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Midwest Airlines cuts 40% of workforce
Further adding to the speculation about the future of Midwest Airlines, the embattled airline today announced that it is cutting forty percent of its workforce via furloughs and layoffs. In light of the escalating fuel crisis, this cut follows the announcement that it will be grounding all of its MD-80 aircraft.Sad news for a small airline that is struggling to make its mark in the ultra competitive and expensive market that currently is the airline industry. Will they make it through the oil surge?
Over the Fourth of July weekend my girlfriend flew Midwest through Kansas City and generally had good things to say about the airline. Seats are nice, leather and spacious while food and beverage is not only existent and free but also quite supple. Her main observation? "There are only like ten people on this flight."
If, even over a holiday weekend, you can't fill up your planes, then you either have a serious pricing or a serious consumer confidence problem. Why? Since many people have been hearing rumors about the airline going under, demand for tickets has probably gone down. What's an airline to do to inspire confidence?
Well, you could always promise 100% refunds on your tickets if you liquidate. With so many people booking flights and losing their money on flops like Skybus and Maxjet, I think that the least they deserve is a guarantee that they'll get their money back if you take the plunge.
Reader Comments (Page 1 of 1)
George Ramas Jul 14th 2008 5:24PM
Grant Martin is totally wrong about the new Heathrow airport bagage problems that was once true. A friend of mine who gathers these stats says that Martin is all wrong and most of all the bagage problems have been cleared up for some weeks ago.
I think someone needs to recheck their stats.
George
SV Jul 14th 2008 6:19PM
Hmph. Midwest had a great takeover offer last year from Airtran, and instead the CEO got a hedge fund to take it private, with a cash infusion from (longtime rival) Northwest Airlines.
Now? Well, NWA and Airtran are doing just fine, thanks.. Midwest, not so much.
jnb Jul 16th 2008 11:38AM
northwest didnt buy midwest..... a company called TPG did and northwest owns less then 4% of them so i don't understand how you get that northwest bought midwest. also airtran was planning on laying off all of the midwest employees and bring in their own. they only wanted midwest because they brought too many new planes and had no place to fly them.
Sam W Jul 14th 2008 8:41PM
I still plan on ordering tickets from them soon, but i will for sure put them on my credit card incase they go under. Plus I have vouchers to use up before they do...