Lord Trefgarne and the Marquis of Headfort form this nonscheduled cargo carrier at Coventry Airport in the fall of 1970. During the first week of October, a Bristol 170 Mk. 32 is purchased from British Air Ferries, Ltd.; christened Viceroy, it begins revenue services on October
19. Among the destinations flown are Cologne and Dusseldorf from Birmingham on behalf of the Ford Motor Company. A second Bristol Freighter is purchased in November.
In the spring of 1971, the company’s Freighter is employed to fly ad hoc produce charters to the British Midlands from Jersey and Guernsey. British Air Ferries, Ltd.’s last two Bristol 170 Mk. 32s are acquired in March; however, only one is placed in service. This City of Edinburgh joins the Viceroy in mounting long-distance charters to the Channel Islands, Germany, Ireland, and the Netherlands.
These services continue into 1972. During July’s national dock strike, the company’s two Bristols are employed to fly produce and other cargoes into Britain from the Continent. C. J. O. Trimble and R. J. Height purchase the carrier in the fall, but during the winter the company encounters financial difficulties and is forced to cease operations on March 1, 1973.
MIDLAND AIR EXPRESS: United States (1931-1932). Midland is established at Kansas City, Missouri, in the summer of 1931 to offer scheduled, multistop passenger flights across 595 miles to Cheyenne, Wyoming, in association with Braniff Airways. Equipped with 2 Lockheed Model 5 Vegas, the carrier inaugurates 4-hour flights on August 1 and is able to maintain service until closing a year later.
MIDLAND AND SCOTTISH AIR FERRIES, LTD.: United Kingdom (1933-1934). Bus company owner John Sword registers this subsidiary on March 10, 1933; a fleet of de Havilland DH 84 Dragons is assembled. Plans are made to offer the first air service to the islands west of Scotland and across the North Channel to Belfast in Ulster. On May 8, the company begins operations by providing an ambulance flight from Islay to Glasgow (Renfrew).
On June 1, thrice-weekly DH 84 flights are initiated from Glasgow (Renfrew)-Islay via Campbeltown; simultaneously, twice-daily Glasgow (Renfrew)-Belfast via Campbeltown flights are also started. Employing a new Avro Ten (license-made Fokker F-VIIb/3m), the company begins thrice-weekly Liverpool-Dublin summer service. The Islay and Dublin frequencies are suspended for the winter on September 30.
Between February 19 and March 2, 1934 and in association with Redditch Garages, Ltd., Liverpool-Birmingham and London (Heston)-Birmingham flights are offered to the British Industries Fair by the company’s Airspeed Ferry. At Glasgow, Prime Minister Ramsay MacDonald christens the fleet’s new Avro 642 Marchioness of Londonderry on April
6. The aircraft is then employed to fly the leader on the first of two new routes opened that day, Glasgow (Renfrew)-London via Liverpool; the second route is London-Belfast via Liverpool.
On April 9, two additional new services are added: London (Rom-ford)-Glasgow (Renfrew) via Birmingham and Liverpool and Liver-pool-Belfast via Isle of Man. The railway barons now claim in court that owner John Sword is in conflict of interest, as his former motor bus operation, Scottish Motor Traction, Ltd., was associated with the railroads. On July 14, Sword, under pressure, relinquishes his London (Stapleford)-Belfast via Liverpool and Isle of Man service, as well as the suspension of the Glasgow-Campbeltown-Islay route on September 30. The airline now permanently suspends operations.
MIDNIGHT EXPRESS: United States (1983-1988). ME is founded at Atlanta in 1983 to provide regional charter cargo and contract service flights. Operations commence with a single Piper PA-34 Seneca. During the next four years, as operations are undertaken for a variety of concerns, including DHL Corporation and UPS (United Parcel Service) and other air freight forwarders, the fleet is increased to include 4 Em-braer EMB-110 Bandeirantes, 3 Beech 99s, 10 Cessna 402s, and 3 Shorts 330s. Midnight claims that it is the first all-cargo commuter to operate the Embraer and Shorts exclusively in cargo configuration.
In 1987, ME serves 46 cities. In August, the first of three cargo-configured Dornier 228-221Cs is placed into service, the first of its type to be operated by an all-cargo commuter.
Airline employment is increased 66.7% to 130 and a total of 3.8 million FTKs are flown, a boost of 31.5% over the previous year.
Overexpanded, the company ceases operations in 1988.
MIDSTATE AIRLINES: United States (1946-1989). Roy and Lois Shwery found the FBO Marshfield Aviation at Marshfield, Wisconsin, in 1946, pumping gas, making repairs, and operating the usual charters for most of the next two decades. The two establish a Midstate Air Commuter division of their company on February 17, 1964, registering it as Midstate Airways.
With 1 Beech 18, the new carrier flies to Chicago via Milwaukee on a route left void by North Central Airlines and transports 2,710 passengers during its first year. As traffic increases, the company purchases 4 Beech 99s and by 1975 enplanements are 54,786.
Airline employment in 1976 stands at 81, as orders are placed for three Swearingen Metro IIs. Customer bookings jump 21% to 65,221.
In 1977, Midstate obtains its Swearingen Metro IIs. In addition, a new terminal and general office facility, under completion for two years, is opened at the Marshfield base. The corporate identity is now changed to Midstate Airlines.
Enplanements for the year total 74,958.
Midstate adds five more Metro IIs, opens service to Detroit, and enjoys steady growth in 1978. Passenger boardings are up 11% to 83,571.
The workforce is decreased by 2.5% in 1979 to 115. Customer bookings accelerate 3.4% to 86,451, but freight is off by 27.4% to 345,000 pounds.
The employee population is increased by 25% in 1980 to 125. In June, Midstate becomes a wholly owned subsidiary of the Sentry [Insurance] Corporation. John W. Joanis is named chairman with Bryce Appleton as president. Company assets rise from $5.8 million to $20 million overnight.
Upheavals associated with the ownership change result in a 24% drop in enplanements to 65,410 and revenues of only $3.4 million. Nevertheless, President Appleton orders a new color scheme, a new logo, and six more Metros as the last 99s are retired.
