I certainly respect the right of the Midwest Airlines pilots and their union to hold a rally. I respect their right to strike or otherwise express their displeasure with Midwest Airlines.
But I have to ask… To what end is this being done?
Like every other U.S. based airline, Midwest Airlines is in financial trouble. The airline is near bankruptcy, and they’re doing everything they can to cut costs and stay alive. Sadly, the changes have included cutting flights and laying off tons of employees. The cuts have been so drastic that some wonder if it even makes any sense to keep this business up and running.
Included in the cuts are the elimination of large, fuel-guzzling airplanes. That means fewer pilots. Seating is being reconfigured to offer fewer of the signature wide seats, and generate more revenue per flight.
Also part of the restructuring is a deal with Republic Airways Holdings to lease 12 jets beginning October 1. The jets will be flown and maintained by Republic employees for at least the first year, which also means fewer Midwest pilots are needed. Republic sweetened the deal by giving Midwest a loan, and the company was in dire need of cash, so the deal was attractive.
By taking the large planes out of service and doing a partial replacement with the jets from Republic, 125 pilots and 120 flight attendants are losing their jobs. All told, Midwest’s employees have been trimmed by 45% since the beginning of the year. The Republic jets could eventually be staffed with Midwest employees, but no promises are being made.
In addition to all of this, Midwest wants the pilots to take wage cuts of between 45% and 65%. I don’t blame the pilots and their union for fighting this wage cut and the layoffs, but what’s the alternative? If Midwest can’t create a financial situation in which they at least break even, they go out of business. I realize that pilots are being expected to go from salaries in the $100,000 range, down to $30,000 to $40,000. Who wants to do that? No one. But what’s the alternative from the standpoint of the company?
So what is going to be achieved by rallying and making negative comments about the company? Nothing, as I see it. I still respect the pilots’ rights to do it. I just don’t think that it’s going to accomplish anything. The business model of U.S. airlines is no longer viable.
This not about cost cuts to save an airline, its about revence and union busting from blood thirsty management.
Since you seem to know so much about this airline allow me to get some more numbers to you because you only seem to discuss very little of the true story.
First of all those 50% paycuts would give the airline 5m in savings a year and management has paid so far 16m to their attorneys to achieve it. Does this make any sence if its actually going to help the company survive? It does serve the purpose of union busting though.
How about the bad management decissions in recent months that has cost tens of millions, but nobody seems to care?
Let me see, I believe it would be the third or fourth time Midwest is changing the seating in a very short time at a crazy cost…money lost.
How about those leased Dorniers from Skyway that are still paying but not flying? More money lost.
How about those hangars leased but never used, again more money down the drain.
Does anybody really think that half of the pilots salaries would really make a difference? Or what bussiness model do you follow that employees must pay for management’s failures.
The big joke among pilots the past year was that management would really be happy if they could have an airline with no pilots and no airplanes. Well its no joke anymore, its actually happening.
And if you think that we spent twenty years in this airline to get 35k a year must be jocking. Yes its a tough bussiness and if are unable to manage it you should get out even if have to shutt it down. Because believe me, 35k a year you do me no favors keeping me around. I can get that elsewhere.
Either way, the day you actually cut my salary down to 35k is the day after 20 years that you receive my resignation too. You can have those 20 year old kids from Republic flying your passengers around, I am not available
While I’m often ambivalent about unions, I’m very much a critic of airlines’ management. Thus, I think they need to recieve criticism from all quarters, whether it’s Wall Street or the unions. Like Tracy said, the airline is screwed no matter what, but that doesn’t mean that disapproval shouldn’t be directed at them. Quite the opposite.
Regardless, I’ve got my own post on the topic:
http://businessopinions.blogspot.com/2008/09/midwest-airline-pilots-mad-as-hell-not.html
While I feel the pain for the pilots, and I am a private pilot, You have to understand the problem was not selling the airline to AirTran. You have to understand the onlt 2 airlines fly 717’s. AirTran and Jet Blue. The problem is Tim sold the company to the wrong group….. Today Tim is not in charge, as he is only a puppet for TPC. They are the ones who are making the decisions. Northwest only got involved to keep AirTran out. Guess that did not happen. I bet AirTran will get a pretty good lease deal on the jet’s that go back to Boeing and don’t be shocked to see the planes only leave to get repainted and back at MKE in green paint. The big question is what is Delta going to do with Midwest?
Forget about Tim, what is TPC and Delta going to do with Midwest. It almost looks like a feeder airline for Delta is the future.
