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Midwest Airlines also looking at starting a new low fare carrier.
Question:
They are doomed. First the food, now this.
– Hide quoted text — Show quoted text -> Just wondering what everyone’s thoughts on the new low fare carrier > Midwest Airlines (formerly Midwest Express) is planning on starting. I > got a better fare for an upcoming trip to NYC (DEN-LGA) then I could > have gotten from most other airlines with the exception on Spirt. > Midwest Express Announces Launch of Low-Fare Leisure Airline and other > plans to Position its Operations for the Future > Posted: 2/26/03 > Milwaukee, Wisconsin, February 26, 2003 – Midwest Express Holdings, > Inc. (NYSE: MEH) today announced strategic plans to position its > operations for the future – including the launch of a low-fare airline > focusing on the leisure market; steps to address the decreased > traffic, low revenue and record-high fuel prices challenging the > airline industry; and a recommitment to its premium-service product, > as evidenced by the Friday arrival of the first of 25 new Boeing 717 > aircraft. > The yet-to-be-named airline will complement the airline holding > company’s existing premium (Midwest Airlines) and regional (Midwest > Connect) airlines by offering flights to high-demand leisure > destinations at the lower fares leisure travelers want to pay, > according to Timothy E. Hoeksema, chairman and chief executive > officer. > "Our focus has always been business travelers," said Hoeksema. "But > our customers have told us they would like to see a value-priced, > leisure-oriented product with the great service they are used to > receiving from our award-winning employees. Extensive customer > research and competitive analysis have convinced us this is an > opportune time to expand our product portfolio." > Service is expected to be launched in third quarter 2003 with five > MD-80 aircraft (currently part of the Midwest fleet) that will seat > 143-147 passengers in a three-by-two seating configuration. Pitch – > the space between seats – will average 33 inches, similar to Midwest > Airlines and more than other low-fare carriers. "Cookie Flight" > service – which includes beverages, packaged snacks and baked-onboard > chocolate chip cookies – will be featured in the single-class cabin. > "Adding a low-fare carrier to our existing product portfolio will > allow us to enhance our competitive position by serving a segment of > the market that is growing more rapidly than the business travel > market," explained Hoeksema. "We’ll be able to expand to destinations > that have not been economically viable to serve with our premium > product, and serve some existing destinations more cost efficiently." > Additional details will be announced at a later date. > The company’s strategic plans also include actions to return to > profitability by addressing rapidly deteriorating industry conditions. > According to Hoeksema, the uncertainty about a war in the Middle East > has exacerbated the significant challenges the airline industry has > faced since before September 11. He said unprecedented pressure on > passenger traffic and pricing – particularly in the last several weeks > – led the airline holding company to proactively take wide-ranging > steps to avoid the actions some of its competitors have been forced to > take. > "The threat of war has significantly impacted our industry," Hoeksema > pointed out. "The uncertainty has made people more reluctant to > travel, cutting revenue dramatically. Even more alarming, fuel prices > have quickly risen to record highs." In February 2002, fuel was $0.70 > per gallon, compared with approximately $1.20 in February 2003. This > equates to a $45 million annualized price increase for Midwest > Airlines and Midwest Connect. That increase, Hoeksema said, easily > negates the significant cost savings the two airlines have realized > over the past year. > Among the actions the two airlines are taking to address the industry > challenges: >