Shifting its headquarters to Stevens Point in 1981, Midstate enjoys another exciting—and much more profitable-year. The employee population rises 104.9% to 250 and the fleet is doubled by the addition of 2 Metro IIAs and 4 Metro IIIs. Six new cities are added to the route network: Cedar Rapids, Indianapolis, Minneapolis, Kansas City, La Crosse, and Wausau.
Passenger boardings jump a spectacular 84.2% to 120,494 and revenues hit $7.76 million.
During 1982, a new $2-million maintenance and headquarters facility is completed at the Stevens Point base.
Customer bookings jump again, this time by 66% to 200,020. A total of 191,000 pounds of freight are also transported.
The payroll grows 16.7% in 1983 to 280 and the fleet includes 8 Fairchild-Swearingen Metro IIIs and 4 Metro IIs. Flights are initiated to
Green Bay and Dayton, bringing the total number of cities served to 14 in 8 states.
Passenger traffic this year increases by 13.5% to 227,022 passengers flown and cargo is up 17.1% to 223,000 pounds. Revenues advance by 25% to $18 million and as a result, the Wisconsin-based company moves into the CAB category of large regional.
The payroll is boosted by 48.2% in 1984 to 415 and the fleet includes 12 Metros. Orders are placed for 10 Fokker F.27s (8 firm, 2 options), the first 2 of which are delivered before the end of the summer. The company is certified as an FAR 121 carrier by the FAA, allowing further expansion.
On June 15, new services are opened from Stevens Point to Milwaukee and Rhinelander in Wisconsin and Muskegon and Traverse City in Michigan; nonstop La Cross to Milwaukee flights commence the same day. The company relocates its flight operations in Chicago during July to the $130-million Delta flight center at O’Hare International Airport.
Growth continues at Midstate as the number of customers flown rises another 22.1% to 277,193 and cargo accelerates 29% to 286,000 pounds. Revenues shoot upward by 32% to $23.9 million.
Airline employment grows 3.6% in 1985 to 431 and the fleet is improved by the addition of 4 additional F.27s, bringing the fleet to 6, plus 8 Fairchild Metro IIIs and 4 Metro IIs. In July, a frequent flyer program is initiated providing 1 free ticket in exchange for proof-of-purchase of 20 one-way or 10 roundtrip fares.
Passenger boardings jump 25.3% to 347,585 and freight ascends 31% to 376,000 pounds. Revenues climb 28.2% to $30.1 million, but costs rise quickly and cause an operating loss of $1.39 million and a net downturn of $701,386.
President Bryce Appleton purchases the carrier in 1986 and downsizes it by eliminating all aircraft except the eight Metro IIIs, to which he adds two more. Unprofitable services are also suspended. In May, the carrier leases five Fokker Friendships to the new small regional Chicago Air, which inaugurates services from Chicago (MDW) as a “Midway Connection” partner of the national carrier Midway Airlines (1). The new entrant runs into financial problems early on, and in an effort to protect both the airline and his lease, Appleton accepts a Chicago Air invitation to assume control in October. The new subsidiary continues a heavy loss of money and stops flying at the end of December.
Meanwhile, beginning on October 26, Midstate shifts its focus from Chicago to Milwaukee, increasing its service there from 12 to 34 daily flights. As part of its reorientation, Midstate sells 43 slots at Chicago (ORD) to Simmons Airlines, leasing a few back until its move into Milwaukee is completed.
CEO Appleton’s cutbacks and changes cause customer bookings to fall 35.9% to 222,844.
In 1987, the fleet contains 6 Fokkers. With Chicago Air all but out of business in January—it will file for Chapter XI bankruptcy in February— Midstate assumes its “Midway Connection” code-sharing arrangement. Downsizing of the company continues and it now falls from large regional designation to small. Still, service is initiated to Chicago’s downtown Meigs Field from Indianapolis.
Passenger boardings plunge 45.3% to 121,966. A total of 16,000 pounds of freight are also hauled.
Midstate collapses completely in 1988 as enplanements plunge to just 15,217 by November, the last month for which figures are provided. Not seeing any way out of bankruptcy, the one-time large regional, which has altered its fleet to just 2 leased Fairchild Metro IIIs, suspends operations on January 19, 1989. The Metros are returned to lessor Sentry Insurance and the operating certificate is voluntarily surrendered to the FAA.
MIDSTATE AVIATION CORPORATION: United States (19641965). MAC begins scheduled Cessna lightplane local services from Chicago’s Meigs Field on September 16, 1964. The operation cannot be maintained for more than half a year.
MIDWAY AIRLINES (1): United States (1976-1991). MA-1 holds a special place in U. S. commercial airline history. Organized at Chicago in October 1976 by former Hughes Airwest Chief Operating Officer Irving T. Tague, with the assistance of Kenneth Carlson and William B. Owens, authority is sought from the CAB to operate scheduled passenger services from under-utilized Midway Airport on Chicago’s South Side. The company, incorporated under Delaware law, will be the last certified by the CAB before deregulation. David Hinson becomes chairman and venture capitalists supply $5.7 million in start-up capital over the next two-and-a-half years.
When it begins flying in 1979, President Gordon Linkon’s airline receives recognition as the first all-jet airline (“new entrant”) to be created as a direct result of the Airline Deregulation Act signed into law by President Jimmy Carter in October 1978. Low-fare service on the model introduced by Southwest Airlines is launched by the 243-employee company on November 1 with three leased Douglas DC-9-14s, first operated by Trans World Airlines (TWA), from a base at Chicago (MDW) to Cleveland, Detroit, and Kansas City. The aircraft are painted in rainbow colors.
On November 5, as a sales promotion, the company offers one-day-only flights from Chicago to Kansas City for 37 cents, Cleveland for 33 cents, and Detroit for 27 cents; return flights are at the normal rates of $37, $33, and $27 respectively. Advertisements to the people of Chicago brag: “Kiss O’Hare Good-bye!”
By year’s end, the company has boarded 60,000 passengers. Initial revenues total $2 million, expenses are $2.5 million, and thus a not-unexpected operating loss of $500,000 is achieved.
