Midwest Airlines to eliminate its entire fleet of MD-80 aircraft

Midwest Airlines, based in Milwaukee, Wisconsin, the United States, is grounding its entire fleet of 12 MD-80 aircraft, which account for about  one-third of its fleet, and laying off employees as part of its restructuring plans. The airline is resorting to these drastic measures in the face of soaring costs of aviation fuel. Now, Midwest joins many other carriers across the world that are cutting capacity, retiring planes and laying of employees in a desperate bid to cope with record fuel prices.

Midwest Airlines operates 9 of the MD-80s for commercial passenger service and 3 for charter operations. Once those aircraft are removed, the airline will operate with 25 Boeing 717 planes.

At present, Midwest has 25 departures daily from Kansas City. Midwest Airlines’ regional carrier, Midwest Connect, has 6 departures daily.

Midwest was using MD-80 aircraft mainly for long-haul flights to the United States’ West Coast such as Los Angeles, Seattle and San Francisco.

Midwest Airlines – formerly Midwest Express – has its main hub at General Mitchell International Airport in Milwaukee, Wisconsin. The airline, having its second hub at Kansas City, is also the second-busiest carrier at Kansas City International Airport. Midwest is reputed for its all-business class seating arrangement, which includes leather seats arranged 2-by-2 and fresh-baked chocolate-chip cookies.

Michael Brophy, a spokesman for Midwest Airlines, was quoted by the Milwaukee Journal Sentinel as saying: “Midwest Airlines will stop flying about a dozen of the less-efficient MD-80 planes in its effort to counter skyrocketing fuel costs. The number of affected employees, which would include pilots, has yet to be determined.”

The airline, according to the spokesman, is yet to decide on eliminating/reducing the frequency of the long-haul destinations such as Los Angeles, Seattle and San Francisco. Midwest, he added, has the option of serving those cities with the other airplanes in its fleet, the Boeing 717s, from its Kansas City hub.

Earlier in June 2008, Midwest Airlines, which is owned by investment group TPG Capital and Northwest Airlines Corporation, had announced that it had hired Seabury Group, an aviation consultant, to assist with a restructuring plan.

Midwest had recently said that its business plan for 2008 assumed that it would make profits provided the price of oil remained below $115 a barrel.

The restructuring plan, according to a senior official of the company, would “put Midwest Airlines in a position to be profitable with oil at $135 a barrel” and that “those changes will allow Midwest to survive.”