Midway Liquidation

[AOG-N-IT]

Take note people !!

10 Million dollars from the ATSB.
8.6 Million dollars from U
A proposed 3rd round of concessions being sought.

This company is going Chapter 7...and it all boils down to not having a plan to begin with.

This differs very little from our situation..the only difference is the size of the operations and number of employee's affected.

I hope we are at least going to get the gates they had for our investment of almost 9 million dollars.

BTW...chaulk this up as yet another failed venture that the "Dream Team" as made a mistake at...or failed to calculate accurately.

 

[AtlanticBeach]

Who owns the aircraft?

 

[USA320Pilot]

AOG:

I believe US Airways' Midway investment was collateralized with protections that included DCA and LGA slots. US Airways had its investment protected, just like David Bronner did with its DIP financing to US Airways.

Moreover, I suspect Dave Siegel no longer desired to have Midway operate as a US Airways Express carrier and may use Mesa, PSA, TSA, Chautauqua, or even Atlantic Coast assets to operate the former service provided by Midway.

Therefore, I expect an announcement on replacement service shortly, with over 200 RJs arriving in the network during the next three years.

This whole situation is suspect because the company would not divulge the so called "unidentified investor". Why the secret, unless there is an ulterior motive? In my opinion, Siegel had other plans for the service flown by Midway and that's why US Airways' bankruptcy counsel Jack Butler made his comments today in court.

Regards,

Chip

 

[AOG-N-IT]

Chip ,
I have always understood that our funding was based on their gate positions in LGA and DCA...but this is more of a blocking action as opposed to an actual chance to benefit from expanse.

When I say blocking action...I mean it only prevented someone else from obtaining those gate positions in our major markets of DCA and LGA...so basically we have remained status quo if the flying is turned over to our regional affliates in Midways absence.

I see this as a tactical move and investment...where we are in dire need of strategic moves. LGA and DCA fall somewhat into the glut of seats arena that you have spoken of countless times.

The was a block/check...not a dynamic move to start getting excited over or start patting backs about.

 

[phllax]

So what's to be with their fleet? Is there any way for them to go to PSA so they can get a jump on their new RJ operation. We all know that Mesa's Orenstein will make a play for them too.

 

[Ch. 12]

Midway to be Liquidated

 

[the turtle]

So what's to be with their fleet? Is there any way for them to go to PSA so they can get a jump on their new RJ operation. We all know that Mesa's Orenstein will make a play for them too.

We all know PSA is hungry to get in the RJ game. If you want these RJ's, my bet is Mesa would be more than happy to let you have them. Mesa has considerable experience with at least two of the seven that were in service (they were wet-leased in the intial Mesa-Frontier codeshare...Mesa had the oppurtunity to purchase both outright but the planes were/are a P.O.S., and were returned at the soonest possible time), plus, Mesa DCA maintenece has worked on the remaining fleet and would just as well wash their hands of them.

Having said that they're probably on their way to PHX as we speak!!!

PSA should cut their teeth first on new eqiuptment first, IMHO.

 

[mrf777]

I wonder who will be next?...US Airways?...United?

 

[dashflyer]

The RJ's are parked in Kinston, NC for now according to an earlier newspaper article.

Piedmont has been told they are going to pick up some of the flying that Midway was doing in the interim. Which should make for more interesting life considering Piedmont is returning airplanes to the lessor and a lot of people are leaving.

 

[B737driver]

Let it be said..We (Midway) never killed a passenger...although we scared a few

 

[speedlever]

I always wondered if the mystery investor was actually Mesa.

???

 

[Ch. 12]

I always wondered if the mystery investor was actually Mesa.

???

I think that Midway wondered the same thing. They were on a wave and trying to ride it as long as they could. I give them much credit for fooling the courts for 26 1/2 months without ever showing any true attempt to submit a reorg business plan.

 

[airdog]

I seriously doubt there was ever an investor; kind of like Mike Conway and the "mystery" investor that was always just around the corner waiting to save National Airlines. Ferguson should now join Conway, Beauvais and Lorenzo as people permanently banned from starting or managing airlines. Best of luck to all the lied to and fleeced employees.

 

[Ch. 12]

I always wondered if the mystery investor was actually Mesa.

???

I think that Midway wondered the same thing. They were on a wave and trying to ride it as long as they could. I give them much credit for fooling the courts for 26 1/2 months without ever showing any true attempt to submit a reorg business plan.

Speedlever,

Sorry...even though your post was short, I still misread it as "wondered WHO the mystery investor actually was".

I doubt Mesa and I doubt anybody. JI's "mystery investor" had less of a chance of being real than the "competing investor" in the AMR-TW deal that turned out to be a fraud.

 

[RDU Jetblast]

The lame horse is finally put down. My best wishes for everyone who lost a job in finding a newer and better one quickly.