The employee population in 1980 is 450. The large regional adds five more DC-9-15s, all used. It flies 461,945 travelers and, as expected in a time of fierce competition, operating expenses ($29.44 million) exceed revenues ($24.96 million) and the carrier suffers a $3.62- million operating loss. The net loss is $5.1 million.
The financial picture brightens considerably for the 750-employee airline in 1981, despite the PATCO air traffic controllers’ strike. Midway Airport is not immediately affected by the job action, although, in the fall, the FAA does require that it face the same ATC restrictions as those at O’Hare.
The company’s growing fleet of 9 DC-9-15s and 3 DC-9-31s are able to help the low-fare passenger traffic rise to 748,000 passengers carried. The route network is stretched to a total of 14 markets. Revenues accelerate 58.6% to $73.92 million and even though costs skyrocket 128.2%, they are held to $65.1 million, leaving the first profits: $8.82 million (operating) and $7.55 million (net).
The payroll grows 25% in 1982 to 825 and the fleet is increased through the addition of four DC-9-31s. As the result of the PATCO air traffic controller’s strike, service from Chicago to Omaha is suspended because of FAA flight limitations. Additionally, recession and stiff competition cause a change in management. When founder Tague departs, a new team takes over, headed by former Federal Express President Arthur C. Bass as chairman, along with ex-New York Air President Neal F. Meehan. With the large carriers, led by American Airlines, matching Midway’s discount fares, President Bass and his associates quickly shift tactics.
Emphasizing the business-class approach, they inaugurate Midway Metrolink, which features wider seats and better food at prices 20% below the majors. Midway will call itself the first business-class airline. Plans are made to give the company a complete image overhaul, including new logo, livery, and uniforms, while Chicago (MDW) terminal will get a new look, with upgraded departure lounges, some of which will be equipped with phones and desks for transiting business passengers.
To fund the changes, a “war chest” is raised in two public offerings. One is a sale of 1.5 million shares of common stock that produces $15.45 million, while the other, the sale of 8.5% convertible subordinated debentures, brings in $14.6 million.
The three-year-old airline passes the million passenger mark in boardings for the first time (1,098,337) and eight more DC-9s are acquired to feed the Midway hub. Operating income advances 28.09% to $94.69 million and expenses are held to $90.22 million. Consequently, profits are again generated: $4.46 million (operating) and $346,000 (net).
In 1983, the fleet is increased by three DC-9s. Midway Metrolink service is expanded to five additional cities, including New York. In an effort to find out what business people desire in the way of airline service, Midway begins a nationwide advertising campaign on May 6 urging readers to “create your own airline” and offer suggestions.
In June, Midway begins a promotion in Chicago, St. Louis, and Minneapolis (MSP) offering a free trip to every business passenger who brings along a coworker. Many of the upgrades reviewed for implementation are now put in place, beginning in July at New York (LGA).
Passenger boardings increase by 9% to 1,197,217 and revenues of $103.98 million are earned, up 9.6%. Costs, however, jump 28.2% to $115.65 million. After two years of profits, losses are suffered: $11.67 million (operating) and $15.01 million (net).
The 1,900-employee Midway stretches for a reversal of its slide in 1984, but in retrospect, it may have bitten off too much. First, it begins acquisition of the remnants of the bankrupt Air Florida for $5 million and 200,000 shares of common stock. On October 15, after winning permission in court, the prize is restarted over many of its old routes. Seven Boeing 737-2T4As are employed in this single-class service and the name of the once-large carrier is changed to Midway Express. Operated as a separate carrier, it operates several Air Florida routes from Florida to the Great Lakes and from Miami to St. Croix and St. Thomas. The parent also attempts to launch a helicopter airline, Metrolink, at the Midway hub.
The fleet now includes 2 McDonnell Douglas DC-9-80s (MD-80s), 8 DC-8-31s, 7 ex-Air Florida B-737-2T4As (dedicated to the Midway Express operation), and 15 DC-9-15s. Metrolink business-class service continues to be popular.
Enplanements rise to 1,500,000, including 111,853 boardings contributed by Midway Express. Although revenues rise 43.4% to $149.13 million, the above-cited achievements prove very costly. Expenses jump 39.5% to $161.37 million, including the $6.6-million start-up of Midway Express and the $1.7-million abortive Metrolink. The operating loss worsens to $12.24 million and a $21.96-million net loss is incurred.
Airline employment in 1985 stands at 1,467. Nonstop Midway Metrolink business-class service is inaugurated on February 15 between White Plains, New York, and Washington, D. C. (DCA). Early in the spring, the top management of the carrier is changed again, largely because the Midway Metrolink has proven unprofitable. David Hinson, one of Midway’s original investors, is invited to act as both president and board chairman, succeeding Chairman Bass and President Meehan. He returns to Midway’s no-frills roots, offering both Metromiser low-fares and Metroclub/Metroclass business flights. The Air Florida acquisition is completed on July 24.
In an effort to curb losses, both routes and frequencies are cut in the nine-state service region. Suspensions include the routes from Chicago (MDW) to Milwaukee, White Plains, and Topeka as well as from Detroit to Washington, D. C. (DCA). Frequencies to five other markets are cut; however, that from National Airport to White Plains is increased. The fleet is further strengthened by the acquisition of three more DC-9-31s and the deletion of one ex-Air Florida B-737-2T4A.
Midway Aircraft Engineering Company, a new subsidiary now created to perform contract maintenance and overhaul work, is based at a Miami hangar acquired from Air Florida. In the fall, flights begin to Indianapolis and Fort Myers and acquisition of the last of Air Florida’s assets is concluded on October 15.
A new red on white aircraft livery is adopted when the two services, Midway Express and Midway Metrolink, are combined. A DC-9-31 returns to Detroit (DTT) shortly after takeoff on November 6 when it is beset by violent vibrations apparently caused by a loose or stuck wing flap; no injuries are reported.
In order to promote the company with Chicago-area travel agents, the first annual “Taste of Midway” appreciation dinner and exhibit is held in December. Passenger boardings for the year increase 48.5% to 2,233,514. Revenues at the twelfth largest national carrier ascend by 21.5% to $181.18 million. Costs climb 12.3% to $181.13 million and an operating profit of $52,000 is generated. The net loss is cut to $3.6 million.
