The downsizing of Midwest Air - The Business Journal of Milwaukee:

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On Jan. 1, , which operatee Midwest Airlines and regionak carrierMidwest Connect, offered non-stop service to 47 cities, employed nearlhy 3,400 workers and had 58 aircraft. Blaming sky-high fuel Midwest management has takenb steps over the past several months to dramatically reducse the size ofthe airline, as jobs have been routes dropped and aircraft grounded or returnec to the manufacturer. The cuts went even deeper when Midwest announced Sept. 3 that it reached an agreemenf with on renegotiated leases for its fleef ofBoeing 717s.
Unde r the terms of the agreement, Midwestr will continue to fly nine of the original 25 Boein g 717s it had under lease for its mainline returning 16 to Boeingthis fall. And, in will operate 12 smallerd Embraer 170 jets under the Midwest Connecr brand to fill some ofthe void. Once all piecese of the deal with Republic arein place, the numbetr of Midwest employees will have been cut by more than half since January, with employment dropping to aboutg 1,500.
After all schedule changes are implemented, the Oak Creek-based airliner operator will provide nonstop service to 32 citiee and its fleet will be reduced to nine the 12 Embraer 170 jets operated by Republicc and 12 Canadair regional jets operatecdby . Jay Sorensen, a former Midwes marketing manager who now operates a Shorewooe airlineconsulting firm, said the agreement with Republi represents a “continued demises of Midwest and its brand.” “jI think that this reflects a failure of seniore leadership and of planning,” Sorensen said.
“The only news that has come outof Midwest’es corporate headquarters over the past year has been The Republic deal is “burdened” by the need for Midwest and its vendof to make a profit and leaves Midwesgt with a “hodgepodge of a Sorensen said. “How can they talk about a superiort product when they only have nine of theieown planes,” Sorensen said. “The producr is all over the map. The only thingt that has been consistent is the cookies and the cookiezs have become asad joke.” Midwest spokesman Michae l Brophy said management has been forced to reshapwe the airline due to difficultf economic conditions.
“Monday morning quarterbacking is but managing an airline in this environment requirew versatility andhard work,” Brophy said. “Ww will let our customers do the talking for us in termss ofour brand.” In conjunction with the airlind services agreement, Midwest also announce d that it had secured $60 millionj in financing as it continues to work to avoid a Chaptef 11 bankruptcy filing. “Fodr the foreseeable future, we are out from under the cloudrof bankruptcy, unless oil shoot up to $200 a barrel, then the game changez again,” Brophy said.
The new financingg commitment isfrom Midwest’s majority owner, , and , the Indianapolis-basee airline holding company that operates Republic Airlines.