of the last two Boeing 717s delivered in a ceremony with AirTran Airways, who accepted the other 717. With the closure of the assembly line in Long Beach, California, this marked the end of commercial aircraft final assembly in California and the closure of the former Douglas commercial jet assembly facility. Large military jets are still produced in Long Beach, but it is expected to end in a few years when C-17 production ends.

Announced 17 May 2007, Midwest Airlines signed a Memorandum of Understanding with Northwest Airlines to form a codeshare agreement with them. The codeshare agreement will add 250 city pairs and 1,000 new flight options for Midwest Airlines customers. Northwest routes that will include the Midwest Airlines YX code are destinations beyond Northwest's hubs at Detroit, Minneapolis/St. Paul and Memphis throughout the United States and Canada. Midwest will also place its code on Northwest flights from Indianapolis, a Northwest focus city. Additionally, Midwest's code will appear on a number of Northwest-operated flights to Hawaii and Alaska. Routes operated by Midwest Airlines that will carry the NW Northwest code are flights that connect at Midwest's Milwaukee and Kansas City hubs, as well as Omaha -- a Midwest focus city.[3] Northwest will also codeshare on Midwest Airlines-operated flights between Milwaukee and Kansas City to Atlanta, Boston, Hartford, Los Angeles and San Francisco that connect to the Northwest/KLM trans-Atlantic network and trans-Pacific network.

Midwest has won more awards for exceptional service in Condé Nast Traveler magazine than any other U.S. airline.

[edit] Proposed AirTran / Midwest Airlines merger

In December 2006, AirTran Holdings Inc. -- owner of AirTran Airways -- made public that in December 2005 it had approached the Board of Directors of Midwest Air Group -- owner of Midwest Airlines and Midwest Connect -- and had asked the board to negotiate a sale of the company. That AirTran offer in 2005 was rebuffed by Midwest's board, which also rebuffed a second offer in late 2006. In December 2006, AirTran disclosed the rejection of both offers in hopes of bringing shareholder pressure on Midwest's board to reconsider, which the board recommended that shareholders reject. [2]

On August 12, 2007, it was announced that AirTran had lost the bid for Midwest. A private equity group, headed by TPG Capital and including Northwest Airlines, had inquired to purchase Midwest and will turn the airline into a privately funded company. The inclusion of Northwest in the investing parters may lead to anti-trust accusations from the United States Department of Justice, which reviews all airline mergers.[4]

On August 14, 2007, AirTran increased its offer to the equivalent of $16.25 a share, slightly more than the $16 a share from TPG Capital investors group.[5] However, Midwest announced TPG would increase its offer to $17 per share and a definitive agreement had been reached late on August 16, 2007.[6]

On February 1, 2008, Midwest Air Group announced that the US Department of Justice had cleared the acquisition of Midwest by TPG Capital and Northwest. This finalized the acquisition: trading of Midwest Air Group on the American Stock Exchange ceased at the end of the trading day on January 31, 2008, and stockholders in Midwest will receive the agreed-upon $17 per share. This ends the independent existence of Midwest Airlines.

[edit] Future Plans

Long term, Midwest says that it is conducting a strategic review of other significant value-enhancing opportunities -- including replacement of its MD-80 fleet and additional interior reconfiguration of its aircraft. The aircraft being examined for this are the Boeing 737 and the Airbus A320[citation needed].

[edit] Signature and Saver Service Added to All Aircraft

On May 29, 2007, Midwest announced the next phase of the company's strategic plan, which will offer customers the choice of Signature and Saver seating on all flights. The dual-seating option has been available since fall 2007 on flights on the airline's MD-80 aircraft and will be available by mid-2008 on its Boeing 717 fleet. Signature Service features two-across, wide leather seats with additional legroom. Saver Service features two-by-three seating with generous legroom.

Key features of the new seating option on Midwest's longer-distance, leisure-oriented MD-80 aircraft include:

  • 12 wide Signature seats, arranged in three rows of two-by-two, offering exceptional legroom
  • 132 Saver seats offering generous legroom, among the roomiest coach seats in the industry
  • All seats covered in Midwest's trademark brown leather
  • Signature seats available for an incremental fee

Key features of the new seating option on Midwest's Boeing 717 aircraft will include:

  • 40 wide Signature seats, arranged in 10 rows of two-by-two, offering a 36" pitch and providing 2-3 more inches of legroom than current Signature seating
  • 59 Saver seats offering generous legroom, among the roomiest coach seats in the industry
  • All seats covered in Midwest's trademark brown leather
  • More lower-fare seats to popular business markets with strong leisure demand
  • Signature seating automatically provided to passengers traveling on select unrestricted fares. Other passengers will be able to take advantage of Signature seating for an incremental fee

The same onboard amenities and "The best care in the air" service will be provided to all passengers on either aircraft.

