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Author Topic: More impacts of the attack
gambit3131
Post Captain
Member # 261

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Midway airlines just ceased all operations and 1700 people out of work.

I wonder if TWA were still on its own, one, could they have survived the recent economic slow down, and two, if TWA could survive this? All flight indefinetly suspended. ??


gambit


Posts: 176 | From: Fort Worth, TX  |  IP: Logged
acvitale
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Member # 59

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Unfortunately Midway will not be coming back. Aircraft are being returned to leasors as we speak.

Good luck to the Midway Airlines employees and passengers whom are now out there.


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Kirkpatrick
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quote:
Originally posted by gambit3131:
I wonder if TWA were still on its own, one, could they have survived the recent economic slow down, and two, if TWA could survive this? All flight indefinetly suspended. ??

We might have survived the slowdown since the bulk of the problem is with business traffic and we managed to lose a good bit of that 10 or 15 years ago. But I doubt if we'd have survived the suspension plus the slowdown.

I'm sure things will be up and running within a couple of days. There's more than airline jobs at stake here; the country needs airlines to operate and I think we all want to get things back to normal as soon as possible. That means mail must move and goods must be delivered. And, grandma needs that visit.


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robw
Fourm Captain
Member # 75

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I am hearing that the industry will suffer tremendous losses for the next year or two. While AA may not be everything to everyone, they will be able survive losses for a few years. TWA, standing alone as it was, probably would not survive this immediate loss of income, the drop in traffic, and the fare sales that are likely to emerge to coax folks back into the airplanes.

Finally, the Middle East situation is unsure and there may be oil distribution disruptions. This could cause an increase in fuel prices.

Rob


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rampguy
Post Captain
Member # 632

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The press release I read stated they were filing chap 11. If they are returning all aircraft (which they stated they were), why do they file chap 11 instead of chap 7? Just wondering.
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TransWorldForever
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I'm relieved to hear everyone on this board seems to be OK. Still can't quite believe/comprehend what's happened...

I'm curious on what the effects of this will be on American Airlines. Their repuation will obviously be hurt by this. Any chance they'll reconsider phasing out the TWA name?

Nick
TransWorldForever

[ 09-13-2001: Message edited by: TransWorldForever ]


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Foster
Post Captain
Member # 3

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Midway Airlines Shuts Down for Good

Midway Airlines Shuts Down for Good, Says Terrorist Attacks
Prompted the Move

By MARGARET LILLARD
Associated Press Writer

RALEIGH, N.C. (AP) -- Midway Airlines was already been riddled with financial problems
and bankruptcy proceedings when terrorists struck the nation this week, dashing any hope
for a recovery at the troubled carrier.

Midway said Wednesday it will go out of business in the midst of the hijackings that led to
crashes at the Pentagon and World Trade Center. The decision sent 1,700 employees to the
unemployment lines, joining the 700 laid off when the airline filed for Chapter 11 bankruptcy
Aug. 13.

``It just became clear as we went through the day yesterday that people weren't booking air
travel,'' Midway spokeswoman Karen Wing said. ``The calls just stopped in the travel
center for reservations and the people who did call wanted a refund because they didn't
want to be on an airplane for a little while.''

The North Carolina-based airline, which had won a bankruptcy judge's permission keep
operating, said last week that business was looking up, with the company borrowing less
than expected in its reorganization effort.

John Bittle, former director of systems support, had worked last weekend putting together
cost-cutting measures to keep Midway's planes in the air.

``We really had a plan to turn it around,'' said Bittle. But, ``After yesterday, there wasn't a
lot of hope.''

Airport spokeswoman Teresa Damiano said officials expect demand for air travel in the
Raleigh area will lead other carriers to pick up many of Midway's former routes -- once
people are comfortable with flying again.

At the time it declared bankruptcy, Midway served 28 destinations across the country with
74 aircraft. It had immediately cut nine destinations and planned to limit service on others.

Wing said workers were sent home immediately from the company's headquarters. About 100 employees will remain for a
couple of weeks to shut down the company, some of them to arrange refunds for ticketholders or book them onto other
airlines.

Midway said it would begin returning aircraft to their lessors and would try to sell other assets to help pay its debts.

``There's still money in the bank at this point. This is more of a future-looking thing,'' Wing said. ``We really need to protect our
employees and pay them their last wages, and do the right thing for our passengers.''

The airline has blamed its financial problems on a sudden fall in business travel and increased competition. The airline also had
purchased new airplanes and expanded its routes.

In its bankruptcy filing, Midway listed assets of $318 million and liabilities of $232 million. The company posted losses of $15
million in 2000 and another $15 million in the first six months of this year.

The judge's order to keep Midway in operation allowed it to borrow as much as $15 million and pay some 700 employees
who had already been laid off. Wing said $7 million of that had been spent as of Wednesday.

Midway had targeted business travelers since moving here from Chicago in 1995 to pick up flights dropped by American
Airlines when it dismantled its hub at the Raleigh airport. But ticket sales plummeted along with the economy.

On the Net:


Posts: 38 | From: Winchester In. USA  |  IP: Logged
JFK Fleet Service
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quote:
Originally posted by TransWorldForever:
Any chance they'll reconsider phasing out the TWA name?

About a snowball's chance in Hades...


Posts: 184 | From: New York City  |  IP: Logged


 
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