Airline employment rises 15% in 1986 to 1,687. With emphasis on vacation and leisure travel, the company now serves 22 destinations. Plans are made during the spring to increase Chicago (MDW) feed via an affiliation with the newly founded small regional Chicago Air. This “Midway Connection” service begins in May. In the fall, a $20-million public offering is made to provide the capital for a year of expansions.
During October, fiscal difficulties at Chicago Air force Midstate Airlines, from which CA is leasing its Fokker F.27s, to step in and assume control. When Chicago Air stops flying in December, Midstate takes over the “Midway Connection” service.
Customer bookings swell by 22% to 2,719,269 and revenues increase by 35.2% to a record $261.36 million. Expenses are up 30% to $250.27 million and allow an operating profit of $11.08 million. A net $9.03-million profit is earned, the best economic performance since start-up.
The workforce increases by 45.8% in 1987 to 2,460 as the airline’s recovery continues apace. Thrice-daily nonstop B-737-2T4A service is inaugurated in January from Denver to Chicago (MDW). Former “Midway Connection” affiliate Chicago Air goes bankrupt in February while in May, Chicago to Omaha service, suspended in 1982, is resumed. The small regional Fischer Brothers Aviation is purchased on May 26 for approximately $2.5 million and reformed at Springfield, Illinois, as Midway Commuter, providing service with 6 Dornier 228-201s to 11 midwestern destinations. Henceforth, its traffic totals will usually be reflected within its parent’s. Also in June, four-times-per-day DC-9-15 flights commence from Chicago to Des Moines.
In July, Jeffrey Erickson is appointed president/CEO. Midway Commuter is given four additional Dorniers during the fourth quarter and in November four-times-per-day DC-9-31 frequencies are initiated from Chicago (MDW) to Columbus. Chicago to Nassau B-737-2T4A flights begin on December 18.
Passenger boardings accelerate 26.2% to 3,432,343 and revenues jump 32.7% to $346.93 million. Expenses are up 29.1% to $323.16 million and the operating profit climbs to $23.77 million. The net $18.84-million profit is a new record.
Airline employment jumps another 21.8% in 1988 to 2,997. Orders are placed for nine McDonnell Douglas MD-87s and two MD-82s; the first of the former arrives just before year’s end. A B-737-2T4A, en route from Tampa to Chicago on February 28, makes an unscheduled landing at Gainesville because of smoke in the cockpit from an electrical problem.
The national now experiences intense competition at Chicago (MDW) and begins to enter several new markets; however, competition and lower earnings will make the new routes unprofitable. The current one-stop service from Chicago (MDW) to Boston via Cleveland is replaced on April 3 with four daily nonstop flights. In May, the company initiates shuttle service to Minneapolis (MSP) from Chicago with an increase from 10 to 12 roundtrips per day.
DC-9-31 frequencies begin in September from Chicago to Sarasota, Jacksonville, and Memphis, with one, two, and three daily roundtrips, respectively, to the three markets. In November, daily B-737-2T4A service is started from Chicago to St. Petersburg.
Customer bookings advance by 25% to 4,690,581 and revenues rise 11.84 million to $388 million. Costs climb 15.89%, but still only reach $374.5 million. As a result, the operating profit is $13.49 million, a $10-million drop from the previous year. Net income falls by two - thirds to $6.54 million.
The employee population grows by 13.4% in 1989 to 3,400 and the fleet now includes 5 B-737-2T4As, 3 B-737-2A5As, 9 DC-9-15s, and 19 DC-9-31s. Orders remain outstanding for 6 MD-87s and 2 MD-82s.
At the end of February, the carrier completes installation of GTE Seatback Airfones aboard every aircraft in its fleet. Following a two-year policy of cautious expansion from the Chicago (MDW) hub, the airline is ready to embark on a more ambitious course. Early in the year, it orders 74 new jets from McDonnell Douglas at a cost of $2 billion.
A marketing agreement is concluded with Canadian Airlines International, Ltd. in March; the arrangement gives the U. S. national access to Canada and CAI routes to 51 more American destinations via Midway’s network. The first of three MD-87s to be received this year enters service on May 1 from Chicago to a new Los Angeles-Orange County market with thrice-daily roundtrips. During May, the Midway Commuter Dornier 228-201 service to Milwaukee is replaced with five-times-per-weekday DC-9-15 frequencies provided by the parent.
A fourth daily Chicago to Los Angeles roundtrip is started in July. In order to make the company a more attractive connector partner for CAI, Midway introduces first-class service in September. Also in September, Midway purchases a $210-million package of assets from financially troubled Eastern Air Lines that includes gates and facilities at Philadelphia, routes from Philadelphia to Toronto and Montreal, and 16 DC-9-31s. To help cover the acquisition cost, the DC-9s are sold and leased back. At the same time, the carrier adopts a natural metal color scheme.
USAir, the primary operator at Philadelphia, had made a bid that was questioned by the DOT and withdrawn. At Chairman Hinson’s direction, Philadelphia now becomes the national’s second, eastern hub, the costs of which are all written off during the fourth quarter; the new base is officially opened on November 15, with flights scheduled to Florida. Also in November, daily service begins from Boston to Hartford to Philadelphia and from Philadelphia to Albany.
An additional daily roundtrip is added on December 15 from Philadelphia to Miami, Tampa, and West Palm Beach and thrice-daily roundtrips start from Philadelphia to Rochester. This year’s “Taste of Midway,” staged for travel agents at the company’s Chicago maintenance hangar, is staffed by 400 company volunteers, costs $150,000, and results in the consumption of 50,000 servings of food, 7 barrels of wine, and 35 barrels of beer.
Two MD-88s are chartered from Polaris Leasing on December 21.
The year’s passenger boardings climb 11.5% to 5,230,127. Revenues advance a nice 19.34% to $463.04 million, but costs increase 27.25% to $475.57 million, producing an operating loss of $13.53 million. From a $6-million-plus net profit the previous year, the company now suffers a net loss of $21.68 million. Still, at decade’s end, Midway and America West Airlines stand as the only surviving airlines of any size that were started as a direct result of the Airline Deregulation Act.