According to Midwest, the dual-seating option is expected to enhance long-term shareholder value by increasing revenue while reducing unit costs. In current Saver markets, the company expects to generate additional revenue from the sale of higher-value Signature seats. In current Signature markets, added revenue generation is expected to result from capturing market share currently lost due to lack of capacity in high load factor markets or those that are slot-constrained, like Washington, D.C. Reagan National and New York La Guardia. The added capacity will also provide the seating needed to accommodate passengers connecting from other Midwest Airlines flights, Midwest Connect flights and the new codeshare partnership with Northwest Airlines, as well as additional demand stimulated by the added low-fare Saver seating. Overall, the implementation of seating choices is projected to generate $30-35 million in annualized revenue.

The addition of 11 seats on each of the airline's 25 Boeing 717 aircraft will also reduce the airline's unit costs by increasing capacity 12.5%. Had the new seating configuration on the Boeing 717s been in effect in 2006, Midwest Airlines' cost per available seat mile excluding fuel of 7.22 cents would have been 6.77 cents, a 6.3% improvement.

[edit] Services

[edit] Midwest Miles

Midwest Airlines' frequent flyer program is called Midwest Miles. They maintain one airport lounge, the Best Care Club at their Milwaukee hub in the D Concourse.

While Midwest is not a member of any airline alliance, Midwest Miles may be redeemed in the Northwest Airlines WorldPerks program, and vice versa. As of 2006, Northwest route maps show Midwest as a partner airline as Northwest is pulling its non-hub flights out of Milwaukee. Also, Midwest participates in code sharing with US Airways out of their Kansas City hub. Midwest allows passenger connections with US Airways in Kansas City to smaller communities in Arkansas, Kansas, Missouri, and Nebraska.

Midwest Miles is unusual in that it has links to the Amtrak program. Midwest Miles members may transfer lots of 5,000 miles, up to a maximum of 25,000 miles per year to Amtrak's program. Amtrak points can be used for travel on Amtrak and Continental Airlines.

[edit] Cookies

Screenshot of Savethecookie campaign
Screenshot of Savethecookie campaign

One of the most defining features of the airline are the chocolate chip cookies which are baked on the planes and served near the end of the flights. According to an exhibit on Midwest history at the Mitchell Gallery of Flight at the Mitchell Airport, the airline began serving the cookie after a former employee experimented different taste treats on an empty leg of a charter flight. The former employee is Jay Sorensen, who was a member of the carrier's start-up marketing team.

According to Mr. Sorensen, it was tradition among the flight crews to share snacks with each other on these empty flight segments. This particular charter flight was operated for the Indiana Pacers basketball team. He tested three items: pizza rolls, popcorn, and Pillsbury cookie dough. The pizza rolls tasted as bad in the air as they do on the ground. The hot oil associated with the popcorn created a hazard. The cookies were perfect and filled the cabin with their baked aroma. The cookies were formally added to the menu as an after-dinner treat. These were originally boarded as raw cookie dough in aluminum trays. Over time, the handling associated with this process was streamlined. Partially baked cookies were boarded and heated in the galley ovens.

The cookie is now featured in Midwest advertisements, used in Midwest's "savethecookie" campaign to stop the AirTran takeover, and is served at professional baseball games at Miller Park and Kauffman Stadium, and also basketball and hockey games at Milwaukee's Bradley Center.[7] These famous cookies are available at Sendik's Food Markets in the Milwaukee area and at Hen House Markets around the Kansas City area.[3]

[edit] Destinations

Midwest Airlines currently flies to 22 destinations throughout the United States.

[edit] Fleet

As of May 2008, the Midwest Airlines all-Boeing (including McDonnell-Douglas) fleet includes 38 aircraft:[8]

Midwest Airlines Fleet
Aircraft Total Passengers
(Economy)
Routes Notes
Boeing 717-200 25 88 (88) Domestic Signature service only
McDonnell Douglas MD-81/82 6 139 (12/127) Domestic Converted to 2 class seating
McDonnell Douglas MD-81 3 143 (12/131) Domestic Converted to 2 class seating
McDonnell Douglas MD-88 4 139 (12/127) Domestic Converted to 2 class seating

As of May 2008, the average fleet age of Midwest Airlines was 11.0 years old.[9]

[edit] Codeshare agreements

Midwest Airlines has a codeshare agreement with Northwest Airlines from Indianapolis International Airport to Denver, Las Vegas, Los Angeles, Orlando, San Francisco, Seattle/Tacoma and Tampa, as well as from their Kansas City and Milwaukee hubs to West Coast cities, where connections are available on Northwest flights to Hawaii. Midwest Airlines also has a codeshare agreement with US Airways for service to/from Kansas City International Airport.