Thanks guys for the interesting comments. This is definitely a losing situation all the way around for a lot of people. I believe that Midwest was a very good airline, treating its customers very well when none of the others do. But it seems they may not exist much longer. Sad.
Jim,
A correction. You mention that AirTran and JetBlue operate the Boeing 717. JetBlue does not operate Boeing 717s. Your question asking what is Delta going to do with Midwest leaves food for thought. Midwest might indeed become a “Delta Connection” carrier.
Awesome article, I love the 1st one!
Why is everyone so quick to cut the pay of pilots down to nothing just because the airline is failing? They show up to work everyday and do there jobs to the best of their abilities, which by the looks of things is rather good seeing as how Midwest has only had 1 accident that I could find. Now you want to take that pilot and cut his wage by 65% while the CEO is taking home millions, but is failing to properly do his job. If these pilots are not just fighting for their own rights they are fighting for the rights of all the pilots for every company. What will be next do you think because the airline is failing the pilots should start paying to fly the airplane? Where do the concessions stop? This will accomplish principle. This is going to show America that Pilots are no longer going to let failing airlines run their lives into the ground just like they did their companies.
Pilots and Flight Attendents get over it… pick up and move on … as said earlier the business model will be pilots & FA at 1/2 the cost and there will be people standing in lines for the job…. come on your a bus driver and a flying watress… 6 figure income for a flying bus driver??
I think you are all pisssed becuase you won’t have those layovers to booze it up and sleep around with each other anymore…
FredFlyer: Your comments disgust me. You have no idea what flight crews go through. The long hours, sitting on the tarmac, the upset passengers and still keeping a smile on your face to keep people calm, oh and getting home once a week to see your family. That’s why a higher wage would be appreciated.
Anyways, I work for Republic Airlines and though some of us don’t agree with what the company is doing by picking up Midwest flying, I hope there will be not be disrespectful treatment to our employees. Its too bad that this happens to us a lot when we pick up flying for a codeshare and the other company isn’t happy. The airline industry is very cut throat and it seems like everyone is out for themselves. Which is probably why Republic decided to pick up the flying along with giving the company a loan. We just work for the company we don’t make the business decisions.
See what’s happening to Midwest. Help stop the dismantling of a great airline. Tell Tim Hoeksema, TPG, and Northwest you won’t fall prey to their bait and switch tactics.
http://www.DontOutsourceMidwest.com
Flying bus driver? We ‘bus drivers’ go through tremendous training initially as well as every 6 months of our career. We work extremely long hours and are away from our families 4 days a week or more. Yes we chose this career, but do you honestly believe that being away from home with our level of responsibility 96 hours a week is worth only 35K per year? We spend an average of 100K on training alone. How about flying an approach down to minimums with an ice covered runway waiting for us? How about navigating the country through thunderstorms, making sure you keep the fuel to get where you are headed? On top of that, we probably got very little rest because we were behind all day due to airport delays. We probably haven’t eaten all day trying to catch up. This is not because we are drunk and easy. We need to bring back the respect and raise the ticket prices back to where they actually pay for the seat to get there. I imagine that would keep people like you at home on your couch instead of on my airplane complaining, in your pj’s, headed for Disney. What Midwest management is doing is wrong, plain and simple. If you can’t afford to pay your employees but management can still bring home millions, then shut her down.
Oh come on Susie and SkyQueen …. at least 60% of the Crew boozes and sleeps around… several crew members a day would not pass a “blow test” for acohol while waiting to board the first leg of the day…. you are still whinning … I’m sorry with all the technology flying a commercial plane can be learned it’s not a specialized skill as you try and paint it… and FA your food servers….. the crap about being away from home… again go back to the boozing & sleeping around… and not having to carry those family responsibilities while gone… again come on be honest with yourselfs… big shout out to Maggie K. at Midwest no more boozing and sleeping around.. maybe sell Cookies door to door…
Has anyone asked Midwest pilots how many pay increases they received last year? The answer is two. Has anyone asked Midwest pilots how many pay increases they received this year? The answer is two. How many pay increases did any other Midwest employee receive last year? At the most, one. This year? Zero. Instead, most took a decrease.
Maybe if the pilots weren’t so greedy the airlines would be in a better position.
I just seen this and had to reply no matter how old this isH how in the hell do you sh$$bags deserve anything close to 100,000? Really? Overpaid bus drivers are right! A soldier in this great country of ours, nearly does not get paid, close to that and he gives his blood! Quit giving out free family and friends ride. Not home? well maybe if you went home rather then visit other mens families.