Airline employment increases 67.6% in 1990 to 5,700 and the fleet includes 34 DC-9-31s, 5 B-737-2T4As, 3 B-737-2A5As, and 3 B-737-2K9As leased from Bavaria Fluggesellschaft, GmbH. Additionally, 9 DC-9-15s, 9 MD-80s, and 8 MD-87s are also flown while 6 MD-87s remain on order.
Six daily DC-9-31 roundtrips begin on January 15 from Philadelphia to Boston and Toronto, with thrice-daily service to Albany, Buffalo, Hartford, and Springfield. At this point, the carrier offers 39 daily Douglas departures from Philadelphia to 13 cities. Early in the year, Air New Zealand, Ltd. joins the company’s Flyers First frequent flyer program, which now offers a unique award: one hour of flight time in its B-737 simulator.
In May and June, twice-daily roundtrips commence from Savannah, Georgia, to Chicago and Philadelphia, along with thrice-daily nonstop service from Philadelphia to Columbus. One roundtrip flight is added in July between Chicago and Cleveland, Minneapolis (MSP), and Los Angeles. Following Iraq’s August 2 invasion of Kuwait and the jump in fuel prices, Midway goes into a financial tailspin. As the carrier continues to add services, the public does not see this downturn. For example, Canadian Pacific Hotels and Resorts join the Flyers First frequent flyer program.
In September, one roundtrip is launched daily from Chicago to Omaha and Phoenix. Five-times-per-day DC-9-31 roundtrips, halted in 1984, are resumed from Chicago to St. Louis on October 1. Also in October, daily roundtrip MD-87 Philadelphia-Las Vegas flights commence, along with daily Philadelphia to New Orleans DC-9-31 nonstops.
Overexpanded and with too much capacity, Chairman/CEO Hinson’s administration begins downsizing. Fourteen slots at New York (LGA) and Washington, D. C. (DCA) are sold to American Airlines, also in October, but are leased back for an interim period.
The $100-million Philadelphia hub is sold to USAir, which has wanted it all along, for $67.5 million as the airline retreats to Chicago. There, in December, in a cash-saving move, payments on all leases and loans are suspended even as daily nonstop roundtrips are begun from Chicago to Louisville.
Customer bookings increase 36.4% to 7,135,906 and revenues ascend 32.78% to $614.8 million. Unhappily, costs swell 46.74% to $699.33 million and leave an operating loss of $84.53 million. The net loss skyrockets to $139.21 million, a figure that exceeds the operating revenues of the two smallest nationals, MarkAir and Midwest Express.
Daily roundtrip service begins on January 8, 1991, from Chicago Midway to Hartford and Springfield, Connecticut. Also in January, one nonstop roundtrip per day is added from Chicago to Cleveland, Las Vegas, Orlando, Phoenix, Sarasota, and Tampa, while in February, nonstop flights begin from Philadelphia to Las Vegas, with continuing service to Los Angeles. The Chicago to Omaha frequencies are increased in March from three daily flights to four.
The pressures of expansion combined with the effects of recession, the Gulf War, the steep rise in oil prices, and the expensive Philadelphia hub cause losses to mount and on March 25, the deregulation-born national declares Chapter XI bankruptcy. Shortly afterwards, the carrier secures $40 million in debtor-in-possession financing from Chicago’s Continental Bank. While continuing to downsize, the airline maintains its full, 53-destination schedule.
A DC-9-31 with 100 aboard is forced to make an emergency landing at Nashville on April 22 after losing cabin pressure.
On June 1, service from Chicago to Louisville is upgraded from commuter aircraft to DC-9-31s. On August 7, the Federal District Court in Atlanta converts an antitrust lawsuit against Midway and nine other airlines into a class-action suit that could benefit many consumers and cost the carriers millions of dollars. The antitrust suit charges that this company and the others conspired to keep ticket prices high at 23 hub airports.
On August 29, seven miles from Cleveland, the flight crew of a DC-9-31 has been assigned the wrong radio frequency and is unable to communicate with controllers. Pilots on the DC-9 view a British Airways, Ltd. (2) DC-10-30 en route from Toronto to Chicago and out of proper voice communication with controllers, coming at them head-on. The U. S. aircraft is able to take evasive action and save the 277 passengers on both jetliners.
A DC-9-31 comes within 1,000 feet of colliding with a Southwest Airlines B-737-2H4A over Chicago (MDW) on October 4.
Later in the fall, merger negotiations are undertaken with Northwest Airlines, during which process the Minneapolis-based major acquires 18 gates at Chicago (MDW).
Unable to cover the costs of a takeover, Northwest Airlines withdraws from the process and its merger agreement on November 12, forcing Midway to cease operations the next day.
During the 11 months of its final year, the national’s enplanements decline 33.6% to 4,322,000, but freight skyrockets 70.3% to 16.2 million FTKs. Although revenues are down 18.8% to $250.81 million, expenses drop 17.5% to $282.15 million and guarantee a $31.33- million operating loss. The net failure deepens to $37.09 million. The carrier, unable to resume operations, is now liquidated.
MIDWAY AIRLINES (2): 300 West Morgan Street, Suite 1200, Durham, North Carolina 27701, United States; Phone (919) 9564800; Fax (919) 956-4801; Http://www. midwayair. com; Code JL; Year Founded 1993. A second Midway Airlines is born at Chicago (MDW) in the fall of 1993 when the owners of Jet Express purchase the name of the failed carrier in order to rename their own. All 150 of the first employees are former Midway Airlines (1) workers. Outfitted with the first two leased Fokker 100s from an order for eight, the carrier launches six-times-per-day roundtrip deep discount service over a single route to New York (LGA) on November 15 catering to business travelers.
Among the amenities offered are leather seats, hot towels, and breath mints. A frequent flyer program giving one free roundtrip for every 10,000 miles flown is announced; up to 50,000 miles credit is given for miles earned under the Flyers First program of Midway Airlines (1). By the end of December, a total of 16,000 passengers are carried.