[edit] Incidents and accidents

  • On 6 September 1985, Midwest Express Flight 105 crashed upon takeoff from Milwaukee. This is Midwest's first (and, as of 2008, only) fatal accident, when a Douglas DC-9 of the airline crashed while taking off from Milwaukee, bound for Atlanta's Hartsfield International Airport. According to NTSB reports, the crash was caused by improper pilot reaction when the plane's right engine failed due to stress corrosion cracking. The improper flight control inputs caused an uncommanded roll and accelerated stall. The 31 people on board died.
  • On 13 November 2007, a Midwest Connect flight from Milwaukee bound for Dayton was in a near-collision with a United Express jet heading to Chicago from Greensboro while flying over northern Indiana. Air traffic controllers with Chicago Center directed the Midwest flight to begin its descent while travelling head-on towards the United Express CRJ a few thousand feet below. The planes came as close as 1.3 miles apart horizontally and 600 feet vertically. The Midwest Connect Dornier 328JET was just above the United Express aircraft and descending while they were closing in on each other. [4]. An audible TCAS alarm in the Midwest cockpit alerted the pilots of the proximity, allowing them to pull up in time to avert disaster.

[edit] Livery

Closeup of the engine and tail of a Midwest 717, illustrating the updated logo and gold rings on the engine.
Closeup of the engine and tail of a Midwest 717, illustrating the updated logo and gold rings on the engine.

At the beginning of Midwest's life, they flew only DC-9s of the -10 and -30 series. These planes were painted in a dark blue on the upper half, and white on the lower half. The two were separated by two white, a blue, and a red cheatline, which ran up the trailing edge of the tail. The engines were white, and on the tail was a bold 'M' and a script 'E', representing Midwest Express, and the way the titles were printed. This scheme can still be found on one Beech 1900D of Midwest Connect, sans the 'M E' on the tail.[10]

In the early 1990s, the airline started to add DC-9-80, more commonly known as the MD-80 or "Super 80", aircraft to their fleet, initially in the same livery. It wasn't until the mid-90s that they changed the paint scheme. The top half of the aircraft remained blue, but the bottom half was repainted grey, along with the engines, and they were now separated by a gold, white, and red cheatline. The tail logo also took minor changes, adding a circle around the lettering and a gold, white, and red stripe from the circle to the leading edge of the tail. Despite the unchanged lettering on the tail, the titles on the fuselage were changed to all bold letters, rather than the script "Express" titles.[11]

In 2003, Midwest Express Airlines began to create a new identity, as the first Boeing 717's were being delivered, and the DC-9 aircraft were being retired. They started with chopping the "Express" out of their name (and thusly, off of the fuselage), and they designed a new logo which would help point them out as a representative of Milwaukee. The result was a logo that looks much like a wing, with a small 'M' inside of it. However, if the logo is turned on its side, it bears a resemblance to the Milwaukee Art Museum, designed by Santiago Calatrava, which was being constructed at the same time. The Art Museum has risen out as an icon of Milwaukee, and so the new Midwest Airlines felt this would be a good representation. Along with this new identity came a new livery. The bottom of the aircraft remained grey, while the top were repainted in a lighter, deeper blue, with essentially the same gold, white, and red cheatlines separating the two. On the lower half, there was also a blue swoop, starting at the front (looking much like another stripe), getting larger as it goes back, until it covers the whole tail section. The engines on these planes were painted in the same blue color, with 4 gold rings on the port engine, and 3 on the starboard. This was meant to represent the ranking of Captain and First Officer, along with where they sit. An error, however, occurred in the painting of the livery in the first aircraft. Boeing misunderstood the livery, and N902ME was delivered with 4 rings on both engines. The aircraft remains that way today. All other 717s delivered were painted correctly, along with three MD-80s, registered N813ME, N822ME, and N823ME. All other remaining MD-80s have a sort of hybrid livery, combining the lighter blue, light gray engines/belly and stripes of the old Midwest Express livery with the current logo and titling of Midwest Airlines.[12]

[edit] References

[edit] External links