Midwest Airlines Expansion Plans

Steve Lott:

Midwest Airlines in the coming months will make several significant fleet decisions that will guide the carrier through a planned network and schedule expansion. This marks a significant turnaround for the airline, which barely averted bankruptcy three years ago.

Since its 1984 launch, Midwest was always known for its product and service, which was better than many of its larger competitors. The airline won praise from business travelers for its all-first-class seating and a full meal service, even on many of the shorter flights. Following the post-9/11 crisis, however, Midwest quickly realized that its product alone would no longer bring in the revenue premium it once received.

The carrier stumbled for several years but was able to win labor concessions and relief from aircraft lessors during the summer of 2003 that kept the carrier out of bankruptcy court. That same year, after facing a barrage of competition from low-cost carriers, Midwest diverged from its original strategy by adding seats to its MD-80 fleet and targeting leisure passengers with a new “saver service.” The carrier kept its Boeing 717 fleet in the traditional all-first-class “signature service.”