Service is expanded on January 17, 1994 with daily nonstop roundtrips added from Chicago (MDW) to Denver and Philadelphia, as well as such service from New York (LGA) to Denver and from Philadelphia to Denver. In the spring, six more Fokker 100s are chartered and the route network is expanded to Dallas (DFW). Code-sharing discussions are held with Midway Connector.
In August, the Chicago-based investment limited partnership Zell and Chilmark Fund spends $25 million to acquire 90% controlling interest, at which point Jerry Jacobs becomes chairman and John Selvaggio is appointed president/CEO. Both men are former American Airlines executives brought up in the Robert Crandall school of management. Arrangements are made with the major for a variety of contract services, including heavy maintenance, reservations, training, and ramp and gate services at New York.
Late in the year, plans are made to open a hub at Raleigh/Durham during the following March and replace the withdrawing American Airlines. Arrangements are made with Chicago Express Airlines for its transfer as well, allowing it to provide commuter feed when the operation is in full swing during the spring. Orders are placed for two (later three) Airbus Industrie A320-231s from the Japanese leasing concerns ORIX Corporation and Kawasaki, plus additional Fokker 100s.
For the first full year, enplanements total 362,000. Revenues are $31.51 million and expenses are $52.92 million. As a result, there is an operating loss of $21.4 million and a net loss of $21.67 million.
The fleet in 1995 includes 12 leased Fokker 100s. Twice-daily roundtrips are added on January 15 from Chicago (MDW) to Orlando and Tampa. At the same time, EasyTickets, a 20-pack book of flight coupons, is made available for $1,900. The coupons are good for a year and can be employed on flights to any of the cities served by Midway.
On March 2, agreement is reached with American Airlines on the provision of joint airport slot sharing, advertising, and promotions. Additionally, the two companies link their computerized reservations system and frequent flyer programs. Midway now officially subleases seven Raleigh/Durham gates from AA, which also underwrites Midway’s terminal leases and provides Fokker maintenance and pilot training.
On March 2, Midway launches some 22 daily departures to Boston, New York (JFK), Washington, D. C. (DCA), Tampa, Orlando, West Palm Beach, and Chicago (MDW).
Transfer of the company hub to the nearly empty Concourse C at Raleigh/Durham is started on April 8. The first A320-231s are introduced on June 4; they will eventually be found to be too large and be replaced with smaller aircraft.
With American Airlines all but withdrawn from its former North Carolina base on June 15, Midway takes over five more gates and inaugurates frequencies to Hartford, MacArthur International Airport in New York, Philadelphia, and Fort Lauderdale.
Corporate headquarters are moved to North Carolina from Chicago between August 3-15. Other destinations visited grow to include Boston, Providence, Newburgh, New York, Newark, Fort Myers, Jacksonville, San Juan, Las Vegas, and Cancun, Mexico. All five A320-231s are in service by December as the carrier now offers 128 daily services from its new southern home.
The shift from Chicago appears successful as enplanements for the year skyrocket 241.4% to 1,235,000. Income slightly exceeds costs and there is a $71,000 operating gain. There is also a $116,000 net loss.
The employee population numbers 880 in 1996 and will reach 1,400 by summer. Between February and April, the four A320-231s chartered from ORIX Corporation are returned as an effort is made to increase Fokker 100 utilization. Two of the European-built aircraft are turned over to America West Airlines and are flown under contract by Midway crews. The remaining Airbus continues the services to Las Vegas and Cancun; however, flights to Fort Myers, Jacksonville, and San Juan are terminated. Departures from Raleigh/Durham reach 60 per day by July.
Customer bookings surge 37.8% to 1,702,514 and revenues of $179.01 million are earned. Unhappily, expenses of $182.04 million are incurred, leaving a $3.03-million operating loss. The previous year’s net loss deepens to $7.49 million.
The workforce grows by 6.7% in 1997 to 779. North Carolina software company owner James Goodnight heads an investment team that injects $20 million in new capital into the carrier beginning in February. The infusion allows the carrier to restructure its debt and to begin saving $12 million per year in various costs, especially interest payments.
World Technology Systems President Kent Elsbree begins to make major decisions even as former Continental Airlines CEO Robert R. Ferguson III is named president. The airline continues to also be known as Jet Express.
To promote its new daily Fokker 100 service from Raleigh/Durham to Atlanta that begins on September 29, customers flying the route on the inaugural day pay only $3 for their one-way ticket.
On October 1, a $207-million order is placed with Bombardier Regional Aircraft for 10 Canadair CRJ-200ERs. Deliveries commence in November and will continue through December 1998.
An initial public offering of 4.2 million shares of common stock is made on December 4. Gross proceeds of $65 million are raised and will be employed to help pay for the new Canadair regional jets. The value of company stock will climb 17% by April 1.
Passenger boardings for the year fall 4.8% to 1,660,140, while freight plunges 22.8% to 222,000 FTKs. Operating revenues climb 3.4% to $186.16 million, while expenses total $171.04 million. The previous year’s operating loss is turned into a $15.11-million operating profit, while the net loss becomes a $24.89-million net gain.
The first CRJ-200ER, in Midway’s yellow and white livery, enters service on January 7, 1998. Flights from Raleigh/Durham to Orlando simultaneously go from three to four (three Fokker 100, one CRJ-200ER), while those from the North Carolina hub to Boston are similarly increased.
Also during the month, the National Mediation Board (NMB) certifies the choice of the company’s pilots for representation by ALPA. In February, company flight attendants vote not to join the Association of Flight Attendants (AFA).
With three new Canadairs now available, thrice-daily CRJ-200ER nonstop roundtrips commence on March 23 between Raleigh/Durham and Jacksonville, Florida. The company’s thrice-daily roundtrips between Raleigh/Durham and Philadelphia are increased to four times a day, all flown by Canadairs.
With four CRJ-200ERs on hand by April 1, CRJ services are increased from Raleigh/Durham on April 6. The number of daily nonstops grows to four at Fort Lauderdale and Newark and five in Philadelphia.
As the result of the new competition between USAirways’ Metrojet division and Southwest Airlines (2) elsewhere, Midway continues to enjoy a spectacular piece of good fortune—neither of the giant discount operators have as yet eyed a move into the carrier’s Research Triangle hub at Raleigh/Durham.
