SWA starts MSP service
A Guy Called Tyketto
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SWA must be smelling blood if they are starting MDW-MSP
service. So far, the only service from Chicago to Minneapolis is NWA
via Compass, and that's pretty much a monopoly for that route.
Depending on how much they want to capitalize on NWA's frequent flier's
woes with the NWA-DAL merger, they could launch service on more of
NWA's routes, like MSP-DTW, MSP-OMA, etc. etc.
With Sun Country still doing charter flights (last I remember)
and not really in the picture, anyone know the health status of Midwest
Airlines?
BL.
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A Guy Called Tyketto
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At least now we know why SWA is coming to MSP, and the blood
they smelled there. From the AP:
- --snip--
Leisure carrier Sun Country Airlines filed for bankruptcy-court
protection Monday after running into a cash squeeze when its owner,
Petters Group Worldwide, became the target of a federal probe for
allegedly defrauding hedge funds.
Thomas Petters, founder of the Minnetonka, Minn., firm that owns
Fingerhut, Polaroid, Sun Country and other investments, was arrested
Friday on charges of mail and wire fraud, money laundering and
obstructing justice, federal prosecutors said. He had resigned as
chairman and chief executive of the company earlier in the week.
- --snip--
With SCX having gone Ch. 11 in 2002, going back to charter
service from scheduled service, and dropping their B722s and DC10s for
B738s, I don't know how much more restructuring they outside of
furloughing pilots, FAs, and grounds crew. They say that doing this
won't disrupt operations, but how much do they have left in their
coffers to survive another bankruptcy filing? It's going to be a rough
time for them, and if SWA is moving in, signs aren't good.
BL.
- --
Brad Littlejohn | Email: tyk...@sbcglobal.net
Unix Systems Administrator, | tyk...@ozemail.com.au
Web + NewsMaster, BOFH.. Smeghead! :) | http://www.wizard.com/~tyketto
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JF Mezei
> furloughing pilots, FAs, and grounds crew. They say that doing this
> won't disrupt operations, but how much do they have left in their
> coffers to survive another bankruptcy filing? It's going to be a rough
> time for them, and if SWA is moving in, signs aren't good.
The chapter 11 judge is tasked to look/receive plans to make the company
viable again. This would include some recapitalisation and company
changes to make it profitable again.
Both SWA and Delta coming into that market (since Delta is set to buy
NWA), uit will make it much harder for Sun Country to develop a viable
restreucturing plan and find an investor willing to recapitalise it
because the odds of success will be much lower.
Normally, the DL/NW merger might have attracted antitrust issues
requiring some concessions for certain city pairs. And airline wishing
to enter the market would benefit from waiting for the government
decsion and benefit from some of the concessions having to be made ny NW/DL.
With SWA announcing entry into that city now, it means that the
government will now see that city has having competitive service and not
wish to get any concessions from NW/DL. So in the end, SWA probably
knew that the governmnet was going to authorise the merger without any
concessions that might have benefitted itself, so there was no point in
waiting for the decision.