With the arrival of CRJ No. 5, Midway, on June 14, inaugurates a daily roundtrip jet service between Raleigh/Durham and both Charleston and Myrtle Beach, South Carolina. The next day, thrice-daily roundtrips begin from Raleigh/Durham to Columbus, Ohio, and a sixth daily roundtrip is added from the North Carolina hub to Boston.
At the beginning of August, Midway operates 104 daily nonstop flights between 16 destinations in 9 eastern states and its hub at
Raleigh/Durham. On August 26, many of these in the southeast are cancelled or delayed in the face of Hurricane Bonnie. Except for an unusually high number of reservations, service returns to normal the next day.
Two more CRJs arrive in late summer and early fall. On October 1, one of these is employed to initiate thrice-daily nonstop return service between Raleigh/Durham and Indianapolis. The NMB rules on October 30 that the flight attendants February vote to join AFA is invalid due to interference in the process by the airline. A new election is ordered.
Two more CRJs are delivered in October and November and enter service.
A $64-million order is placed with Bombardier Aerospace on December 8 for three more CRJ-200ERs. The contract represents the conversion of three existing options to firm orders, with deliveries scheduled for December 1999 and February and March 2000.
New jet service is announced on December 16. With the delivery of the 11th CRJ, the carrier will, on February 8, initiate daily nonstop roundtrips from Raleigh/Durham to New Orleans and Columbia, South Carolina. Additionally, it will offer one more jet service daily from the North Carolina hub to Charleston, South Carolina: Hartford, Connecticut, Newark, New Jersey, and Newburgh, New York.
A successful vote by the company’s flight attendants to join AFA results in Midway’s filing a complaint against the union on December 23 charging it with making false claims during the campaign. The NMB will investigate the charge in the new year.
Simultaneously, the carrier announces that it will launch its Raleigh/ Durham to New Orleans roundtrips on February 4, four days earlier than announced, in order to provide lift for travelers wanting to participate in Mardi Gras.
Passenger boardings climb 31.84% to 1,995,117, while freight traffic accelerates 32.24% to 293,000 FTKs. Revenues for the year increases by 13.5% to $211.43 million and expenses are up 8.3% to $185.3 million. This happy balance provides a $26.1-million operating profit, up 73% over 1997. Net gain jumps 79% to $15.9 million.
At the beginning of 1999, plans are made to retire two Fokker 100s and the A320.
With the delivery of the 11th CRJ, the carrier, as scheduled, initiates daily nonstop roundtrips from Raleigh/Durham to New Orleans and Columbia on February 4. Additionally, it offers one more jet service daily from the North Carolina hub to Charleston, Hartford, Newark, and Newburgh.
The next day, the NMB dismisses the airline management’s challenge to the company’s flight attendants’ election to become members of the AFA.
Late in the third quarter, two of the three Fokker 100 s are placed by Cabot Aviation with Gill Airways, Ltd. in Newcastle, England.
A follow-on, $65-million order is placed with Bombardier Aerospace on April 12 for three more CRJ-200ERs.
Midway joins with UPS (United Parcel Service) on May 15 to cohost a fund-raising event at Raleigh/Durham on behalf of the 1999 Special Olympics World Summer Games and the North Carolina Special Olympics team. Outside the UPS Cargo terminal, teams of 8 workers from each carrier test their strength in pulling a 30,000-pound CRJ-200ER in a first annual “Plane Pull.”
In an event timed to coincide with the Paris Air Show, President/CEO Ferguson announces an order on June 14 for 15 Next Generation B-737-700s, with 10 options. He also notes that two additional B-737-700s will be chartered from GE Capital Aviation Services, with the first scheduled for December delivery.
Thrice-daily nonstop CRJ-200ER roundtrips are inaugurated on August 6 between Raleigh/Durham and Memphis.
Four-times-a-day CRJ200ER roundtrips are inaugurated on August 20 from Raleigh/Durham to Columbus, Jacksonville, and Indianapolis. Thrice-daily CRJ200ER return flights begin on October 15 from Raleigh/ Durham to Louisville.
James Goodnight and John Sall, already owners of 47.4% of the company’s stock, offer to purchase the carrier outright in November for $8 a share or $36 million. The arrangement, which would see Midway merged into a company owned by Goodnight and Sall, is contingent upon the board’s retaining former Continental Airlines CEO Robert Ferguson as CEO.
A chartered Next Generation B-737-76N is delivered by GECAS on December 14 as the first in an eventual nine-plane order. During the month, the investment banking firm of Morgan Stanley Dean Winter is appointed to evaluate the Goodnight-Sall merger proposal.
Passenger boardings this year rise 3.4% to 2,063,000. Revenues are up 3.1% to $217.94 million, while expenses jump 8.6% to $201.23 million. The operating profit falls to $16.71 million, while the net gain is down to $9.35 million.
Airline employment at the beginning of 2000 stands at 1,303, a 40.9% increase over the previous 12 months. The second Next Generation B-737-76N is turned over to the company on January 19. Having failed to come to terms with the Midway board over the value of stock not owned, stakeholders Goodnight and Sall withdraw their unsolicited takeover bid as the month ends.
The two new Next Generation B-737-76Ns enter service on February 10 from Raleigh/Durham to Fort Lauderdale and Orlando. In late February, Steven Westberg is elevated to executive vice president/general manager.
The company announces on March 10 that it is exercising an option to terminate the leases on four Fokker 100s during the first half of 2001 rather than in the winter of 2003-2004 as originally scheduled. The next day, the company and its ALPA-represented pilots reach tentative agreement on a new four-year contract, effective April 1 upon ratification. Pay raises and work rule changes are included in the new pact.
Thrice-daily nonstop Fokker 100 return service is inaugurated on May 22 from Raleigh to Buffalo.
With the decision taken to privatize the 99.37% of shares held by the Central Bank in MEA, the International Finance Corporation (IFC), the executive arm of the World Bank, is retained on July 17 to act as lead advisor in the divestment. An exact timetable is not provided at this time, as the first goal will be to locate a strategic partner.
Arrangements are completed on July 21 for the lease of three Next Generation B-737-7BXs; the first will arrive in November, with the other two coming in October and November 2001. Midway grosses $34 million from a shareholders’ rights offering that expires on July 26. The airline is to issue 6.6 million shares, raising the number of these outstanding and issued stock certificates to 15.2 million.
On August 8, new daily CRJ200ER roundtrips are initiated from Raleigh/Durham to Norfolk. These supplement four daily flights offered by partner Corporate Airlines. Three additional daily roundtrips, for a total of nine, are added on August 31 between Raleigh/Durham and New York (LGA).
To celebrate the success of the route, a special $9 one-way fare is offered over it on Labor Day, September 4. The third Next Generation B-737, a Dash-7BX, is delivered on November 29.
It is confirmed on October 12 that two more Next Generation B-737-7BXs will be leased, arriving in January and June 2001. At the same time, it is noted that the Fokker 100s will be gone by 2002 and that Midway will not purchase its 14 remaining options for CRJ200ERs. Another Next Generation B-737-7BX is received on October 19.
Twice-daily Next Generation B-737-7BX return frequencies are launched on November 7 between Raleigh/Durham and San Jose, California, using the fourth new NGB-737-&BX. Two more Next Generation B-737-7BXs are now received, one each on November 21 and November 29.
As the result of a spring law allowing an increase in traffic, New York (LGA) has, by early December, added more than 200 new daily flights and requests have been made that will increase the daily total by almost 600. In an effort to handle an increase certain to exacerbate existing delays and congestion, the FAA and the Port Authority of New York and New Jersey begin coordinating planning while imposing a September moratorium on new La Guardia flights.
On December 4, the FAA holds an action to distribute the available takeoff and landing slots. Each carrier serving the airport draws a certain number, with each then choosing lots for first choice of times for those slots. Midway receives 15 of the new positions.
Daily roundtrip service is inaugurated on December 15 between Raleigh/Durham and Pittsburgh. It is operated by the carrier’s sixth new Next Generation B-737-7BX.
Four-times-a-day CRJ200ER roundtrips are inaugurated on December 14 between Raleigh/Durham and Pittsburgh. All of the proceeds from the first flight are donated to Toys for Tots, along with a number of unwrapped new toys donated by invited passengers. Twice-weekly Next Generation B-737-7BX seasonal service, continuing through March 31, is started on December 19 from Raleigh/Durham to Steamboat Springs, Colorado.
Following two days of intensive negotiations under auspices of the National Mediation Board, a tentative agreement is reached on December 22 between the company and the International Association of Machinists and Aerospace Workers.
MIDWAY COMMUTER: United States (1987-1992). The small regional Fischer Brothers Aviation, based at Galion, Ohio, is purchased by the Chicago-based national carrier Midway Airlines (1) on May 26, 1987 for approximately $2.5 million and is reformed at Springfield, Illinois, as Midway Commuter, outfitted with 6 Dornier 228-201s. Several weeks later, on June 15, the company begins operations and joins with Chicago Airlines and Iowa Airways to form the “Midway Connection” feeder agreement.
In July, services are launched to Chicago (MDW) from Grand Rapids, Traverse City, Green Bay, Madison, Peoria, and Springfield. Five-times-per-day Dornier frequencies commence in October from Chicago to Bloomington, Illinois.
Enplanements for the partial year of service total 85,000.
During 1988, President Richard Pfennig’s carrier takes delivery of 10 more Dornier 228s and Dash-202s. “Midway Connection” flights are started to Lansing and Fort Wayne five times daily in May, while in October nonstop daily service is initiated to Lafayette, Indiana.
The ex-Buckeye airline transports 433,000 passengers on the year.
The fleet grows to 21 Dorniers in 1989 as a $240-million order is placed with the turboprops’ manufacturer for 33 Dornier 328s, plus 40 options. To meet capacity requirements until the American launch customer’s aircraft can be built, Dornier agrees to provide 15 Embraer EMB-120 Brasilias under lease.
A total of 548,962 passengers are flown on the year.
The first Dornier-supplied Brasilia enters service with the 501-employee regional in May 1990. In November, one roundtrip flight is added from Chicago to Green Bay, Madison, Moline, and Springfield and two from Chicago to Milwaukee.
Passenger boardings for the year rise 18.2% to 649,067.
EMB-120 service is launched in January 1991 from Chicago to Toledo’s Express Airport. Five-times-per-day nonstop Brasilia frequencies are initiated in February from Chicago to Louisville. During the spring, the Midway Airlines (1) parent files for Chapter XI bankruptcy. Still, as it works to emerge, its 128-employee subsidiary maintains a full schedule until November 13 when, together with the larger carrier, it ceases operations. Prior to shutdown, the former Buckeye commuter transports 538,554 passengers, a decline of 17.1% from the previous year.
Hopes are raised for the creation of a separate airline at the beginning of 1992, but when President Dick Pfennig has his company’s assets separated from parent Midway Airlines (1) by a bankruptcy court, they are not realized. The company is liquidated in April under Chapter VII of the federal bankruptcy law. President Pfennig moves on to become president of Jetstream International Airlines and the outstanding orders to Dornier are cancelled.
MIDWAY CONNECTION: United States (1993-1994). In the fall of 1993, Will Davis’s Gary, Indiana-based Direct Air, which is providing
MarkAir Direct feeder service on behalf of Anchorage-based MarkAir, is acquired by the Chicago investment consortium, Midway Connection Group, created by Northern Star Companies of Lansing, Michigan. An order is placed for 14 Fairchild Metro 23 s with which to replace Direct Air’s fleet of Beech 1900s and CATPASS 1300s.
Renamed and with a fleet upgraded to include 2 Beech 1900s and 5 CATPASS 1300s, MC undertakes services from Chicago (MDW) on November 1. The first Metro 23 arrives later in the month.
Under both its Direct Air and Midway monikers, the small regional transports a total of 50,000 passengers on the year.
Early in 1994, code-sharing discussions are initiated with Midway Airlines (2). They lead nowhere and MC shuts down. The MC moniker will later be assumed by Great Lakes Aviation.
World History
